MAS does not oppose 'open skies' agreement

MAS does not oppose 'open skies' agreement

KUALA LUMPUR (AFP): Malaysian Airline System Bhd. (MAS) said yesterday it was not opposed to an "open skies" agreement which the government is to sign with the United States in May.

Airline senior vice-president for commercial operations Bashir Ahmad Abdul Majid said the pact was not expected to result in a sharp rise in foreign airlines wanting to fly to Kuala Lumpur, Bernama news agency said.

Malaysian Transport Minister Ling Liong Sik said last week that Kuala Lumpur would sign the pact in May after the United States agreed to include a clause promising a more liberal policy with Malaysia.

Ling said that the agreement with the United States would give Malaysian Airlines the right to fly anywhere in the United States, compared to its current right to land only in Los Angeles.

The open sky policy is expected to be implemented a year from now.

Bashir said major airlines were already flying to Kuala Lumpur and the "open skies" policy meant there would be no restrictions on the type of aircraft used, frequencies and points of operation.

He said Malaysia's national carrier could continue to grow independently and still had considerable room to expand despite stiff competition from Singapore Airlines.

Bashir said Singapore Airlines would be "a force to be reckoned with" even five years from now because of the proximity of the two countries.

"It would be nice if we can push the (Singapore) island away," he was quoted as saying in jest.

Thai International Airways and Hong Kong's Cathay Pacific were also likely to pose a strong competitive threat in the future, he said.

Malaysian Airlines, in the meantime, was enjoying higher passenger loads after additional frequencies on existing routes were secured, he added.

On the airline's 10-billion-ringgit (US$4 billion) fleet- modernization program, Bashir said the national airline would not face any problems in raising financing to purchase 25 aircraft it had ordered from Boeing, the' Seattle-based aircraft manufacturer.

Malaysian Airlines would return the lease on four aircraft besides selling 10 Boeing 737s to pay for half the fleet. The airline's stock ended flat at 6.55 ringgit ($2.62) on the local bourse Friday.