Kuala Lumpur (XFNews-ASIA) - Malaysia is studying the possibility of allowing budget carriers AirAsia and Singapore-based Tiger Airways to fly the lucrative Kuala Lumpur-Singapore route, the New Sunday Times newspaper reported.
Transport Minister Chan Kong Choy said a committee has been set up to study the pros and cons of allowing the two low cost carriers to fly the route.
"The committee has two weeks to make recommendations on the feasibility and impact of such a move," he was quoted as saying.
Chan said the committee was set up last week, headed by the ministry's secretary-general, Muhamad Safaruddin Muhamad Sidek.
AirAsia has expressed interest in flying to Singapore at a much lower fare.
Tiger Airways has the backing of Singapore Airlines, which owns 49 pct of the carrier. State-linked Singapore investment company Temasek Holdings is also a key shareholder with 11 pct.
The near hour-long route is currently monopolised by national carriers Malaysian Airline System Bhd and Singapore Airlines.