PETALING JAYA: The transport ministry will hold discussions with airport operators and other stakeholders on ways they can collectively support local airlines, says minister Loke Siew Fook.
Loke said he chaired a meeting today with the management of airlines, airport operators, jet fuel suppliers and aviation authorities to discuss facing the oil price surge following the Middle East conflict.
He said that in the short term, Putrajaya needed to ensure that air cargo transport services continue despite the “challenging” situation, especially ahead of Aidilfitri.
“The ministry acknowledges the challenges faced by airlines. Since fuel costs have surged to nearly half of their operational costs, airlines may need to halt certain flights if fuel prices continue rising.
“The ministry will discuss with airports and relevant stakeholders to support the business continuity of local airlines.
“Airlines will also share relevant data with aviation authorities so that more holistic risk assessments can be conducted,” he said in a Facebook post.
Loke added that all stakeholders agreed to meet every week since the crisis remained uncertain and would require a swift response if new developments surface.
The closure of the Strait of Hormuz, a key passageway for about 20% of the world’s oil supply, has led to a surge in oil prices, forcing some airlines to suspend flights and nations to implement work-from-home policies as part of energy-saving measures.
Batik Air Malaysia has announced adjustments to fuel surcharges for both domestic and international routes, with the revision taking effect in stages.
Malaysia Aviation Group Bhd’s Malaysia Airlines and Firefly have both also announced they would impose fuel surcharge adjustments.
