Malaysian Government says Jetstar eligible for Kuala Lumpur-Singapore route
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South Pacific,
Jetstar Asia
(XFN Asia) Jetstar Asia Airways is reportedly eligible to operate the Kuala Lumpur-Singapore route under the newly liberalised air services agreement between Malaysia and Australia.
Earlier, a newspaper quoted Malaysian Transport Minister, Chan Kong Choy, as saying that Jetstar may be barred from the route by a clause in the air services agreement.
“[Jetstar] is majority controlled by Singaporean investors, and under the agreement, budget carriers nominated by the Singapore government are allowed to fly the route,” an official of the Transport Ministry stated. “This is because if it decides to fly from Australia to [Kuala Lumpur International Airport] through Singapore, it is allowed to do so under the 'fifth freedom' right”.
Singapore investors, including state-linked investment company Temasek Holdings, own 51% of Jetstar. The rest is held by Australia's Qantas, which also manages the LCC.
Last month Jetstar received approval from the Singapore Government to operate the route from 01-Feb-08.
Subsequently, Jetstar advertised promotional fares of 1.88 ringgit (USD0.60), plus taxes and surcharges, but stated that the flights were still subject to regulatory approval.
Singapore also granted Singapore's Tiger Airways the right to operate the route from Feb-08.
Malaysia has proposed Kuala Lumpur-based AirAsia, the region's largest LCC.
For the past 35 years Malaysia Airlines and Singapore Airlines have had a profitable stranglehold on the Kuala Lumpur-Singapore route.
Date posted: 10-Jan-08.
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Malaysian Government says Jetstar eligible for Kuala Lumpur-Singapore route 
