SINGAPORE: One of the most contentious issues challenging low cost carriers in South East Asia – restricted air traffic rights between Singapore and Malaysia – edged a little closer to a resolution this week.
The Transport Ministries of Singapore and Malaysia have agreed in principle to work towards expanding air connectivity between both countries although no agreement is likely this year.
“Given the current good level of bilateral ties and economic co-operation, both sides agreed in principle to work towards expanding the connectivity between Singapore and Malaysia,” the Singapore Ministry of Transport said in a statement.
Significantly, the statement made no reference as to when the expansion could be implemented.
Currently, Singapore Airlines and Malaysian Airlines operate the majority of the scheduled flights on the lucrative route under a shuttle service arrangement since 1982.
Any change to allow carriers other than SIA and MAS to operate on the Singapore-Kuala Lumpur route would require a change in air service agreements.
Budget airlines such as Malaysia’s AirAsia and Singapore’s Tiger Airways are keen to operate on the route and want it liberalised as soon as possible.
MAS however wants the government to stick to the Asean roadmap on the “open sky” policy timeline of 2008 and not liberalise the sector ahead of schedule.
