Early opening of KL air route 'will benefit Singapore more'

The Straits Times, February 28, 2007


PETALING JAYA - SINGAPORE will benefit more if the lucrative Kuala Lumpur-Singapore flight route is opened up ahead of the road map for open skies in Asean, said Malaysia Airlines (MAS) managing director Idris Jala.

This is because of the disparity in flight frequencies between Singapore's Changi Airport and the Kuala Lumpur International Airport (KLIA), he said.

'If you open it (the route) earlier, indications are that we feel that Singapore will win because Changi has 4,000 flights on a weekly basis as opposed to KLIA's 2,000,' Mr Idris told reporters after announcing the national carrier's 2006 financial results on Monday.

Asean countries have agreed to open up air links between member countries by 2008.

Currently, the Kuala Lumpur-Singapore route is dominated by MAS and Singapore Airlines.

Mr Idris also confirmed that the airline was planning a new operation based in Penang after a report said it would launch a venture there.

Asked if the carrier was planning to launch a new airline, he replied: 'I suppose it would be that.'

On Monday, the New Straits Times reported that MAS was planning a new operation from Penang using two Fokker 50s owned by the carrier's parent company, Penerbangan Malaysia.

It said Penang would serve as a hub for the airline to ply domestic routes in northern Malaysia, as well as regional holiday destinations such as Medan in Indonesia and Phuket in Thailand.

The airline said on Monday that it posted a RM136.4 million (S$60 million) net loss for the 2006 financial year, a better-than-expected result after undergoing major restructuring.

Losses at the state-owned national carrier were down from the RM1.14 billion reported for 2005.

The airline attributed its performance last year to a marked increase in passenger revenue and cost reductions.

BERNAMA, AGENCE FRANCE-PRESSE