Malaysia streamlines local flight routes

Malaysia's government unveiled a plan on Monday to streamline its domestic routes, giving roles to state-controlled flag carrier Malaysian Airline System Bhd and low-cost airline AirAsia Bhd.
Under the plan, Malaysian Airline will operate 19 premier local routes, classified as such because they support business users and offer international connections, while AirAsia will handle the remainder, Prime Minister Abdullah Ahmad Badawi said in a statement on his official Web site.
The two carriers will be given the flexibility to determine passenger capacity, fare ratios and flight frequencies, but the government will not provide either with any financial subsidies. AirAsia will, however, be given financial assistance to operate rural air services in its flights to the eastern Malaysian states of Sabah and Sarawak, the statement added.