Liberalisation of Air Links with Malaysia

Interesting article from channelnewsasia.com below.

I'm still not too hot about budget airlines. It annoys me that I can almost never get the super discounted fares whenever I do a search. And even when I do get something reasonably close to the lowest of the low, the various added taxes usually end up dwarfing the fares and the whole thing doesn't look like such a good deal after all.

That said, when the budget airlines start flying to the promised destinations in Malaysia, I'll be there again clicking on their websites. My baby car will still be driving me to KL but maybe the budget airlines can bring me to Langkawi, Kuching and Kota Kinabalu. Now if only the hotels offered cheaper rates too ...

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Budget carriers based in Singapore are eagerly awaiting the liberalisation of air links with Malaysia now that the two countries have agreed, in principle, to open up the current aviation agreement.

Though details of the proposed liberalisation have yet to be announced, budget carriers are already eyeing certain destinations in Malaysia.

Budget carriers, like Tiger Airways and Jetstar, see the opening up of the aviation playing field as a positive step in the right direction.

Flying from Singapore into Malaysian cities would mean a huge boost not just in tourism, but also in business links.

Chong Phit Lian, CEO, Jetstar Asia Airways, said: "Once it's opened up, it'll open a lot more visitation, that's for sure. What you used to think twice to do, you'll do it faster and you'll probably invite more relatives and friends to visit you in Singapore. There'll be a great surge in interest for family, friends and for short holidays. If you do a rough estimate based on capacity, it will probably be two or three times more."

Under a 34-year-old agreement, national carriers from both sides have monopolised the Singapore-KL route, with more than 200 flights a week.

And with budget carriers entering the scene, it will create a very competitive environment in terms of ticket prices.

Besides Peninsular Malaysia, destinations further north and into East Malaysia could become more attractive to travellers.

"If it opens up and we're given a chance to choose, we definitely would like to go to KL, Ipoh, Penang, Kota Kinabalu, Kuching and beyond, typically. We're also working out with Malaysian travel agencies to understand their needs and if there's a demand. If we can serve the market, we'll definitely consider those routes," said Ms Chong.

Tony Davis, CEO, Tiger Airways, said: "Ultimately, the consumers will decide how big the market becomes. There's a big increase in passenger services when we enter the market. We expect that to happen in Malaysia. The market is important to us. It's close to Singapore and it suits our model of high frequency services. With a budget terminal here, we can offer low fares. There'll be a lot of demand."

No matter where the destinations are going to be, two things are certain – budget carriers said it would be cheaper to fly to Malaysia from Singapore and there would be more options for travellers.