By B.K. SIDHU

MALAYSIA Airlines (MAS) would be asking the government to consider a fare increase between the peninsula and Sabah and Sarawak, managing director Datuk Mohamad Nor Yusof said.

However, he declined to divulge the percentage increase sought.

The government had in July given MAS the nod to implement an average fare increase of 51.8% for its domestic routes within the peninsular, which came into effect on Aug 1.

At that time it refused MAS’ request for a rise in fares between the peninsula and east Malaysia.

As part of MAS fast-track turnaround plan, Mohamad Nor said, the airline would look into ways of further reducing costs in its domestic operations.

MAS said it would not cut back domestic services unless there was insufficient demand.

On the contrary, MAS might be planning to increase frequencies to and from, as well as within, Sabah and Sarawak as part of its upcoming winter schedule.

On the airline’s cargo operations, Mohamad Nor said that MAS was enjoying brisk demand due to shortage of space in the market after the Sept 11 attacks in the United States.

Asked if MAS was considering increasing surcharges on cargo, Mohamad Nor said no decision had been taken.

However, cargo operators had already increased the surcharges.

MAS had in June entered into an alliance with KLM Royal Dutch Airlines to align its marketing, sales and distribution activities.

As part of the turnaround plan, both parties were to enter a formal agreement.

Mohamad Nor said talks were in the advanced stage for an alliance to allow MAS to build on KLM’s extensive network, and enhance its reach in Europe.

Asked if KLM would be taking an equity stake in MAS, Mohamad Nor said: “We are not looking at the issue at this stage.’’

On job cuts, Mohamad Nor said MAS would likely deploy a voluntary separation scheme.

However, the management would only look into this issue in December.

While there would be a need to lay off staff, there was also an acute shortage in specialised areas.

Meanwhile, MAS said in a statement that it would not compromise on the safety of passengers and staff with regard to terrorist threats and risk of war.

“MAS would do everything it can to support and comply with stringent safety requirements of the various regulatory authorities,” he said.

MAS’ security measures are further boosted by stricter security checks on passengers and baggage undertaken by airport authorities worldwide following the Sept 11 incidents in the US.

“We are closely monitoring developments in the potential conflict areas, and will take appropriate measures to ensure the safety of our passengers and staff,’’ Mohamad Nor said.