SIA, MAS to end agreement soon?
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The national airlines of Singapore and Malaysia could soon end a 30-year-old bilateral agreement that has given them a near-monopoly of the lucrative Singapore-Kuala Lumpur route.
The route will be opened to low-cost carriers from February 1, with budget airlines AirAsia, Tiger Airways and Jetstar Asia starting a total of four flights per day. They would be free to operate as many flights as they want when the route is fully liberalised in December, ending the monopoly by Singapore Airlines and Malaysia Airline, Reuters reported.
“The opening of the market means we will evaluate the agreements which have their legacy in another time. We will have some discussions with Malaysia Airlines in due course,” SIA spokesman Stephen Forshaw told The Straits Times.
Under the current agreement, both airlines split revenues equally, and charge the same S$400 (US$280) fare for a return ticket.
SIA operates 42 flights weekly on the Singapore-Kuala Lumpur route, and Malaysia Airline operates 50 flights.
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