Low-cost S'pore-KL flights from Feb 1Straits Times, The (Singapore)
Prime News
November 24, 2007
Author: Karamjit Kaur, Aviation CorrespondentAIR travellers who have long complained about pricey fares on the Singapore-Kuala Lumpur route will finally get some relief.
From Feb 1, at least one low-cost carrier from each side will be allowed to operate two daily flights - a total of four extra services a day.
All restrictions on the lucrative sector will be lifted on Dec 1, 2008, to allow airlines on both sides of the Causeway to fly as often as they want between the two points.
The liberalisation of one of Asia's most restricted air routes is in line with an Asean initiative to free up air links between capital cities of the 10-member bloc by December next year.
The decision to partially free up the Singapore-KL sector was announced by the Ministry of Transport (MOT) yesterday, at the end of two days of bilateral talks here.
MOT said in a statement: 'This is a positive development in our aviation relations as low-cost carriers will operate on this sector for the first time.'
Transport officials on both sides will meet again in January to discuss how air links between Singapore and other Malaysian cities can be further liberalised.
The Singapore-Malaysia air services pact was last expanded in 1980. A separate commercial deal between the two national carriers, which currently dominate the Singapore-KL sector, allows them to set fares, plan schedules and split revenues equally.
Singapore Airlines and Malaysia Airlines (MAS) operate about 85 per cent of the over 200 flights a week, charging about $400 for a return flight that lasts 45 minutes each way.
The remainder goes to a handful of other carriers that fly via Singapore to Kuala Lumpur under 'fifth freedom' rights, which allow foreign airlines to pick up passengers in transit, as negotiated by their respective countries. These include Japan Airlines and Air Mauritius.
In less tightly-regulated markets like the Singapore-Bangkok one, for example, travellers pay about $200 for an all-inclusive return fare.
Pressure had mounted in the past few years in Singapore and Malaysia for more competition, and low-cost carriers promised cuts to Singapore-KL fares by more than half.
But a breakthrough only came earlier this month, when Malaysia proposed to Singapore that low-cost carriers be allowed to operate a limited number of services.
Malaysian Transport Minister Chan Kong Choy proposed this to his Singapore counterpart Raymond Lim when they met on the sidelines of the 13th Asean Transport Ministers Meeting here.
Tiger Airways and Jetstar Asia are the contenders as far as the Singapore rights are concerned.
Singapore's Air Traffic Rights Committee will evaluate applications submitted to it.
The committee, headed by MOT's permanent secretary, includes senior representatives from various government agencies.
Making a pitch for her airline, Jetstar chief executive officer Chong Phit Lian said: 'Our extensive network, and our links with sister carriers in Australia, allow us to offer our passengers not just a point-to-point service but a whole range of options and choices.' Jetstar is 49 per cent owned by Australia's Qantas.
Singapore's Tiger Airways is raring to go too. Group chief executive officer Tony Davis told The Straits Times recently that even if the airline got just one or two flights a day, it would be a good start. Early access would allow it to gear up for full market liberalisation, he said.
[email protected]Copyright, 2007, Singapore Press Holdings Limited