Singapore Airlines cuts fares heavily to popular destinations

Singapore Airlines, the national airline of Singapore, has announced huge discounts in fares in an apparent effort to beat the reduction in air traffic arising out of the current global economic crisis.

The Singapore Airlines’ discounts, ranging from 40% to 60%, are being offered on key sectors in South-east Asia and Australia.

Singapore Airlines, which operates a hub at Singapore’s Changi Airport, has a strong presence in South-east Asia, East Asia, South Asia, and Australia. The company also operates trans-Pacific flights, and is the launch customer of the Airbus A380 Superjumbo, the word’s largest passenger airliner.

Singapore Airlines has cut the economy fare by 52% to Singapore and other destinations from India, a statement from Singapore Airlines said.

The special New Year promotional offer to popular destinations this season allows customers to select destinations such as Singapore for Indian rupees (Rs) 16,830; South-east Asia (Kuala Lumpur, Penang, Bangkok, Denpasar, Langkawi and Kuching) for Rs 23,980; and Australia (Perth, Brisbane, Adelaide, Sydney and Melbourne) for Rs 41,350.

The customers can travel to these destinations via the Singapore Airlines’ Indian gateways – New Delhi, Mumbai, Bangalore, Chennai, Hyderabad, Kolkata and Ahmedabad.

All prices are inclusive of taxes and surcharge, C W Foo, general manager (India) of Singapore Airlines, said in the statement.

The bookings for this special offer –which can be made till January 15, 2009 – are valid for travel from December 29, 2008, to March 31, 2009, for Singapore and South-east Asia; and from February 1, 2009, to June 30, 2009, for destinations in Australia.

According to many aviation analysts, Singapore Airlines’ move in cutting fares heavily is expected to set off a price war in the region’s airline sector and compel other carriers in the region, especially three carriers operating out of India – Thai Airways, Jet Airways and Malaysia Airlines – to reduce fares.

Meanwhile, travel agents in India are demanding that Singapore Airlines pay a 3% commission on ticket sales, which the airline is opposing.

Earlier in 2008, many airlines based in India had declared that they would adopt a “zero commission” policy. However, after several agent associations stopped selling tickets until the policy was revoked, the India-based airlines were arm-twisted to reinstate commissions.

Now, agent associations in India are apparently trying the same tactic on international airlines which have also withdrawn commissions, and have singled out Singapore Airlines as a potential target for boycott.