Budget airline AirAsia sets up on doorstep of Singapore market
Budget airline AirAsia sets up on doorstep of Singapore market
Agence France-Presse Singapore
Malaysian budget airline AirAsia said on Wednesday it will start flying between Kuala Lumpur and Johor state near Singapore on Oct. 22 for less than the fare of a second-class train ticket.
In preparation for the launch, AirAsia signed an agreement on Wednesday with postal operator Singapore Post (SingPost) to sell airline seats in its first step to market the carrier outside its homebase.
The fast-rising no-frills carrier will operate two flights daily between Kuala Lumpur International Airport and Senai Airport in Johor for as low as S$9.99 (US$5.77) one way, AirAsia chief executive Tony Fernandes said.
The cost is cheaper than a $15-second-class train ticket between Singapore and the Malaysian capital and far less than the S$394 charged by major airlines for a full Singapore-Kuala Lumpur ticket.
A bus trip between Senai and Singapore's central business district takes about one hour and costs about S$2.
Fernandes said AirAsia plans to expand the flights to link Senai to the Eastern and Northern parts of Malaysia in a bid to open up the Malaysian market for Singapore.
"For Singapore tourism, it's missing 24 million people living on your borders," he said, referring to Malaysia's population.
"Most Malaysians want to come to Singapore, but in the current infrastructure, it's very difficult."
Future direct flights from Labuan and Miri in Malaysia to Senai which would be 60 percent cheaper could also draw travelers from the sultanate of Brunei to Singapore.
AirAsia also plans direct flights to Senai from some parts of Thailand and Indonesia.
"A lot of people want to come to Singapore but cannot afford (the cost of plane tickets)," he said.
Under its agreement with SingPost, the Singapore postal operator will initially clear five branches as well as its automated machines to accept bookings and payments for AirAsia seats.
Passengers can pay over the counter at SingPost outlets, self- automated machines and through the Internet.
Fernandes said 10,000 tickets at S$9.99 each had been offered for Oct. 22 to Nov. 14 and most of them had already been bought.
Fernandes also said talks with Singapore's Changi Airport for concessional rates that would allow AirAsia to establish a hub there were underway, with the latest meeting held on Wednesday.
"We had a great meeting today, we are making good progress," he said.
Some aviation analysts say that AirAsia could eat into the market of Singapore Airlines (SIA) or its regional wing SilkAir.
SIA has said it is prepared to convert SilkAir into a budget carrier to meet the competition.