Latest News | Updated Dec 17, 10.00 pm (Singapore time)

SINGAPORE -- Budget airlines may be able to operate out of Changi Airport within 18 months using a new no-frills terminal, Transport Minister Yeo Cheow Tong said on Wednesday. In what would be a major boost for budget carriers who have so far been reluctant to use Changi because of the high operating costs, Mr Yeo said fees at such a terminal could be 20 to 30 per cent less.

He said the Government intended to set up a new no-frills terminal to ensure Singapore did not miss out on the benefits of the fast-growing budget airline industry in Asia.

'Singapore will spare no effort to ensure that we remain the premier air hub in this region,' he said at a media function at Changi. We will continue to build on our fundamentals to ensure Changi Airport remains the preferred hub of choice for full-service carriers. But we also have to be nimble and adopt a complete mindset change to ensure that we can cater to the development and growth of low-cost carriers in this region.'

Low-cost Malaysian carrier AirAsia's efforts to establish a Kuala Lumpur-Singapore route had previously been frustrated because the Government had refused to give it cheaper operating fees at Changi.

Mr Yeo said it made sense to have a low-cost terminal operate out of Changi, rather than establish new facilities at Seletar Airport since the infrastructure is already provided for. He added that it would improve connectivity at Changi as passengers from Europe can transfer from their flights directly to the low-cost regional airlines.

The minister said he had instructed the Civil Aviation Authority of Singapore to explore what it could do to service the growing low-cost airline industry in Asia, and a decision on the new terminal would be made within a few months. The terminal, which would have few of the luxuries passengers now experienced at Changi airport, could be operating within 18 to 20 months, he said.

Citing his own experience with low-cost terminals in the United Kingdom, Mr Yeo said he expected the new terminal to have similar 'physical attributes as some of our bus terminals'. He described the prospective facilities as 'very, very basic' and warned passengers would have to take their own umbrellas in case it rained when they got off the plane to walk to the terminal.
But he stressed that the new terminal will be 'equally efficient and clean'.

Last week, Singapore Airlines announced it intended to join the budget airline industry by setting up Tiger Airways with three partners to fly from the city-state next year. -- AFP

Excellent idea. I think this solves the problem of cost(changi is deemed 'expensive' for budget carriers), yet allowing budget carriers to plug into Changi connectivity. I think this is a much better idea compared to lengthening the runways at seletar airport as I think Changi Airport is more accessible. However I do hope that the terminal won't look too 'shabby' and '2nd class' as it will look really awkward beside the spanking new T3 and newly refurbished T2.

I agree. This is a wise move, and it can only enhance traffic volume at Changi, which has the advantage of feeding international passengers onto the budget flights;)

Also by not building at Seletar, we can avoid stupid problems like noise pollution.:cheers:

BTW, here's the full report:

DEC 18, 2003

No-frills terminal could be on the way

Facility could be built at Changi Airport by 2005 to cater to budget airlines that need to keep operating costs low

By David Boey

A NEW 'no-frills' airline passenger terminal could be built at Changi Airport by 2005 for the growing number of budget carriers taking off in the region. It is likely to look more like a bus interchange, and have an austere design because low-cost airlines want to keep their operating costs low.

This sudden announcement came last night on the 100th anniversary of aviation, when Transport Minister Yeo Cheow Tong officiated at an airport function. Once the go-ahead is given, the standalone terminal should be up and running in 2005, a year before Terminal 3 is due to start operations. Its opening will coincide with the completion of a $240 million effort to upgrade Terminal 2, which will be 15 years old by then.

The estimated five million passengers the budget terminal can service each year will pay an airport tax of $12, lower than the $15 Changi passengers pay. But all passengers will still pay an additional $6 security surcharge. As luxuries in the budget facility will be slashed to a minimum, Mr Yeo said it should cost 'a fraction' to build compared to the $1 billion construction bill for T3.

'There's no aerobridge,' he said. 'Passengers walk in the open from the plane to the terminal. If it rains, they make a run for it. There'll be minimal carpeting - if at all. You're not going to have very high ceilings and the air-conditioning will only be in places where it's necessary.'

Mr Yeo said the idea was hatched after he visited terminals for low-cost airlines at Stansted and Luton airports in Britain, which serve European budget airlines, easyJet and Ryanair. If the plan takes off, a $100 million proposal unveiled just last month to lengthen Seletar Airport's runway and upgrade its facilities will be scrapped.

