The government is studying the possibility of allowing budget carriers AirAsia and Singapore-based Tiger Airways to fly the lucrative Kuala Lumpur-Singapore route, a report said yesterday.

Transport Minister Chan Kong Choy said a committee had been set up to study the pros and cons of allowing the two low-cost carriers to fly the route.

"The committee has two weeks to make recommendations on the feasibility and impact of such a move," he was quoted as saying by the New Sunday Times newspaper.

Chan said the committee was set up last week and was headed by the ministry's secretary-general Muhamad Safaruddin Muhamad Sidek.

Singapore-backed airlines

Malaysia's AirAsia, Asia's largest and most profitable low cost carrier had expressed interest in flying to Singapore at a much lower fare.

Tiger Airways has the backing of Singapore Airlines, which owns 49 percent of the carrier. State-linked Singapore investment company Temasek Holdings is also a key shareholder with 11 percent.

The near hour-long route is currently monopolised by national carriers Malaysia Airlines and Singapore Airlines.