No lift to aviation sector from Malaysia-Indonesia travel bubble

• Feb 15, 2021

PETALING JAYA: The travel bubble between Malaysia and Indonesia would not have significant impact on the aviation sector as strict travel conditions may limit passenger traffic.

It was reported that Malaysia has been given the green light by Indonesia over a Reciprocal Green Lane/Travel Corridor Arrangement (RGL/TCA) travel bubble between both nations.

A bank-backed research analyst told StarBiz the travel bubble was likely to have strict conditions and limitations for travellers, and hence, the positive impact to the aviation sector and companies like AirAsia Group Bhd and Malaysia Airports Holdings Bhd would be relatively immaterial.

“The global Covid-19 vaccination rollouts paint a more positive outlook for the aviation sector, enabling potential recovery in air travel demand when borders open, ” said the analyst, who also cautioned that there are still uncertainties and risks pertaining to the effectiveness of the vaccinations.

Meanwhile, the Malaysian Association of Convention and Exhibition Organisers and Suppliers (MACEOS) also welcomed the news of the agreement.

“We look forward to seeing the opening of borders between Malaysia and Indonesia and anticipate that this would facilitate the movement of business travellers between the two countries, ” said MACEOS president Francis Teo (pic) in a statement.

Teo noted that for the RGL/TCA to work, details of the initiative would need to be identified properly when it is implemented once the situation in both countries improves.

He suggested for airports and immigrations to look into providing permanent special lanes and counters dedicated to these travellers to facilitate their movement upon arrival.

Source: https://www.thestar.com.my/business/business-news/2021/02/15/no-lift-to-aviation-sector-from-malaysia-indonesia-travel-bubble