Australian Airlines has started flying non-stop from Sydney to Kota Kinabalu in Sabah, Malaysia Airports said in a statement today.

The new service, which began Sunday, is expected to provide a major tourism boost for the eastern states of Sabah, which is renowned for its diving, and Sarawak.

The move is seen as a step towards normalisation in the region's air services following the crippling effects the deadly Severe Acute Respiratory Syndrome (Sars) had on Asia's tourism industry.

It will also help assure foreigners that Malaysia is a safe place to visit, the statement said, despite travel advisories by some Western nations.

Once-a-week service

The United States, Australia and Britain have warned their citizens to exercise caution in Malaysia, especially in Sabah, because of alleged threats posed by the regional Jemaah Islamiah (JI) terrorist organisation.

The Islamic extremist group is reportedly linked to Osama bin Laden's al-Qaeda network and is accused of planning and carrying out last year's Bali bombing in neighbouring Indonesia, which killed 202 people, mainly Western tourists.

Malaysia has detained dozens of suspected JI members over the past two years.

Australian Airlines, Qantas Airways' wholly owned budget-flight subsidiary, will start by operating once-weekly services on the Sydney-Kota Kinabalu-Sydney route using Boeing 767-300s. The flight time is approximately seven hours.

Fears vanished

The move indicates that "the confidence of airlines is slowly being restored as the fear of Sars declines," Malaysia Airports said.

Sars killed hundreds of people as it swept Asia this year, hitting air travel already suffering a slump through fear of terrorism.

"The effort to encourage air travel and tourism is in full throttle and will help boost passenger movements for domestic and international destinations," Malaysia Airports said. - AFP