The lucrative air route between Malaysia and Singapore is unlikely to open up before the end of 2008, Deputy Prime Minister Najib Abdul Razak said today.

Officials from the two neighbours held talks earlier this month to discuss transport links, including liberalising the air route, but Najib told reporters there would be no immediate changes to the route.

"It is not likely to be brought forward," he said.

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

"We have our own reasons" for not wanting more carriers on the route before the Asean deadline, Najib said at a ceremony where budget carrier Air Asia signed an agreement with a local company.

AirAsia optimistic

However, AirAsia chief executive Tony Fernandes told reporters that the budget carrier remained optimistic that route would be opened up earlier.

"I continue to be optimistic. I had many no's when AirAsia was started five years ago. The only reason why we cannot fly to Singapore is Malaysia Airlines. It is the pressure put on (the government) by Malaysia Airlines," he said.

"Malaysia Airlines will not disintegrate if we fly to Singapore," he added.

Malaysian-based AirAsia has been among the most vocal in campaigning for access to the Singapore-Kuala Lumpur route dominated by Singapore Airlines and Malaysia Airlines.

The two flag carriers account for 85 percent of traffic on the short sector between the two cities. A confirmed round-trip ticket departing from Singapore costs around 450 Singapore dollars (298 US) including taxes.