MALAYSIA AND SINGAPORE AGREE ON AIR SERVICES EXPANSION

KUALA LUMPUR, Oct 7 (Bernama) -- Malaysia and Singapore have agreed on
expanding the bilateral air services agreement between both countries, said Zakaria Bahari, Secretary-General of the Ministry of Transport.

The agreement was reached after officials from Malaysia and Singapore
met
for air services consultations in Singapore Monday.

He said the new agreement will give low cost carriers of both countries the
right to operate between Singapore and three cities in East Malaysia - Kota
Kinabalu, Kuching and Miri.

"With effect from Nov 1, 2008, the low cost carriers of Singapore would be
allowed to operate a total of seven flights a week to each of the above cities.
This would be increased to 14 flights a week to each city with effect from March
1, 2009," he said in a statement on Monday.

The same entitlements have been granted to the low cost airlines of
Malaysia.

Zakaria, who led the Malaysian delegation in the consultations said it is a
significant step forward for Singapore and Malaysia, coming shortly after both
countries agreed to fully liberalise the Singapore-Kuala Lumpur sector from
Dec 1, 2008.

The new agreement will help address the high demand for air travel between
Singapore and East Malaysia.

He said officials from both countries agreed to meet again during the first
quarter of 2009 to discuss the further expansion of air services between
Singapore and Malaysia.

Currently, Silkair and Malaysian Airlines operate eight and 10 flights
respectively to Kota Kinabalu and seven flights each to Kuching from Singapore.

-- BERNAMA