10/01: Jetstar Asia eligible to fly Singapore-Malaysia route

(Channel NewsAsia) - SINGAPORE: Jetstar Asia is in the clear to fly the Singapore-Malaysia route.

In a tale of twists and turns, reports from Malaysia on Tuesday said it may not be allowed to fly the route because of a clause in the Malaysia-Australia aviation agreement.

The Malaysian Transport Ministry clarified on Wednesday that although it has some Australian backing, the carrier can fly the route as its majority investors are from Singapore and it is a Singaporean airline.

It also noted that the carrier is a separate entity from Jetstar Australia, which is owned by Qantas.

Singapore's Transport Minister Raymond Lim, said: "I am not sure if the report was referring to Jetstar or Jetstar Asia. Jetstar Asia is a Singapore carrier and is entitled to air rights from Singapore. My understanding is that Jetstar Asia has received approval from the KL authorities in this matter."

Chong Phit Lian, CEO of Jetstar Asia, said: "I can't say for sure what is happening on the other side but we know Jetstar Asia operates under the Singapore AOC and we have been given the rights – we'll definitely fly from 1 February."