Keen competition from rivals drives down SIA fares
It's not cheaper than its rivals, but airline is offering more specials to attract travellers
Published on Sep 23, 2012 12:30 PM
You can get a return ticket to Hong Kong for $448, Sydney for $808 and Los Angeles for $1,888. These are among no fewer than 35 deals to 35 destinations out of Singapore, all taxes and surcharges included. And you fly Singapore Airlines (SIA).
Travellers and industry analysts have seen SIA fares come down, when previously the national carrier was well known for premium pricing to match its top-rated service and fleet.
The fare deals on its website this past week mean a few hundred dollars off the usual prices and are a response to tough economic conditions and stiffer competition. But few are complaining that SIA is more affordable now compared to a few years ago.
Mr Shukor Yusof of Standard & Poor's Equity Research said SIA is feeling the pressure, especially in the economy class, where travellers are more price-sensitive.
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"In some markets, SIA has lost quite a bit of its business to the Gulf carriers and other full-service airlines."
MR SHUKOR YUSOF of Standard & Poor's Equity Research, on SIA feeling the pressure from Gulf carriers such as Emirates, Etihad and Qatar Airways
"I won't say it's cheap now, but when there are good deals and promotions, which the airline seems to offer more regularly these days, the fares are quite competitive."
Civil servant SHANNON TAY, 44