The competitive prices that are being dangled by budget carriers plying the route have resulted in business falling between 5 and 30 per cent during the first quarter this year for major bus operators here. --ST PHOTO: LIM WUI LIANG
THE competition in the sky has hit the ground: while budget airlines slug it out for a piece of the lucrative Singapore-Kuala-Lumpur route, bus operators are feeling the heat too.
At least one is resorting to slashing its fares, while others say they will focus on improving service standards.
The competitive prices that are being dangled by budget carriers plying the route have resulted in business falling between 5 and 30 per cent during the first quarter this year for major bus operators here.
Airfares can sometimes be priced even lower than coach fares. For the first week of July, AirAsia offers some all-in, one-way fares at just $28, while coach fares range from $30 to $65.
Last Wednesday, another budget carrier, Firefly, started operating the same route, with promotional fares going for $36 (RM88).
Transtar, a big player which operates mostly luxury bus services to and from Kuala Lumpur, has seen budget airlines impact its business by about 25 per cent.
Still, most bus operators interviewed are not overly worried and do not intend to get into a price war with the airlines.
