Malaysia's Decision To Open Up KL-Singapore Air Services Hailed

By Jackson SawatanSINGAPORE, Oct 31 (Bernama) -- Aviation industry leaders meeting here for their annual outlook summit have hailed a recent decision by Malaysia to partially open up the Kuala Lumpur-Singapore air services.They said the move by Malaysia was a typical leadership action ahead of the December 2008 Asean self-imposed deadline for capital city liberalisation."The announcement that Malaysia has finally agreed to open up the Kuala Lumpur-Singapore is a typical leadership action," said Peter Harbison, executive chairman of the Sydney-based Centre for Asia Pacific Aviation.Last week, Malaysia agreed to give budget airline AirAsia limited access to the lucrative route now duopolised by Malaysia Airlines and Singapore Airlines.Transport officials from both country are scheduled to meet here this week on the sidelines of the 13th Asean Transport Ministers' Meeting to further discuss the issue.Speaking on the first day of the two-day Asia Pacific & Middle East Aviation Outlook Summit here, Harbison also urged governments to move towards deregulation, especially of the low-cost sector."The industry can point the way -- and it must," he said. "But the road must be built by the regulators."Harbison told Bernama later that the decision by Malaysia to open up the protected route, would pressure the market in the region to open up."If you can pick one route in the region, this one (Kuala Lumpur-Singapore air route) is the most protected. When it becomes open, it has an influence on everybody to open up because everybody would then think that 'even Malaysia is opening up'," he said.-- BERNAMA