Singapore open its skies

By Y. Sulaiman l eTN Asia
The Singapore government has announced it is ready to open up its skies to the region’s low-cost carriers by extending its air services agreement with Malaysia in a policy move to expand air services in the region. “AirAsia can now land directly at Changi Airport,” said Trade and Industry Minister Lee Yi Shyan told reporters at a business forum in Kuala Lumpur.

He, however, declined to confirm if approval has been granted to the region’s biggest low-cost carrier AirAsia to start its Singapore routes. "The transport ministry of both countries will look into the details."

Airline analysts have pointed out, any apparent gains from the Singapore landing rights will be at the loss of its almost monopoly in Malaysia’s domestic sector flights. The long standoff between AirAsia and the Singapore aviation authorities led to AirAsia shifting its focus to open other routes in the region.

Beginning August 1, AirAsia will start service on some 99 routes it is inheriting from Malaysia Airlines following the country’s domestic rationalization plan agreed by both airlines.
“Opening up its own skies will also allow Singapore-based Tiger Airways and Jetstar Asia, partly owned by the Singapore government, to pounce and tap into the potentially lucrative route into Malaysia.”
Cheaper flights into Changi will also further enhance Singapore’s plans of turning Changi Airport into the region’s premier airline hub due to greater availability of connecting flights to other destinations.  
“The tourism sector has benefited greatly from the economic spin-offs brought by the emergence of low cost carriers in the Asian region," Lee said.  "If you allow low cost carries to come in, it’ll help the people to connect. We like to see more people moving back and forth."

“If both governments agree to expand the air services agreement we will be able to put more flights on both sides.”
The low cost carriers have built their business plan on faster turn-around time, flying to routes within a two hours radius flying time.

July 5, 2006   Posted in: Singapore