When SIA's fares are lower than budget airlines
Weak demand prompts promotions by premium carrier
June 17, 2009
ONE is a premium airline, while the rest are budget airlines.
PULL: Promotional ticket prices give travellers an incentive to choose the carrier. PICTURE: AFP
But when The New Paper compared ticket prices for a round-trip Bangkok ticket for this weekend, we found that Singapore Airlines (SIA) is offering lower fares than budget carriers Tiger Airways, AirAsia and Jetstar Airways.
An SIA ticket - departing this weekend and returning the next weekend - costs $227 inclusive of taxes and surcharges.
A Tiger Airways round-trip ticket will set you back by $434 over a similar duration.
When The New Paper went on to the websites of other budget carriers to check fares to the same destination and dates, for AirAsia, the fare is $296, and for Jetstar it is $313.
When contacted, Mr Nicholas Ionides, SIA's vice-president of public affairs, said the promotions in the current economic climate are to help stimulate demand.
'Demand for travel has been weak as a result of the global economic downturn,' he explained.
'And we have taken this opportunity to come up with many new price-driven specials offering great deals to those who are looking to travel.'
How often does SIA offer fares lower than the budget carriers?
From time to time, Mr Ionides said.
We called Jetstar's hotline to ask how tickets are priced.
A representative explained that airfare is based on availability, once tickets of the lowest value are sold out.
Mr Matt Hobbs, Tiger Airways' head of communications, said the airline has higher fares than SIA because the flights for the current period are already heavily booked.
'True to the low-cost model, Tiger Airways ensures that those that book early get the best fares', Mr Hobbs added.
Just last week, Tiger Airways was offering a $1 fare (inclusive of taxes and surcharges) to several destinations.
'With fares like that, is it any wonder that our planes are full?' Mr Hobbs asked.
What do travellers think?
Full-time national serviceman Malcolm Ong, 18, said: 'Budget airlines are a great, cost-effective way for those on a tight budget to reach their destination without compromising on quality.
'As a student, your only concern is getting what you need at the lowest possible price. But in this case, I'd take SIA, thanks to their attractive and low rates.'
Fellow NSF Lionel Food, 19, said: 'I'm glad that SIA is actually lowering its prices and making it less expensive than the budget airlines. I can travel without burdening my pockets.'
Source:
http://tnp.sg/news/story/0,4136,205238,00.html? 
When SIA's fares are lower than budget airlines 
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