The speed with which the Government is moving is a reflection of the importance it places on Changi remaining the premier aviation hub in the region. The new terminal will allow Changi to serve full service airlines as well as budget carriers that want to keep operating costs low to maintain cheap airfares.

Low-cost airlines are putting increasing pressure on the region's air travel industry to up its game. Malaysia's AirAsia started Johor Baru-to-Kuala Lumpur flights in October from Johor's Senai Airport. Its maiden flight took off amid a media blitz and claims that Changi's passenger tax should be waived or reduced before the budget carrier would use the airport. Its chief executive officer, Mr Tony Fernandes, could not be reached for comment last night.

Barely a month after AirAsia took off, Indonesia-based Lion Air made its first flight to Changi's T1. Its head of public relations, Mr Hasyim Arsal, welcomed the choice of a low-cost facility. Speaking from Jakarta, he said: 'It would be very good for us because there's a lower-cost alternative. But if what we're using now is no problem, we will be happy to continue using the present terminal.'

Singapore-based budget airline Valuair is likely to start flying in May next year. One of its directors, Mr Jimmy Lau, hopes that efforts to create a no-frills building would not go overboard. He said: 'I certainly would not like to see a building that looks second class... I'm sure we will be able to build something that looks nice, but certainly we don't need to cut so many corners.'

It is understood that Tiger Airways, an offshoot of Singapore Airlines, has indicated interest in using the terminal.

Mr Yeo noted that catering to this new form of air travel requires a mindset change on the part of the Civil Aviation Authority of Singapore, just as it does for the travelling public used to Changi's high standards.

Frequent flier Mike Yeo, 27, an aeronautical engineer, hopes that the terminal would not invoke images of 'banana republic airports in the 1950s with bored customs officers and ceiling fans turning lazily'. 'But I won't mind the no-frills terminal because as long as there are planes to get me where I want and get back safely, it's fine with me.'

'No frills' must not mean 'no class'

Operators like idea, but warn that it could backfire too

By Alexis Hooi

NO FRILLS is fine, just make sure the new budget terminal is not 'no class' as well. Industry players and travellers yesterday said that while the upcoming budget terminal was a good idea and would help cement Singapore's airport hub status, it could backfire if it was viewed as too 'low class'.

Mr Jimmy Lau, a director of budget airline Valuair, was worried that the budget terminal would be an eyesore to certain groups of passengers like business travellers. 'It's all well and good to cater to low-cost carriers but, then again, we don't want a second-class terminal. There's no necessity to build a no-frills terminal. Why not work with the existing infrastructure instead of having to build something that is second class? Let's not have something that is going to be a throwback to the 1950s,' he said.

Head of Indonesia-based Lion Air's public relations, Mr Hasyim Arsal, said the new terminal would be a good move, although using Changi Airport was a luxury his passengers would enjoy. Said Mr Arsal, 35: 'What we don't want is our passengers to feel like they are second-rate passengers in another terminal.'

Budget airline operators also said that building an additional terminal to cater purely to low-cost carriers may not be necessary since existing facilities at Changi Airport can double as 'no frills' areas.

For example, a section of Changi Airport can be demarcated to cater to budget airlines like Valuair, Lion Air, AirAsia and Tiger Airways. Here, passengers would not be given access to the airport's advanced facilities like the aerobridge. In doing so, airlines would be able to cut costs and there would not be a need to build a separate terminal.

To land an aeroplane, airlines have to pay landing fees. They are also charged for the use of aerobridges, which connect the plane to the terminal. The landing fee at Changi Airport for the Boeing 737-300, which some budget carriers use, is about $450. It is not known what charges will be levied in the new budget terminal. Aerobridge charges for such aircraft are $85 for the first three hours, after which they are $85 every hour. The latter can be done away with if budget airlines opt not to make use of aerobridges, thereby resulting in lower costs for the end-consumer.

Business travellers The Straits Times spoke to said lower costs for the budget flights were a definite draw, but considerations such as safety, flight frequency and the length of the trip were still important factors. Said Mr Douglas Foo, chief executive of food and beverage company Apex-Pal International: 'For short business trips, especially if we need to make many of them, having budget airlines will trim extra costs. However, for longer trips, it would not be appropriate, as our executives need to be fresh, especially if they have to start work upon reaching their destinations.'

