AirAsia has accused Malaysia Airlines of jeopardising the nation's "low-cost" hub status by stalling on opening up the lucrative Singapore-Kuala Lumpur route, reports said Wednesday.

AirAsia's founder Tony Fernandes said that with Singapore indicating it wants to open the sector to competition ahead of a Jan 1, 2009 deadline, Malaysia Airlines (MAS) remained the only roadblock.

"The people want it, the budget airlines want it and Singapore also wants it. The only party that does not want it is MAS," he told the Star daily.

"Consumers have had enough of this," he added. "MAS has continued to operate in a monopolistic and old-fashioned way."

Fernandes said that the national carrier's refusal to open up the route, which it currently operates along with Singapore Airlines, was preventing Malaysia from becoming a true hub for the region's low-cost airline industry.

Opposed early opening

"By delaying the opening up of the route, we are losing out on the opportunity to become the largest low-cost airline hub in Asia," he told the New Straits Times.

Malaysia Airlines has opposed an early opening of the money-spinning KL-Singapore leg, saying that it needs more time to carry out a turnaround plan aimed at restoring it to profitability.

Departing from Singapore, a round-trip ticket on the route, which takes less than an hour, costs around S$450 (US$298) including taxes. AirAsia is proposing one-way tickets from US$60.

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.