S'pore-KL air route won't be opened up early, says Najib
Wed, May 23, 2007
The Straits Times
KUALA LUMPUR - THE lucrative air route between Kuala Lumpur and Singapore is unlikely to open up before the Asean deadline set for the end of next year, Malaysia's Deputy Prime Minister said yesterday.
Datuk Seri Najib Tun Razak said there would be no immediate changes to the route.
'It is not likely to be brought forward,' he told reporters.
Asean members, which include Singapore and Malaysia, have agreed to open up capital-to-capital flights by the end of 2008.
'We have our own reasons' for not wanting more carriers on the route before the Asean deadline, Datuk Seri Najib said at a ceremony where budget carrier Air Asia signed an agreement with a local company.
However, AirAsia chief executive Tony Fernandes said the budget carrier remained optimistic that the route would be opened up earlier.
'I continue to be optimistic. I had many no's when AirAsia was started five years ago. The only reason why we cannot fly to Singapore is Malaysia Airlines. It is the pressure put on (the government) by Malaysia Airlines,' he said.
But 'Malaysia Airlines will not disintegrate if we fly to Singapore,' he added.
Malaysian-based AirAsia has been among the most vocal in campaigning for access to the Singapore-Kuala Lumpur route, now dominated by Singapore Airlines and Malaysia Airlines.
The two flag carriers account for 85 per cent of the air traffic between the two cities.
A confirmed round-trip ticket departing from Singapore costs around S$450, with taxes.
Earlier this month, transport officials from both sides met in Singapore and agreed to work towards liberalising air links, which will boost tourism and help nudge Malaysia towards its target of 20.1 million visitors this year.
Singapore's Ministry of Transport had described the discussions as 'fruitful', and said a second meeting would be held soon.
It said: 'Given the current good level of bilateral ties and economic cooperation, both sides agreed in principle to work towards expanding the connectivity between Singapore and Malaysia.'