Loss-making flag carrier Malaysia Airlines (MAS) has been given approval to raise fuel surcharges on domestic routes, reports said today.

Transport Minister Chan Kong Choy said that it was now up to MAS to decide when to impose the higher surcharges.

"The increase in fuel surcharge will help MAS in the long run," Chan was quoted as saying by the Star daily.

The national Bernama news agency quoted Chan as saying the government has approved an increase from RM15 to RM36 for flights between West and East Malaysia, and from RM7.50 to RM15 for flights within peninsular Malaysia.

Application rejected

Chan said yesterday that the government had rejected an application by the airline to raise fares on domestic routes. It last enjoyed a fare hike 13 years ago.

The ailing carrier recently announced a four billion ringgit rescue plan aimed at returning to profitability by 2007, with many of its domestic routes to be taken over by low-cost pioneer AirAsia.

MAS, which posted a RM1.3 billion loss for the 2005 financial year, has blamed its troubles on crippling fuel prices and lower load factors.