Jetstar Asia, Tiger Air Awarded Rights To Ply Singapore-kl Route

[Thaising]

SINGAPORE: Jetstar Asia and Tiger Airways are the two budget airlines selected to operate flights between Singapore and Kuala Lumpur.

And passengers can expect to pay as low as a quarter of the current price for a return ticket.

The Singapore Air Traffic Rights Committee has given the two Low-Cost Carriers (LCCs) rights to operate a daily service each on the popular and lucrative route and they can start as early as February next year.

The Transport Ministry says this comes on the back of a recent round of air services consultations between Singapore and Malaysia.

During the talks, both sides agreed that LCCs from both countries would be allowed to operate four daily services, two from each side.

It is an official take-off for Singapore's two budget carriers.

Tiger Airways and Jetstar Asia will be the first LCCs to fly between Singapore and Kuala Lumpur.

For the last 30 years, only Singapore Airlines and Malaysia Airlines have been allowed to do so.

Heament Kurian, Asia Pacific Senior Director, ARINC, says: "I think it's great news for the consumers. They are the ones...who are going to celebrate the opening up of this market and I think that with the added competition, not only will we see ticket prices going down, we will also see the number of people flying between Singapore and Malaysia and Kuala Lumpur especially, increase tremendously."

It is believed that Singapore Airlines and Malaysia Airlines operate about 85 percent of the over 200 flights a week.

With this latest announcement, consumers predict that the national carriers like Singapore Airlines will end up reducing the frequency of their flights to Kuala Lumpur and focus instead on long-haul destinations.

Many also believe the budget airlines will offer affordable return ticket prices of up to S$200.

At present, passengers pay S$400 for a return ticket to Kuala Lumpur.

On Malaysia's side, AirAsia is seen as a leading contender to get those operating rights.

It had previously said it can offer return tickets priced at S$130 for the 45-minute flight.

Heament Kurian says: "Companies that do business and have people flying up and down will generally put them on planes. And if you assume that the price of the ticket is going to go below S$200, that's at least a 60 percent drop in price that translates to whatever savings depending on the spend rate for that sector and their staff."

Jetstar Asia told Channel NewsAsia that passengers can start buying tickets to KL by the third week of this month for its single daily flights.

Chong Phit Lian, CEO, Jetstar Asia, says: "We are expecting to be at least 70 percent (lower than) the current prevailing fare. And we expect to start ticket price at S$28 per sector excluding taxes and surcharges, depending on when you book, the price can be really attractive. We can go only 180 passengers on the flight and we believe it will be taken up fully because everyone is looking forward to this very affordable journey to KL and from KL to Singapore."

Unfazed by the impending competition, Singapore Airlines promises to remain the carrier that offers a great way to fly.

Stephen Forshaw, Vice-President, Public Affairs, SIA, says: "We are ready for competition. We're going to respond to competition. We're going to be very aggressive in the market, the same as we are today. But at the end of the day, consumers can look forward to good deals."

Currently, the LCCs can ply the Singapore-Kuala Lumpur route on a limited basis.

But come December next year, such airlines can take to the skies, offering as many services as they want.

This is in line with the ASEAN plan to free up air links between ASEAN capital cities by December next year. - CNA

[my friend I]

Air Asia will not be happy - they have been trying to get on this route since they started

[TopChinese]

Airasia is granted air rights to the same route in their home country Malaysia. These LCCs will be subjected to the 4 flights a day cap tho.