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SINGAPORE on Wednesday welcomed Indonesia's possible move to liberalise air travel between the two countries ahead of a December deadline to lift restrictions on flights among the Asean capitals.
Transport Minister Raymond Lim said this would be 'mutually beneficial' to both countries, paving the way for budget carriers to grab a share of lucrative routes.
Indonesian Transport Minister Jusman Syafii Dijama on Tuesday said here that Jakarta is considering lifting a ban on budget flights to key desinations such as Jakarta - if Singapore reciprocates and allows more Indonesian low-cost carriers to fly to Changi Airport.
Responding to this, Mr Lim told reporters on Wednesday after opening the Iata Asia Pacific regional office: 'We will take him on his word, and our officials will be following up on this with their Indonesian counterparts.'
Currently, Valuair, which is owned and operated by Orangestar Holdings - also the owner of Jetstar Asia - is the only Singapore low-cost carrier that flies to Jakarta.
It started operations to the Indonesian capital before a blanket ban on budget flights was imposed in 2004, a move seen as protecting the country's fledging carriers.
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