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SINGAPORE : In one of the most long-awaited announcements, low cost carriers (LCCS) have finally been given the green light to operate the lucrative Singapore-Kuala Lumpur route from 1st February next year.
However these will initially be limited to four flights daily - two from each side.
For over 30 years, the national carriers of both countries have monopolised what has become known as one of the most protected routes in Asia.
Passengers pay about S$400 return for a flight that only lasts about 45 minutes.
That should change now - for the better.
For the first time, budget carriers who have been lobbying to ply this route for years, will be allowed to do so - though on a limited basis initially.
But by 1st December next year, there will be full liberalisation which means airlines can operate as many services as they want.
This is in line with an ASEAN initiative to free up air links between ASEAN capital cities by December next year.
The decision comes at the end of two-day talks between Singapore and Malaysian air transport officials.
The thing to watch out for now is which budget carriers get these four flights.
Although Singapore's Tiger Airways and Malaysia's AirAsia have been widely tipped to get it, both carriers face competition - AirAsia from MAS subsidiary Firefly and Tiger from Jetstar Asia.
Jetstar Asia says it plans to apply for the rights, while Tiger has reiterated its interest, saying it would offer fares comparable to coach travel.
AirAsia's Tony Fernandes said just this month he could do the return fare for about S$130.
Officials agreed to meet again in January to discuss the further expansion of air services between Singapore and other cities in Malaysia. - CNA/ch
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