Bernice Han

To do so it will have to overhaul its image to tap into the spillover from the booming tourism market in Singapore, just a 45-minute ferry ride away.

Sticking to the basics of keeping costs as low as possible in order to sell the market's lowest-priced tickets is the key to the carrier's success, says Tony Fernandes.

Southeast Asia's low-cost airline sector is set to continue its phenomenal growth with the opening of the region's first dedicated budget terminals in Singapore and Malaysia.

Analysts say there is a perceptible shift in KL dealings with Singapore at the higher level under Prime Minister Abdullah's leadership.

Prime Minister Abdullah Ahmad Badawi says that both nations had to think "out of the box" to find a solution to their many unresolved issues.

Asia needs to air its corporate dirty linen in public, even if that means losing face, if it wants to clean up the standard of its business practices, according to prominent Asia watcher Michael Backman.