Major Asian airlines match Singapore Airlines fare cuts
Major Asian airlines match Singapore Airlines fare cuts
SINGAPORE (AFP): Three major airlines announced here yesterday
that they were matching a cut in first and business class air
fares by Singapore Airlines (SIA) to maintain their
competitiveness.
Cathay Pacific Airway, Qantas Airways and Thai Airways
International said they would slash their fares to destinations
from Singapore by up to 20 percent from Oct. 16 to hold on to
their market share.
"We have filed the new prices with the Civil Aviation
Authority of Singapore," said Paul Miller, Southeast Asian
general manager for Qantas, the second largest carrier through
Singapore in terms of capacity.
Spokesmen for Thai Airways and Cathay Pacific also said that
they had informed Singapore aviation officials of the impending
cuts in first and business class fares.
"I'm sure the other regional airlines will also follow SIA and
make fare adjustments," said a spokesman for Thai Airways
International office in Singapore.
SIA announced last week that it was cutting its first class
fares by 10 to 15 percent from Oct. 16 along with subsidiary
SilkAir. Business class fares would be cut by 15 to 20 percent.
The cuts apply to tickets from Singapore to 33 cities in Asia,
South Africa and the southwest Pacific. The countries covered
include Australia, China, Hong Kong, India, Taiwan and Thailand.
The cuts are seen as a move to redress the impact of the
Singapore dollar's steep appreciation against other regional
currencies which had dented the competitiveness of SIA, Asia's
most profitable carrier.
Because of the Singapore dollar's appreciation, many
travelers buy a one-way ticket here and the return ticket
overseas.
SIA earns roughly 35 percent of its revenue from first and
business class tickets.
Miller said that Qantas had to follow SIA in making the fare
reductions because it wanted to remain competitive.
"We have 52 aircraft a week flying directly or indirectly
between Singapore and Australia. Obviously we are interested in
fares between Singapore, Australia and other destinations," he
said.
But Miller said the price reductions should not be read as a
fare war among airlines.
"This is not a price war because the new levels are
approximately what consumers can buy at the market currently," he
said.