Penang offers to pay airlines to open new routes
The Malaysian holiday island of Penang has proposed a tempting offer for airlines.
The local government plans to pay airlines to operate international flights to the island.
Penang Chief Minister Lim Guan Eng said the state administration will use funds raised from hotel taxes to offer US$10 (RM37) per passenger for direct flights from specific markets.
It has initially targeted Seoul, Yangon and Bandung in Indonesia for the subsidised flights.
The chief minister said he first brought up the idea with Malaysian budget carrier AirAsia during a recent travel trade event.
Lim said the offer is open to all airlines and has already sounded out other local carriers including Malaysia Airlines, Firefly, Malindo Air and also Korean Air.
"We proposed this to the airlines last month and so far none has responded yet as it will take time to map out direct flights," he told local media.
He added that it would likely be for a set period of time until the new routes become established.
Airports typically offer incentives for airlines to establish new routes, such as discounted landing fees and joint -funded marketing campaigns, but rarely offer to pay carriers on a per passenger basis.
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Editor for TravelMole North America and Asia pacific regions. Ray is a highly experienced (15+ years) skilled journalist and editor predominantly in travel, hospitality and lifestyle working with a huge number of major market-leading brands. He has also cover in-depth news, interviews and features in general business, finance, tech and geopolitical issues for a select few major news outlets and publishers.
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