Challenging year shaping up for aviation industryCompetition is expected to heat up in the region’s aviation industry as airlines gear up for the opening of the sector in Asean capital cities by Jan 1 next year.
A hot route will be the once protected KL-Singapore where nearly 10 airlines are going to slug it out for a bigger share of the lucrative market.
“We do not expect a big bang for the opening of the Asean capital cities as it is already a vibrant air sector. The real excitement will be on the KL-Singapore route (where competition will be keener on the sector),’’ Standard & Poor’s Equity Research aviation analyst Vincent Ng said.
Although the KL-Singapore route has been open to limited competition since early this year, additional frequencies of up to 180 new weekly flights can be expected when it opens up earlier on Dec 1.
AirAsia, Jetstar, SilkAir and Tiger Airways are expected to join in the fray for passengers on the high-demand route.
A hot route will be the once protected KL-Singapore where nearly 10 airlines are going to slug it out for a bigger share of the lucrative market.
“We do not expect a big bang for the opening of the Asean capital cities as it is already a vibrant air sector. The real excitement will be on the KL-Singapore route (where competition will be keener on the sector),’’ Standard & Poor’s Equity Research aviation analyst Vincent Ng said.
Although the KL-Singapore route has been open to limited competition since early this year, additional frequencies of up to 180 new weekly flights can be expected when it opens up earlier on Dec 1.
AirAsia, Jetstar, SilkAir and Tiger Airways are expected to join in the fray for passengers on the high-demand route.
The established carriers plying the route are Malaysia Airlines and Singapore Airlines.
Fares will come under pressure as the date draws nearer. Certainly, a very challenging year is shaping up for the aviation industry as the full impact of the global economic downturn spreads.
Liberalising the sector means Asean carriers can mount unlimited flights between the capital cities but bilateral arrangements will also need to be hammered out.
The opening of the KL-Singapore route is the first leg of the opening of the air sector in Asean which eventually leads up to a unified regional aviation market by 2015.
Even MAS’s new carrier, Firefly, is hoping to be part of the action.
It already flies to secondary airports in Thailand and Indonesia but what it is eyeing is a slice of the KL-Singapore market.
The carrier is hoping the Government will give it the rights to ply the Subang-Singapore route.
“Many of our customers are asking for it and for us it is about convenience and adding value to our offerings. Allowing us to fly the route will complete the network.
“We have submitted our application and remain hopeful of getting three to four daily flights on the Subang-Singapore route,’’ Firefly Sdn Bhd managing director Eddy Leong said.
While airlines are working out their strategies to take advantage of the Asean Open Skies policy for capital cities, Singapore has already made the first move.
It has launched the ViaSingapore.com website, a one-stop shop offering travellers “best” air-fare deals to go to Singapore and beyond.
It is a proactive step which enhances Changi’s attractiveness as an air hub with its extensive connectivity.
But more importantly, it shows Singapore is moving fast to become the gateway of Asean as the region’s aviation sector opens up.
Fares will come under pressure as the date draws nearer. Certainly, a very challenging year is shaping up for the aviation industry as the full impact of the global economic downturn spreads.
Liberalising the sector means Asean carriers can mount unlimited flights between the capital cities but bilateral arrangements will also need to be hammered out.
The opening of the KL-Singapore route is the first leg of the opening of the air sector in Asean which eventually leads up to a unified regional aviation market by 2015.
Even MAS’s new carrier, Firefly, is hoping to be part of the action.
It already flies to secondary airports in Thailand and Indonesia but what it is eyeing is a slice of the KL-Singapore market.
The carrier is hoping the Government will give it the rights to ply the Subang-Singapore route.
“Many of our customers are asking for it and for us it is about convenience and adding value to our offerings. Allowing us to fly the route will complete the network.
“We have submitted our application and remain hopeful of getting three to four daily flights on the Subang-Singapore route,’’ Firefly Sdn Bhd managing director Eddy Leong said.
While airlines are working out their strategies to take advantage of the Asean Open Skies policy for capital cities, Singapore has already made the first move.
It has launched the ViaSingapore.com website, a one-stop shop offering travellers “best” air-fare deals to go to Singapore and beyond.
It is a proactive step which enhances Changi’s attractiveness as an air hub with its extensive connectivity.
But more importantly, it shows Singapore is moving fast to become the gateway of Asean as the region’s aviation sector opens up.
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