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Incentives mulled to lure airlines into sub-region
Thu, Jul 29, 2010
The Brunei Times

Brunei is looking into the provision of incentives for airlines to help further develop air links within the sub-region Bimp-Eaga.

These incentives would include the reduction of some airport fees that would attract airlines to service routes that improve the connectivity of destinations within the Brunei Darussalam, Indonesia, Malaysia, Philippines-East Asean Growth Area (Bimp-Eaga).

During a press conference at the Fifth Bimp Eaga Transport Ministers Meeting (TMM), Brunei's Minister of Communication said that airports in the region like Sabah along with other Malaysian states are also looking at incentives as a way of encouraging airlines to fly to their destinations.

Pehin Orang Kaya Hamzah Pahlawan Dato Seri Setia Hj Abdullah Begawan Mudim Dato Paduka Hj Bakar added that besides incentives, work continues to be done to improve existing facilities at the Bruneian airport to attract more traffic.

"The main attraction will possibly be in the introduction of incentives of operational rates and charges that can be levied. Landing rates, operational costs with other relevant rates and charges within the control of airports are examples of these incentives," Pehin Dato Abdullah explained.

Bimp-Eaga has been offering airlines within the area the fifth freedom traffic right that allows airlines to fly between points in two foreign countries. This right applies to 13 airports in Eaga. Financial incentives will be the next factor taken into consideration for an airline, the minister explained. They said: "We encouraged the designated Bimp-Eaga airlines to take advantage of this enabling sub-regional framework and the incentives provided and to increase their services within the sub-region."

Pehin Dato Abdullah said budget airlines will have an impact on national carriers but low-cost carriers will lose their edge on some aspects.

 

 

 

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