KL to study ways to attract more airlines: Minister

KL to study ways to attract more airlines: Minister

KUALA LUMPUR (AFP): Malaysia will study ways to attract more foreign airlines after four carriers stopped operating flights to the country, Transport Minister Ling Liong Sik said Sunday.

He said a special government committee would study the matter but gave no details of any possible new incentives.

Japan's All Nippon Airways said last month it would stop flying to Malaysia because it cannot make money on the route.

It was the fourth airline to announce it is stopping services since the nine-billion-ringgit (US$2.4 billion) Kuala Lumpur International Airport (KLIA) opened in June 1998.

The others are British Airways, Qantas, Lufthansa. The pullouts were a blow to efforts to promote the futuristic airport as a regional hub.

Ling said several foreign airlines, including Emirates Airlines and Lauda Air, planned to increase flights to Kuala Lumpur.

He said Cathay Pacific had increased its flights to Malaysia from 14 to 21 per week. National carrier Malaysia Airlines had also obtained four additional flights from London, bringing the total number of flights between London and KLIA to 10 per week.

"I believe that within the next three or four months, there is a big possibility of us securing even more flights (to London), that is 21 per week or three daily," he said.

Ling said airlines which pulled out cited commercial reasons after incurring losses from the depreciation in the value of the ringgit.

The local currency was pegged at 3.80 to the dollar in September 1998 compared to 2.5 before the East Asian economic crisis.

Ling said All Nippon Airways hoped to resume operations in the near future.