Singapore and Malaysia confirmed the partial liberalisation of the Kuala Lumpur-Singapore air route, with four new flights to commence next year.
Malaysian Transport Minister Chan Kong Choy said the countries have agreed to allow two new flights from each side and officials will discuss the details in mid-November.
Singapore Transport Minister Raymond Lim said the text has been finalised and the countries have to go back for internal consultations. He said the countries have agreed to sign it at the earliest opportunity next year.
The route is the fourth busiest in Asia, and a 34-year-old agreement has ensured that only flag carriers Malaysia Airlines, operated by Malaysian Airline System and Singapore Airlines fly the protected route, operating more than 200 flights a week between the two cities.
Full liberalisation of air travel between Malaysia and Singapore is targeted for January 2009.
Last week, Malaysian Prime Minister Abdullah Ahmad Badawi said Malaysia will allow budget carrier AirAsia to fly the Kuala Lumpur-Singapore air route.
One Singapore budget airline will also be allowed to operate flights on the route, but it is up to the city-state to decide on which carrier.
Singapore Airlines unit Tiger Airways has formally expressed its interest in servicing the route.
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