Motion to review domestic flight fares defeated
July 10, 2015 9:23 pm
A motion to review the current domestic flight business model was defeated in parliament this morning following a lengthy debate.
During a vote, twenty seven MPs voted against the motion moved by the Opposition Member Salote Radrodro.
Opposition Member Salote Radrodro says the flight business model needs to be reviewed with a view to reducing flight costs to allow affordable low-cost domestic services for the people.
“Current service provider has a monopoly on the market. Essentially profitability levels opt to be hitting breakeven point or attaining normal profit. The fuel prices have significantly gone down but the relative downward adjustment to air fares has not happened.”
In response, Attorney General and Civil Aviation Minister Aiyaz Sayed-Khaiyum said the government is providing subsidies to most of the islands.
He adds, the subsidy for domestic air has increased by $1.6m.
Seventeen MP’s voted in favour of the motion and six did not vote.