The Nation, Thailand
1st Feb 2008
Singapore - Budget airlines started flying the Singapore-Kuala Lumpur route on Friday, ending more than 30 years of domination by Singapore Airlines (SIA) and Malaysia Airlines (MAS).
With the approval given by authorities late last year, the carriers pulled out all the stops for their inaugural flights, such as offering zero-dollar promotions.
Tiger Airways and Jetstar Asia based in Singapore and AirAsia from Malaysia are offering four daily flights between Changi Airport and the Kuala Lumpur International Airport.
The new service is a significant development in the history of the Association of South-East Asian Nations (Asean) airline industry, said Tony Davis, Tiger's chief executive officer.
He predicted an increase in tourism between the two destinations.
Average return fares with taxes between Singapore and Kuala Lumpur are expected to eventually stabilise between 130 Singapore dollars (90 US dollars) and 200 Singapore dollars (139 US dollars) when the promotions are no longer available, analysts said.
The national airlines which have long held a grip on the route are not resting on their laurels. SIA launched a special promotional fare of 286 Singapore dollars (195 US dollars) including taxes, a drop from its usual fare of 400 Singapore dollars (249 US dollars).//dpa
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