Indonesia and Singapore are close to formalising a new air services agreement to allow for more flights – but low-cost carriers will be barred from key routes.
The two countries have, for months, been talking about a new air services accord, and there have been accusations of tit-for-tat protectionism from some of the countries’ airlines. In March Indonesia said it would bar foreign low-cost carriers from launching services to four of its most popular destinations: Denpasar (Bali), Jakarta, Medan and Surabaya. This scuppered plans by Singapore’s Jetstar Asia and Tiger Airways for operations to some of these cities.
Singapore has been accused of using the spat as an excuse to stop Indonesia’s Awair, which is 49%-owned by Malaysia’s AirAsia, from serving Singapore.
Source: Airline Business
