Malaysia and Singapore will hold talks on opening up air routes to low-cost-carriers (LCCs) during the first quarter this year, a senior Malaysian official said Friday.

Transport ministry officials from both countries are expected to meet during the first quarter of this year to discuss the opening up of the Kuala Lumpur-Singapore air route sector to LCCs,Transport Minister Chan Kong Choy said.

Malaysian government has agreed in principle to have a more liberal arrangement with Singapore, Chan told reporters after launching AirAsia X, a long-haul budget airline, here.

AirAsia X is expected to begin operations and fly to Europe, Asia and Australia this July.

It belongs to Fly Asian Xpress (FAX), a small airline whose majority owner is aviation tycoon Tony Fernandes, one of the main shareholders of the leading budget airlines Air Asia.