KUALA LUMPUR, Malaysia (AP) -- Malaysia Airlines has warned the government that the country will lose out to Singapore if plans to liberalize air services between the two countries are accelerated, reports said Thursday.

The flag carrier is worried that opening up the lucrative Malaysia-Singapore by the end of 2008, a year ahead of schedule, could hurt its business turnaround plan, the New Straits Times said.

"The liberalization of air travel should not be brought forward," Malaysia Airlines' managing director Idris Jala was quoted as saying. "We have agreed on the timeline and it is important to keep it."

A 34-year-old air services agreement between the two countries has ensured that only flag carriers Malaysia Airlines and Singapore Airlines fly the highly protected route, operating more than 200 flights a week between the two cities.

If the air corridor is opened up, it would vastly benefit Singapore's budget airline Tiger Airways and Malaysia's cut price carrier AirAsia, which have both been asking for the right to fly the route, Asia's fourth-busiest.

The Star said Idris warned such a move would benefit Singapore more than Malaysia.

"Singapore would be the winner as the local airlines are not ready to operate in a fully liberalized environment. We need more time," he said in the report.

Idris couldn't be reached for further details. Other airline officials declined to comment.

Transport ministers from the two countries earlier this year said they would work toward opening up the Malaysia-Singapore route to full competition among their airlines' by the end of 2008.

Singapore has said it is ready to expand its air services agreement to boost connectivity between Kuala Lumpur and Singapore. Malaysia Airlines, which aims to return to the black this year under its turnaround plan, opposes any early liberalization of air travel.