Malaysian budget carrier AirAsia said today it had made a bid to ply the lucrative Kuala Lumpur-Singapore route and that it expected to commence flights by early 2007.

Chief executive Tony Fernandes said the airline was planning for 20 flights daily to start "within the next six months" on the near hour-long route, long dominated by the national airlines of both countries.

"AirAsia has applied for the right to fly to Singapore recently," Fernandes told reporters after briefly meeting Singapore Transport Minister Raymond Lim, who is on a visit to Malaysia.

"The minister is very keen for us to fly in. They are impressed with how we have grown," he said, when asked about Singapore's response to the bid.

Lim, who earlier toured Malaysia's low-cost carrier terminal in Sepang, south of Kuala Lumpur, was heard issuing encouraging words to Fernandes.

"We would very much like you to fly to Singapore," he told the AirAsia chief.

Despite AirAsia's enthusiasm, Fernandes said the airline had yet to negotiate desirable airport and landing charges in Singapore in order to make the operation successful.

The rates at Singapore's low-cost carrier terminal were currently "not attractive", he said.

'Our competition is cost'

"We can do 20 flights but the cost must be right," he said.

"Our competition is cost. We are worried about cost. We are not worried about Tiger Airways," he said, referring to the Singapore-based budget carrier.

Fernandes said he had also discussed the prickly issue of opening up a land route from Senai airport in Malaysia's southern Johor state to neighbouring Singapore with Lim.

Singapore's refusal to allow AirAsia to transport passengers from Senai by bus or taxi into the republic has been a long-running source of tension.

"I've put across some of my frustrations," said Fernandes, adding it was a "nightmare" to get a taxi from Johor to Singapore.

"Why is it a problem for a bus service between Singapore and Johor?" he said.

"If you open up all modes of transport, it will bring benefits to both countries."

AirAsia was launched as a budget carrier in December 2001 with just two aircraft. It now offers more than 100 domestic and international flights to Malaysia, Thailand, Indonesia, Singapore, Cambodia, Vietnam and the Philippines.