By Karamjit Kaur, Aviation Correspondent

TRAVELLERS can look forward to better deals with new low-cost flights between Singapore and Indonesia ready for take-off.

To celebrate its much-awaited entry into the market, Indonesia AirAsia - an associate of the Malaysian budget carrier - will launch four new routes on the same day. From March 24, it will start twice-daily services between Singapore and Jakarta; and once a day to Bali, Bandung and Yogyakarta.

Singapore's Tiger Airways will launch daily services to Jakarta from March 29. The airline has also been given rights to fly to Bali.

On Sunday, AirAsia ended a week-long promotion; giving away more than 50,000 free seats. Taxes and other charges cost more than $70 for a return trip. Tiger's sale started last Friday. All-inclusive fares are going for $76.

The launch of the new routes is significant for the two carriers which had, before this, been barred from entering the market. In 2004, Indonesia imposed a blanket ban on budget carriers - a move seen as a way to protect the country's fledging carriers, including its national airline, Garuda.

In August last year, AirAsia was given the green light to operate between Singapore and Pekanbaru in Sumatra. The lifting of the restrictions is part of a wider move towards air liberalisation in the region.

Tiger's managing director Rosalynn Tay welcomed the opening of the market which, she said, would provide more options for consumers.

The boost in flight numbers and attractive fares are expected to further stimulate demand in what is already one of the region's busiest air travel markets.

According to official data, visitor arrivals from Indonesia hit 1.77 million last year. Although it was a 10 per cent drop from 2007, Indonesia remains the top contributor of arrivals to Singapore.

Despite the economic slowdown, AirAsia's regional commercial head, Ms Kathleeen Tan, expects demand for Singapore-Indonesia flights to remain strong.

At a media event yesterday to celebrate the launch of the airline's new routes, she said: 'We are very upbeat about prospects in this market. People still want to fly and if you give them low fares, they will fly.'

The airline expects to fill seven out of 10 seats in the first few months of operations, and eventually take this to more than 80 per cent, she said.

AirAsia has ambitious plans and is eyeing up to five daily flights between Singapore and Bali.

Ms Tan said: 'We fly five times a day between Kuala Lumpur and Bali and still manage to fill our planes.'

With the new services, the AirAsia family - the main carrier in Malaysia, Indonesia AirAsia, as well as Thai AirAsia - will operate 20 flights a day out of Singapore. She said: 'Although we do not park our planes here, Singapore is a virtual hub for us.'

karam@sph.com.sg

This article was first published in The Straits Times.

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