The restrictive Malaysia-Singapore market finally looks set to be liberalised, with transport officials from both countries promising to negotiate changes to allow for more airline services. Transport ministers from the two countries met in February and promised they will meet again soon to conclude a new air services agreement.

Malaysia and Singapore have one of the most restrictive air services agreements in Asia and their bilateral was last reviewed in 1980. Low-cost carriers from the two sides have been seeking to operate between the two countries and Singapore has said it is in favour of opening up the agreement to allow for more airline services.

Malaysian authorities previously said they wanted to wait until December 2008, when the first elements of a multilateral "open skies" accord are due to take effect between 10 Association of Southeast Asian Nations members.

Source: Airline Business