Malaysian Air, SIA say end Singapore-KL shuttle deal

KUALA LUMPUR, May 16 (Reuters) - Malaysian Airline System (MASM.KL) and Singapore Airlines (SIAL.SI) will scrap from June a deal that allows passengers to go on walk-in flights under a shared shuttle service, the flag carriers said on Friday.

But the termination of the 25-year old shuttle agreement, on a route that is the one of the most profitable for Malaysian Airlines, will not cut frequencies or the variety of fares available on the route, they said in a statement.

Under the deal, the two carriers charge passengers who turned up at the airport on standby for the next flights for a common fare.

"The progressive deregulation of the Singapore-Kuala Lumpur route and the ever-increasing use of the Internet for a variety of transactions such as booking of tickets and check-in (even at the last minute), has changed the travel landscape, removing the need for a shuttle service," the statement added.

The route is also being taken up by budget carriers such as Air Asia (AIRA.KL), despite strong objections by flag carriers. (Reporting by Soo Ai Peng; Editing by Ramthan Hussain)