The East Timorese government has approved the signing of an agreement with the Malaysian Government on air transport services between the two countries. The objective, according to the government, is the “normalization of the air transport service in the country” — news that arrives amid significant controversy in the aviation sector.
Government Agreement With Malaysia
In a statement, the government explained that it had analysed “alternatives and possible agreements for international air connections”, presented by the Minister of Transport and Communications, José Agustinho da Silva. The executive granted him “full powers” for the signing of the memorandum with Malaysia, though no further details were disclosed.
Context: Rising Fares and the Loss of the Singapore Route
The announcement comes at a turbulent time for aviation in Timor-Leste:
- Ticket prices on the Dili–Bali connection have risen sharply compared to previous years.
- Air Timor announced the end of its Dili–Singapore route, with the last flight operating on 30 March.
- Singapore Airlines declined to renew its air charter contract with Air Timor, citing a “reintegration” of its subsidiary SilkAir into the parent company and the expansion of its own regular services.
Impact on Cargo and Business
The closure of the Singapore route affects more than just passenger travel. Key cargo categories normally transported on Singapore–Dili flights include:
- Pharmaceuticals
- Auto parts
- Aviation supplies
- General cargo
Several companies operating in Timor-Leste, including Heineken — the only international manufacturing operation in the country — wrote to the government requesting intervention to prevent the route from being discontinued.
Licensing Uncertainty and Air Timor’s Status
Behind the scenes, a prolonged period of regulatory uncertainty had complicated the situation. The Enterprise Verification Service (SERVE) had been slow to issue a renewed operating licence for Air Timor, creating indecision that stretched from late the previous year into February. Singapore Airlines had initially confirmed its intention to renew the charter contract for another year, subject to price revision, but ultimately reversed course once SERVE’s decision was delayed.
Government Position on Pricing
When asked about high fares on the Bali connection, Prime Minister Taur Matan Ruak acknowledged concern but defended the government’s stance:
“It’s the market that determines. When there is a lot of demand, the price increases. When there is less demand the price is low. Even worse when there is no competition.”
The Prime Minister stated that the government “defends the free market”, where prices are set by supply and demand.
Prospects for a National Airline
Industry sources indicated that at least four separate projects for the creation of a Timorese national airline are currently under study, reflecting the urgency of establishing more stable and competitive air connections for the country.