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.