Low-cost S'pore-KL
flights from Feb 1
Straits Times, The
(Singapore)
Prime News
November 24, 2007
Author: Karamjit Kaur, Aviation Correspondent
AIR 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.
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Copyright, 2007, Singapore Press Holdings Limited
