MORE LONG HAUL ROUTES FOR LOW COST CARRIERS

The industry is of the opinion that the government should not restrict low cost carriers, Malaysian homegrown especially, from flying to new destinations. Afterall expansion is a commercial consideration and not determined by government policy.

Datuk Seri Dr Tony Fernandes CEO of Air Asia has warned that with Singapore Airlines jumping into the long-haul budget carrier business, holding back routes for AirAsia X will only put the country at a disadvantage, despite Malaysia being the pioneer in this business.

The island-state flag carrier, Singapore Airlines Ltd has announced on Wednesday that it would establish a budget airline catering to cost-conscious travellers on longer-distance routes.

The new carrier will likely compete with Jetstar Airways, the low-cost unit of Australia's Qantas Airways Ltd, and AirAsiaX, the longer-haul unit of Malaysia's AirAsia Bhd, for routes beyond the reach of traditional low-cost airlines that don't fly for more than five hours.

"If the Malaysian government does not give the route rights, Singapore will gain advantage in building a hub because now they have a long haul (budget) airline and a short haul airline," said Fernandes, who is the Chief Executive Officer of AirAsia and founder of AirAsia X.

Hence, Malaysia Airports Holdings Bhd and the Ministry of Transport must provide the necessary support for AirAsia X to grow and not to lose out, he told reporters at the inaugural Malaysia Investor Relation Awards 2011 ceremony here Thursday.

Currently AirAsia X, the country's first long haul budget carrier is awaiting government approval for its new routes to Beijing, Shanghai, Osaka and Jeddah.