Malaysia PM says to open up Singapore-KL air route

KUALA LUMPUR, Oct 25 (Reuters) Malaysia has decided to open up the Singapore-Kuala Lumpur air route to competition, Prime Minister Abdullah Ahmad Badawi said today.

''We have made a decision,'' he said when asked about reports that cabinet had decided in-principle to allow low-cost carrier AirAsia Bhd to fly from Kuala Lumpur to Singapore.

Pressed if this meant the Singapore-Kuala Lumpur route was being opened up, he told reporters: ''Yes.'' The lucrative route is currently shared between national flag carriers Malaysian Airline System Bhd and Singapore Airlines .

REUTERS SKB HS0936