Major Asian airlines match Singapore Airlines fare cuts<\/p>\n
SINGAPORE (AFP): Three major airlines announced here yesterday
\nthat they were matching a cut in first and business class air
\nfares by Singapore Airlines (SIA) to maintain their
\ncompetitiveness.<\/p>\n
Cathay Pacific Airway, Qantas Airways and Thai Airways
\nInternational said they would slash their fares to destinations
\nfrom Singapore by up to 20 percent from Oct. 16 to hold on to
\ntheir market share.<\/p>\n
\"We have filed the new prices with the Civil Aviation
\nAuthority of Singapore,\" said Paul Miller, Southeast Asian
\ngeneral manager for Qantas, the second largest carrier through
\nSingapore in terms of capacity.<\/p>\n
Spokesmen for Thai Airways and Cathay Pacific also said that
\nthey had informed Singapore aviation officials of the impending
\ncuts in first and business class fares.<\/p>\n
\"I'm sure the other regional airlines will also follow SIA and
\nmake fare adjustments,\" said a spokesman for Thai Airways
\nInternational office in Singapore.<\/p>\n
SIA announced last week that it was cutting its first class
\nfares by 10 to 15 percent from Oct. 16 along with subsidiary
\nSilkAir. Business class fares would be cut by 15 to 20 percent.<\/p>\n
The cuts apply to tickets from Singapore to 33 cities in Asia,
\nSouth Africa and the southwest Pacific. The countries covered
\ninclude Australia, China, Hong Kong, India, Taiwan and Thailand.<\/p>\n
The cuts are seen as a move to redress the impact of the
\nSingapore dollar's steep appreciation against other regional
\ncurrencies which had dented the competitiveness of SIA, Asia's
\nmost profitable carrier.<\/p>\n
Because of the Singapore dollar's appreciation, many
\ntravelers buy a one-way ticket here and the return ticket
\noverseas.<\/p>\n
SIA earns roughly 35 percent of its revenue from first and
\nbusiness class tickets.<\/p>\n
Miller said that Qantas had to follow SIA in making the fare
\nreductions because it wanted to remain competitive.<\/p>\n
\"We have 52 aircraft a week flying directly or indirectly
\nbetween Singapore and Australia. Obviously we are interested in
\nfares between Singapore, Australia and other destinations,\" he
\nsaid.<\/p>\n
But Miller said the price reductions should not be read as a
\nfare war among airlines.<\/p>\n
\"This is not a price war because the new levels are
\napproximately what consumers can buy at the market currently,\" he
\nsaid.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/major-asian-airlines-match-singapore-airlines-fare-cuts-1447893297",
"image": ""
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