Singapore, Malaysia considering Kuala Lumpur-Singapore budget flights


SINGAPORE (XFNews-ASIA) - Malaysia and Singapore are mulling the possibility of allowing budget airlines to fly the Kuala Lumpur-Singapore route, which is now dominated by Malaysia Airlines and Singapore Airlines, the Business Times reported.

The newspaper quoted Singapore Transport Minister Raymond Lim as saying: "We believe the liberalization of the aviation sector will benefit both countries whether in tourism, trade or investment."

Lim met Malaysian Transport Minister Chan Kong Choy in Kuala Lumupur yesterday.

Chan said Malaysia would present a report to Singapore within the next few days on whether the Kuala Lumpur-Singapore air route should be opened up to competition.

Even if they decide not to open up the route now, it will eventually have to be opened up to new players by 2008, when the ASEAN open-skies deal takes effect, the newspaper said.

Want More Analysis Like This?

CAPA Membership provides access to all news and analysis on the site, along with access to many areas of our comprehensive databases and toolsets.
Find Out More