Singapore-Kuala Lumpur route breakthrough; spurs LCC fare war

AirAsia and Jetstar Asia are celebrating the liberalisation of the Kuala Lumpur-Singapore route with seat promotion sales, resulting in significant reductions on the current fares available on the sector.

 

AirAsia, which will commence twice daily Singapore-Kuala Lumpur service from 01-Feb-08, is offering 30,000 free seats on the sector, while Jetstar Asia, which was granted the rights by Singapore's Air Traffic Rights Committee to commence a daily service Singapore-Kuala Lumpur service from 01-Feb-08, is offering promotion fares for under USD1 and a "Buy-One-Get-One-Free" promotion across its network.

AirAsia, Jetstar Asia and Tiger Airways are the three additional carriers from Singapore and Malaysia granted rights to operate services on the lucrative Singapore-Kuala Lumpur sector.

AirAsia will offer fares starting from USD9.20 for one-way travel from its Kuala Lumpur hub to Singapore. 30,000 free seats will be available for purchase from 10-Jan-08 to 13-Jan-08, for travel between 01-Feb-08 and 25-Oct-08.

Tony Fernandes, Group Chief Executive Officer of AirAsia Berhad said, “It is indeed a major milestone in the aviation industry for both countries and we are very thrilled to fly to Singapore from our Kuala Lumpur hub as it completes the missing link. We have invested a considerable amount of time and effort to overcome the challenges in making this possible, and this success further demonstrates our commitment to making air-travel convenient and affordable. Now, more than ever, everyone can fly - for business or pleasure, to visit friends and relatives.”

“With more than 86 regional connections we currently serve and the ability to attract long-haul passengers from Singapore to our long-haul low-lost carrier, AirAsia X, we are confident that this route will be a definite hit with our guests,” added Mr Fernandes.

The Kuala Lumpur-Singapore route is expected to provide AirAsia X greater access to a whole new market of travellers from across the region as more people are expected to make use of the cheap flights between Changi and Kuala Lumpur to connect to the international destinations serviced by AirAsia X.

“This will have the effect of accelerating the growth of Kuala Lumpur as the region's low-cost hub, deemed to be one of the most lucrative in the region owing mostly to the very high frequency of business travellers. Therefore, we strongly hope to be granted an increase in our flight frequency in the near future and perhaps launch other destinations flying to Singapore such as from Penang, Kota Kinabalu or even Jakarta to cater to the huge demand,” said Mr Fernandes.

The Singapore-Kuala Lumpur route has been “monopolised by two major carriers all this while”. Talks regarding the liberalisation of the air route started as early as 2001, with the issue gaining headway during the discussion of the open-sky agreement at last year’s ASEAN summit when the landing rights were eventually granted to AirAsia. After more than six years, this victory to ply the Singapore route marks AirAsia’s first presence from the LCCT hub in Kuala Lumpur into the Republic. Albeit, Thai AirAsia has been operating to Singapore four times daily from Bangkok and once daily from Phuket.

To date, AirAsia has carried over 40 million passengers, and has grown from a two-aircraft fleet to 65 today and now, has the most extensive low-cost network in the region with over 86 routes - all within a short span of six years in operation.

Meanwhile, Jetstar Asia fares will give consumers ticket savings of up to 70% compared to the current fares available, according to the LCC. Jetstar announced promotional fare starting from SGD0.88 cents (USD 0.65 cents) from Singapore, and MYR1.88 (USD0.60 cents) one way for Kuala Lumpur originating passengers (all fares exclude surcharges and taxes).

"I am most delighted with the approval," says Ms Chong Phit Lian, Chief Executive Officer of Jetstar Asia/Valuair. "Jetstar Asia is happy to provide a low-fare air travel alternative for both business and leisure travellers between the two cities. We are confident our product will be well supported in view of the strong ties between the two cities where many residents of both cities have friends and relatives.

Chong Phit Lian added, "88 cents and 1.88 Ringgit are symbolically chosen as the launch fare to usher in an auspicious start to this service”.

The airline also announced a "Buy-One-Get-One-Free" promotion, to be launched for travel on Jetstar Asia's entire network of 14 cities. The promotion applies for bookings made from 09-Jan-08 to 11-Jan-08, on all services on all days, including weekends, from 10-Jan-08 to 03-Feb-08. Among these 14 cities are Jetstar Asia's new destinations of Macau and Kuala Lumpur.

 

(c) Centre for Asia Pacific Aviation. Date posted:11-Jan-08