DocPepz From Singapore, joined May 2001, 1938 posts, RR: 3 Posted (8 years 2 months 1 week 3 days 1 hour ago) and read 2539 times:
Yesterday, SQ had a full page ad in the papers in SIN, charging S$98 (US$60) return for flights to Bangkok (2 hours flight ), Jakarta (1h10min flight), Hong Kong (3h30min flight), Shenzhen(3h30min flight), Taipei (4 hours), Hanoi (3 hours) and PERTH (5h10min).
Valid only on bookings made on www.singaporeair.com.sg from 14th to 17th March, travel period from 27th March to 14th April. (Try logging onto singaporeair.com now.... it's impossible. I think all of Singapore is trying to log in to book something!)
It was obviously aimed at the low cost carriers like Jetstar Asia and Valuair that fly to those cities (except Shenzhen)
Today, QF responded by offering S$98 fares to Perth too, valid for the exact days that SQ stipulated their fares for.
Valuair, in the meantime, went to the papers to bitch and whine. THeir CEO likened the situation to a David versus Goliath one. "Goliath being the big, premium airline trying to whack a small, value-based carrier out of existence" he said, adding that Valuair welcomed competition "as long as the competition is not predatory". He continued by saying that "We hope that consumers will continue to support us because if Goliath manages to knock us out, the high fare regimes will return"
Valuair continues to charge S$320 to Perth on super saver deals, with fully flexible tickets being S$620. SIA's super saver deals to PER have stagnated at S$288to PER, S$660 for fully flexible. You can get QF super saver deals to PER for S$300, and also around S$660 for fully flexible.
Now Valuair has 2 Goliaths trying to gobble him. Two big, premium, well-run airlines. QF uses brand new A330s and 744s to Perth from SIN now, no longer the ancient 763s.
I understand you Perth people haven't benefited from any form of low fares to SIN and beyond yet..... Cos all the price wars seem to be in SIN and not PER!
Pe@rson From United Kingdom, joined Jan 2001, 18830 posts, RR: 54 Reply 1, posted (8 years 2 months 1 week 3 days ago) and read 2460 times:
Don't forget: if SQ forces these low-cost airlines out of the markets, then SQ will simply increase its prices. So in the end the consumer will, again, lose out. I am in favour of choice and competition, so I would certainly prefer SQ and these low-cost airlines existing concurrently. However, these are, of course, businesses, so are interested in self-preservation.
"Everyone writing for the Telegraph knows that the way to grab eyeballs is with Ryanair and/or sex."
HB-IWC From Greece, joined Sep 2000, 4414 posts, RR: 76 Reply 2, posted (8 years 2 months 1 week 2 days 23 hours ago) and read 2407 times:
This is just the next step in the blood bath scenario that is in the process of taking place here in the region. We are obviously in a low season period and thus SQ has got the capacity on hand to come up with promotions like these. Tough times for LCCs like Valuair, JetStar Asia, Air Asia and even SQ's baby sister Tiger Airways, but I guess that's what competition is all about. They all knew what they were getting into...
QF744ER From Australia, joined Jun 2004, 276 posts, RR: 0 Reply 4, posted (8 years 2 months 1 week 2 days 19 hours ago) and read 2262 times:
It's the same here in PER, QF to HKG is cheaper than flying to SIN, it's only by about $8!! It looks cheaper until you add taxes into the equation, which IMO is quite misleading. Doesn't make any sense to me. I couldn't get a seat on the arvo B744 flight as QF being the spiteful brats they are wouldn't open up any more Y class seats until 2 days prior to departure.
Valuair is just over $AUD400 rtn including taxes at the mo.
I flew up last month on QF to SIN (QPF and QPB) and the service was abysmal and my seat was broken! My Nanna is younger than some of their FA's. Every request is just such an effort, don't bother!
Valuair is having a big campaign here in Perth something to do with the 34" on their A320's.
Lufthansa747 From Philippines, joined May 1999, 3174 posts, RR: 47 Reply 5, posted (8 years 2 months 1 week 2 days 19 hours ago) and read 2254 times:
2 pax minimum
3 day minimum
What on the earth is SQ T class to start with - I thought only GNVQ/OIX were no miles. Good to PER if the terms suit you, pathetic to BKK. I booked a free 3K flight to BKK, the rest were all S$28 with no restrictions.
DocPepz From Singapore, joined May 2001, 1938 posts, RR: 3 Reply 8, posted (8 years 2 months 1 week 2 days 18 hours ago) and read 2188 times:
All of SQ's special fares have always been 2 to go. Same for QF's lowest fares ex SIN. Not cos they have to fill bigger planes, but it's for yield control. THey want to make sure only leisure travellers (who would otherwise have just stayed at home) book the special fares, and that companies and business travellers continue to book the flexible one-to-go fares at a higher class.
If SQ and QF were having problems filling seats to PER, QF wouldn't have made SIN-PER double daily and SQ's SIN-PER is going to 19 weekly soon, up from 14 weekly just a year ago. Plus QF and SQ have the extensive feed outside Singapore. Valuair has only Hong Kong and Bangkok, and A320s for that matter. QF/SQ's 5 daily widebodies and Valuair's single daily A320. Hmm..
Jetstar Asia cannot continue charging S$28 one way to Bangkok forever. It is definitely below cost. So is $68 one way to HKG and $98 one way to TPE. At least SQ/CX/CI etc have premium cabins and connecting traffic subsidising their low fares which are offered for a selected number of seats. The LCCs do not.
Lufthansa747 From Philippines, joined May 1999, 3174 posts, RR: 47 Reply 9, posted (8 years 2 months 1 week 2 days 17 hours ago) and read 2145 times:
Fair enough about the GV2/GV4 fares - or should I say GT2 since they came up with this T fare?
Quoting DocPepz (Reply 8): Jetstar Asia cannot continue charging S$28 one way to Bangkok forever. It is definitely below cost. So is $68 one way to HKG and $98 one way to TPE.
Sure is - but my point is that I just booked last week a free flight with them with every return available for THB 700 something. I just feel that 2pax min in T doesn't quite match that - TG also had 2700 Baht BKK-SIN-BKK miles inclusive, no minimum pax number.
Overall I feel the BKK-SIN market is not sustainable at these costs - but FD has Thaksin/Air Asia, TR has SQ and 3K has QF to support them. Crazy.
HB-IWC From Greece, joined Sep 2000, 4414 posts, RR: 76 Reply 10, posted (8 years 2 months 1 week 2 days 4 hours ago) and read 2032 times:
Quoting Lufthansa747 (Reply 9): Overall I feel the BKK-SIN market is not sustainable at these costs - but FD has Thaksin/Air Asia, TR has SQ and 3K has QF to support them. Crazy.
A blood bath in the making indeed, and things are starting to look more and more like it'll be Valuair that will be biting the dust first. Air Asia, Tiger and JetStar Asia are, as you mentioned, all well backed, and don't forget the presence of a large number of fifth freedom competitors on the route: Cathay, Biman, Swiss, Scandinavian, Finnair, Garuda, Turkish, to name just a few, are also offering very decent fares.
I have never understood why all of these new startups decided to join the crowd on the SIN-BKK run. It looks to me as if there's more potential for money to be made on routes like SIN-MNL, SIN-CEB or even SIN-DPS. And I'm sure there must be other routes.