KL-Singapore eludes low-cost airlines

LOW-cost airlines in Malaysia and Singapore are eyeing what could potentially be one of their most lucrative routes, between Kuala Lumpur and Singapore. The only problem is that flying the highly travelled and short 50-minute sector – which analysts say is ideally suited for budget airline operations– may have to remain a pipe dream. 

The protectionist policies of both the Malaysian and Singaporean Governments that restrict competition on the route – one of Asia’s busiest – to a virtual monopoly whose returns are shared between the two incumbent flag carriers Malaysia Airlines and Singapore Airlines, means that the now commonly available bargain fares sold by AirAsia within Malaysia, or tickets of one Singapore dollar like that offered by Tiger Airways between Singapore and Bangkok, would probably never be seen between the two cities.