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.