Wednesday, September 06, 2006  

Singapore-KL Route: Open it up already

Singapore’s efforts to get access for Singapore Airlines to fly Australia-US routes seem quite churlish in light of the reticence to open up the Singapore-Kuala Lumpur route to more competition.

But things are finally happening on that front.

It's been two years since Malaysia and Singapore started entertaining the idea of revising their 34-year-old bilateral air service agreement.

This means the countries' national carriers – Malaysia Airlines and Singapore Airlines – would lose their duopoly.

Malaysia set up a committee last month to decide on the feasibility of such an agreement ahead of ASEAN's Open Sky Agreement, which states that airlines of member countries can operate unlimited flights between their capital cities by 2008.

While air agreements do not require the consent of national carriers, they are usually consulted before deals are sealed.

But if the national airlines have a lot of clout, their interests are sometimes put before the countries'.

Channel NewsAsia quoted Malaysian Transport Minister Chan Kong Choy as saying, “We believe the further liberalisation of aviation links actually benefits the two countries in tourism, trade and investment. Whether you like it or not, according to this ASEAN aviation roadmap, we are going to open up.”

So let's get down to business. Is this going to hurt SIA or not?

Personally, I think it is going to hurt MAS more than SIA because it will be difficult to turn around RM1.3 bln of losses reported last year without this profitable route.

Given the 30minute flight time and lack of service, paying S$425 for a round trip ticket is pretty extortionate.

It's no wonder AirAsia head Tony Fernandes wants a piece of the pie, and so does Tiger Airways.

This is the most expensive sector to fly in the world and together the airlines operate more than 200 flights a week!

SIA says this doesn't mean it has to give away flights and that it's simply about increasing frequency.

Well, if they think they're going to be able to keep their regulars away from budget airlines once they enter the picture, they're dead wrong.

Regulars were only regulars because they didn't have much of a choice.

I'd rather be loyal to my pocket, and go for something cheaper, even if it means the flight attendant doesn't offer me anything to drink for 30 minutes.

Serene Lim

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