The air services deal, which was concluded early last month, goes beyond conventional OSAs, a Singapore Ministry of Transport (MOT) statement said yesterday.

It was signed in London by Singapore Minister for Transport and Second Minister for Foreign Affairs Raymond Lim and British Secretary of State for Transport Ruth Kelly.

Once it goes into effect at the end of March next year, the agreement will give Singapore Airlines the right to base its aircraft in Britain and fly transatlantic routes through there, as well as serve domestic routes in the country - or what are termed 'hubbing' and 'cabotage' rights, according to an earlier Ministry of Transport statement in October.

The same privileges apply to British carriers, it said.

At the signing ceremony, Mr Lim called it 'a liberal and comprehensive air transport agreement'.

'This landmark open skies agreement clearly reflects the strong bilateral ties between both countries.

'Singapore has always embraced and championed a pro-liberalisation aviation regime, and we are naturally delighted that the UK shares this view,' he said.

The new OSA is the first such agreement for Britain, and comes nearly 20 years after Singapore first requested such rights from the country, according to the ministry.

Singapore has only one other similar 'unrestricted OSA', with the United Arab Emirates.

The latest deal with Britain means Singapore now has OSAs with more than 20 countries, including 10 in the European Union, said the ministry.