SIA may drop KL-S’pore route

KUALA LUMPUR: The emergence of low-cost airlines on the Kuala Lumpur-Singapore route has eroded the market of traditional airlines, with Singapore Airlines  expected to either reduce capacity or pull out from the route.According to an industry source, SIA could also hand over its capacity to  Silk Air, just like it did for the Penang route.  Budget competitors on the route include AirAsia and Tiger Airways.

An analyst  said it was not a surprise with the presence of low-cost carriers.

But he said the airline’s presence would still be felt on the route as it has a 49 per cent stake in Tiger Airways.

He noted that this could also prompt Malaysia Airlines (MAS) to undertake the same measure and allow  FireFly to take over.

However, an SIA spokesperson said the airline at this stage has no plan to withdraw from the Kuala Lumpur-Singapore route. — Bernama

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