Tony 1 Report post Posted December 31, 2007 Got an update today, or might well be a rumour, that the open skies agreement is effective 1st Jan 2008 (i.e. tomorrow) and KUL/SIN sector will be deliberalised. Anyone else got the same news or was I hearing things? Share this post Link to post Share on other sites
KC Sim 2 Report post Posted December 31, 2007 Hi Tony, previous announcements indicated that the SIN-KUL route would only be partially liberalised with the LCCs of each country allowed a total of just two daily services. Singapore has indicated that Tiger Airways and Jetstar Asia Airways will each be permitted to operate one daily service each. From the Malaysian side, AirAsia seems to be the only operator and will consequently get two daily services. I am somewhat confused by your post . . . because if the sector is to be opened up tomorrow (1 Jan 2008), it would be no use announcing it today. No airline could logically launch services at such short notice and even if they could, such services could not be adequately marketed. Further confusion from your use of the word "deliberalised". The route is currently very regulated and is right now in the process of being liberalised. When you say "deliberalised", are you hearing news that the previous plans to liberalise the route has been reversed and will again be regulated? KC Sim Share this post Link to post Share on other sites
Tony 1 Report post Posted December 31, 2007 Hi Tony, previous announcements indicated that the SIN-KUL route would only be partially liberalised with the LCCs of each country allowed a total of just two daily services. Singapore has indicated that Tiger Airways and Jetstar Asia Airways will each be permitted to operate one daily service each. From the Malaysian side, AirAsia seems to be the only operator and will consequently get two daily services. I am somewhat confused by your post . . . because if the sector is to be opened up tomorrow (1 Jan 2008), it would be no use announcing it today. No airline could logically launch services at such short notice and even if they could, such services could not be adequately marketed. Further confusion from your use of the word "deliberalised". The route is currently very regulated and is right now in the process of being liberalised. When you say "deliberalised", are you hearing news that the previous plans to liberalise the route has been reversed and will again be regulated? KC Sim Thanks KC. What you said was exactly what confuses the heaven out of me! I was told of an "open skies in malaysia" and then the KULSIN sector being "deliberalised" tomorrow. I asked if he was sure, he said "I'm quite sure". <_ interestingly i haven heard of anything from the news mwings or airline itself. still remember last words read on open skies agreement was that mas needed to>speed up the process to gain momentum for it. Feeling much more relieved with your reassurance. Now I can enjoy my new year! Happy new year and best wishes in 2008!! Share this post Link to post Share on other sites
KC Sim 2 Report post Posted January 1, 2008 Hi Tony, there's always a lot of mis-information going around. The issue of open skies is so passionately followed by the media that as soon as something is sealed, you will find it in the news. So hearing it from an individual is often not the best way to get "news" - unless of course that individual is suitably placed in high places. The first phase of ASEAN Open Skies takes place on 1 Jan 2009 when flights between ASEAN capital cities are liberalised. This means MAS or AirAsia can fly as often between KUL and BKK (for example) as often as they want. This however does not mean that these airline can similarly fly without limit between KUL and CNX (Chiangmai). When the ASEAN Open Skies agreement is finally and fully implemented in 2015, airlines can fly any number of flights between capital / secondary cities. Ahead of the 1 Jan 2009 opening of the air lanes between capital cities, the Singaporean and Malaysian governments have been faced with increasing pressure from low cost carriers to allow them to operate on the SIN-KUL sector where fares are pegged at an artificially high level. Signs of the governments'willingness to open this route emerged with different intensity at different times and at different ends of this sector. The Malaysian government is probably faced with the need to offer a measure of protection to MAS by allowing only 4 flights per day on this route - hence the two flights per country rule. Please refrain from using the word "de-liberalised" because such a word does not exist except if the skies are liberalised and then the government reverses it decision and go back to a regulated environment. Even then, I don't think this word is the best way to describe the situation. Governments will some day have to stop offering unrealistic protection to inefficient, unprofitable and mis-managed national carriers - it is a huge drain on the people through taxes and in some countries, this also results in the people paying articificially high fares when they travel. The number of very significant Open Skies Agreement that Singapore has inked - especially with the UK and UAE - is indicative of this changing trend. The UK government was probably seen as one of the most conservative and unwilling signatory to an Open Skies Agreement. An Open Skies Agreement is only useful if the airlines of a country are strong, competitive and are in a position to take advantage of such an agreement. Signing an Open Skies without these conditions could potentially cause these airlines to lose competitive edge if foreign carriers increase the scope of their operation and overwhelm the weaker local ones. KC Sim Share this post Link to post Share on other sites
Tony 1 Report post Posted January 1, 2008 KC, Thanks for your thorough explanation. Digging a bit deeper, does that mean an open skies agreement is technically non-effective until the routes are liberalised? Share this post Link to post Share on other sites
