Air travelers who have long complained about pricey fares on the Singapore-Kuala Lumpur route will finally get some relief. From February 1st, 2007 at least one low-cost carrier from each side will be allowed to operate two daily flights.
All restrictions on this popular route will be lifted on Dec 1st, 2008, to allow airlines on both sides to fly as often as they want between the two cities.
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.
In less tightly-regulated markets like the Singapore-Bangkok one, for example, travelers pay about $200 for an all-inclusive return fare.
Tiger Airways and Jetstar Asia are the contenders as far as the Singapore rights are concerned.
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 has expressed its desire to operate on this route as well. Group chief executive officer Tony Davis said 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 liberalization, he said.