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May 17, 2008

MAS, SIA to end shuttle deal

Malaysian Airline System (MAS) and Singapore Airlines (SIA) will scrap from June a deal that allows passengers to go on walk-in flights under a shared shuttle service, Reuters reported.

But the termination of the 25-year old shuttle agreement, on a route that is the one of the most profitable for Malaysian Airlines, will not cut frequencies or the variety of fares available on the route, the flag carriers said in a statement.

Under the deal, the two carriers charge passengers who turned up at the airport on standby for the next flights for a common fare.

"The progressive deregulation of the Singapore-Kuala Lumpur route and the ever-increasing use of the Internet for a variety of transactions such as booking of tickets and check-in (even at the last minute), has changed the travel landscape, removing the need for a shuttle service," the statement added.

The route is also being taken up by budget carriers such as Air Asia , despite strong objections by flag carriers.

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