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Singapore says 'still unable' to OK AWAIR flights

| Source: DJ

Singapore says 'still unable' to OK AWAIR flights

Dow Jones, Singapore

The Singapore air authority early on Friday said it still can't approve Indonesian low cost carrier PT AWAIR's application to fly to Singapore as Indonesia's restriction on foreign LCCs remains in place.

"The Civil Aviation Authority of Singapore is still unable to approve AWAIR's proposed Jakarta-Singapore operations as Indonesia's low cost carrier restriction that affects carriers like AWAIR, Tiger Airways and Jetstar Asia is still in place," a spokeswoman for the industry regulator said.

"This issue will be further discussed between the authorities of Singapore and Indonesia in due course," she added.

Another Indonesian airline, Adam Air, however has been given the green light by CAAS.

"Based on the operating model provided by Adam Air, we do not consider the airline a low cost carrier. We approved its application to operate from Jakarta to Singapore on Oct. 5, 2005," the CAAS spokeswoman said.

"Adam Air will operate a daily Jakarta-Singapore service from Changi Airport Terminal 1 and intends to increase to three daily services," she added.

AWAIR -- an associate of Malaysia's AirAsia Bhd. -- applied to ply the Singapore-Jakarta route early this year but failed to get approval from the CAAS.

The Indonesian LCC hasn't pursued the matter since.

Indonesia at that time banned foreign LCCs from flying to Jakarta, Bali, Medan and Surabaya in what analysts said was a move to protect national carrier PT Garuda Indonesia and other local airlines.

Indonesia's move affected the plans of two Singapore-based LCCs -- Singapore Airlines associate Tiger Airways and Qantas Airways' associate Jetstar Asia.

Tiger had applied for landing rights to Jakarta and Medan while Jetstar Asia had applied to fly to Jakarta and Surabaya.

However, local media reported that the Indonesian government has denied that it is restricting foreign budget airlines from flying to the four major cities in the country, asking the airlines to first make use of the landing rights for other cities that have already been issued.

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