Firms cut travel costs by opting for budget flights
By
Karamjit Kaur & Nicholas Yong
ST PHOTO: ASHLEIGH SIM
MR ISKANDAR Dahlan, who flies from Singapore to Kuala Lumpur at least twice a month on business, is switching from full-service to low-cost flights.
For the general manager of vessel-charter firm Pacific Richfield Marine, the liberalisation of the sector from today is well-timed.
The 40-year-old said: 'Given the current economic conditions, all companies are in belt-tightening mode, and one way to cut costs is to cut travel spending.'
With the opening up of the Singapore-KL air sector, all restrictions on one of Asia's most restricted routes are now lifted. This will allow low-cost carriers to operate more flights.
Jetstar Asia and Tiger Airways have flown the route since February, but just one flight each a day. AirAsia has run two.
From today, low-cost carriers can run as many as 14 flights, up from four. Full-service airlines will operate more than 15.
The limited flights were one reason Pacific Richfield flew its executives to KL and other Asian destinations on full-service carriers, even though this more than doubled its travel bill.
Barring promotions, all-inclusive return fares for mainline carriers such as Singapore Airlines (SIA) and Malaysia Airlines (MAS) exceed $350. Low-cost fares average $200 or less.
Mr Iskandar said: 'Now, business travellers can do day trips. They don't need to stay over.'
Low-cost carriers are pointedly targeting the business market, he noted. Jetstar lets corporate fliers pay for flights monthly instead of by the trip, and offers a complimentary itinerary change. Other fliers pay a fee to adjust travel plans at the last minute.
Jetstar sales and distribution head Leslie Ng said: 'More firms are asking, 'Can we afford not to look at low-cost carriers?'.'
The liberalisation of the Singapore-KL market, part of a wider move to free up Asean skies, comes after years of lobbying by travellers and budget airlines.
Business traveller Lock Wai Hoe, 40, said: 'Having more flights is a good thing since it gives me more options.'
A KL-based manager of an engineering firm, he flies to Singapore once a month. Recently, he waited three hours at Changi for a 9pm flight - then the only service of the day.
Said businessman Andy Bhasin, 45, who travels up to four times a year between Singapore and KL for work and leisure: 'The more flights the better. Flying is better than taking the bus.'
Tiger chief executive Tony Davis feels more people will take to the skies once they see the benefits of flying. Going with a budget airline is as cheap as taking a bus, while going by car could mean a jam at the Causeway.
SIA and MAS are confident of retaining customers, saying they offer an international network of destinations and better service.
