Malaysia today voiced caution over opening up an air route to Singapore this year, but admitted air travel would benefit if budget carriers plied the route dominated by national carriers.

Transport Minister Chan Kong Choy said liberalising the lucrative route would encourage air travel, but flagged competing interests when asked if Malaysia was in favour of opening the route this year.

"Yes, it will (encourage air travel) ... But the interest of many other parties should be taken into consideration, like the Kuala Lumpur International Airport. It is not so simple," Chan told reporters.

The money-spinning Kuala Lumpur to Singapore route is operated by national carriers Singapore Airlines and Malaysia Airlines, which has voiced opposition to an early opening of the route.

Singapore and Malaysia are members of the Association of Southeast Asian Nations, which has agreed to open up capital-to-capital flights by the end of 2008.

Meeting in Singapore

Chan said senior Malaysian and Singapore officials were meeting in the island republic today to discuss transport links, including the route.

Singapore's Ministry of Transport Tuesday said "the meeting would not merely focus on the opening up of the KL-Singapore air route but would also include other bilateral issues relating to transport."

Malaysia's and Singapore's flag carriers account for 85 percent of traffic on the 30-minute flight, with a confirmed round-trip ticket from Singapore costing around 450 Singapore dollars (298 dollars) including taxes.

Southeast Asia's leading budget carrier AirAsia has been among the most vocal in campaigning for access to the route, with the airline's chief Tony Fernandes offering a one-way ticket from 60 dollars.