AVIATION - A deregulated Singapore-Malaysia skies opens fierce debate

TTGasia.com, Nov 2 - 8, 2007

Malaysian outbound agents find the prospects of dirt-cheap air fares between Singapore and Kuala Lumpur (KL) scary, while Singapore agents who work with budget carriers cannot wait for them to crack the route finally.Twice daily services by AirAsia and a Singapore low-cost carrier (LCC) on the Singapore-KL route could begin as early as December if Singapore agrees. Malaysia’s government gave its in-principle nod last week.This route has been monopolised by Singapore Airlines (SIA) and Malaysia Airlines (MAS), resulting in one of, if not the highest, fares in the region in relation to distance flown. Its deregulation is a real breakthrough and will have various implications for various sectors.Malaysian outbound agents argue business at Kuala Lumpur International Airport (KLIA) will suffer, likewise, tourism in Johor, Malaysia’s southern gateway.

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