Added a senior officer of a local bank, who did not want to be named: 'It makes a lot of sense to use the budget carriers for shorter trips, but if a budget terminal means taking a longer time to get to the taxi-stand, the return on savings would not be enough to compensate for the time lost.'

Transport Minister Yeo Cheow Tong announced on Wednesday that a budget terminal at Changi could be operating within 18 months as he vowed Singapore would not fall behind in the race for a share of the lucrative low-cost market. 'Singapore will spare no effort to ensure that we remain the premier air hub in this region,' he said.

Analysts and industry players agreed that the plan made good business sense. An AFP report quoted Mr Peter Harbison, managing director of the Sydney-based Centre for Asia Pacific Aviation, as saying: 'It's a very practical response to some fairly substantial pressure. It's a recognition that there are going to be a number of airlines serving the lower end of the market.

'Changi Airport is always a world benchmark airport and it has taken the initiative to serve the lower-end market.' -- Additional reporting by Ben Ho

how embarrassing...
using umbrellas.........

wait that sounds like guangzhou airport hehehe......

Originally posted by perthguy78

how embarrassing...
using umbrellas.........

wait that sounds like guangzhou airport hehehe...... Whats so embarrassing about that? If you cant picture yourself carrying an umbrella, then dunt even think of flying on a budget airline! At least the choice is yours. ;)

No frills terminal very likely, as Tiger Airways has indicated interest in it. It is stated in the following piece of news.

Changi Airport to invite bids for third ground handler
Extra player will put downward pressure on fees: Cheow Tong
By VEN SREENIVASAN
(SINGAPORE) The government is inviting bids for a third ground handling operator at the award-winning Changi Airport in a move aimed at enhancing Singapore's competitiveness as an aviation hub.
Disclosing this yesterday, Minister for Transport Yeo Cheow Tong said the Civil Aviation Authority of Singapore (CAAS) had already started talking to various global players who might want to participate. 'The response so far has been very positive,' he said. 'We are hoping to be able to announce the bidders by July or August.'
Currently, all ground handling services - encompassing passenger handling, ramp handling, cargo handling and flight catering - are provided exclusively by CAAS subsidiary CIAS and Singapore Airlines subsidiary Singapore Airport Terminal Services (SATS).
Mr Yeo said Changi Airport officials will study two British terminals to find out how best to serve Asia's growing number of budget carriers.
'I visited Stansted and Luton airports in the United Kingdom, which are hubs for low-cost carriers. I have asked CAAS to study these airports closely when designing our proposed low-cost terminal,' the minister said.
He added that a third player would increase competition and put downward pressure on fees.
'As Changi's traffic has grown substantially over the years, it is timely to introduce a third ground handler to create more choices for airlines,' he said. 'The enhanced competition should lead to improved service levels and efficiencies, giving airlines greater value for money.'
He said Singapore's landing and parking fees were already among the cheapest in Asia, while fuel costs here were competitive. Hence the need to now focus on the cost of ground handling.
Passenger traffic at Changi Airport - which won 18 international awards last year - continued to pick up for the third consecutive month in December, with 2.7 million travellers using the airport. This number surpassed pre-Sars levels. In 2003, Changi Airport handled 24.7 million passengers, down 14.9 per cent from 2002. Still, the traffic figure marked a strong recovery from the nearly 60 per cent fall at the height of the Sars pandemic in April and May. Airfreight dipped 1.6 per cent to 1.61 million tonnes last year.
Mr Yeo said the fact that traffic volume expected would rise to 30 to 40 million passengers soon was sufficient justification to have three ground operations players.
Changi Airport's two terminals currently serve 68 airlines and have a total capacity for 44 million passengers. This will increase by about a third to 64 million travellers when Terminal 3, which is being built at a cost of some $1.76 billion, starts operating in 2008. Currently, SIA alone generates half the traffic at Changi.
Still, the government remains keen on building a low-fee terminal to cater to low-cost carriers - provided they wanted it.
'We are talking to Tiger Airways and we will be talking to others,' Mr Yeo said.
'Indications are that we are likely to go ahead because Tiger has indicated it wants a low-cost terminal.'
Commenting on the UK's Stansted and Luton airport hubs for low-cost carriers, the minister said the they showed how they kept a tight rein on carry-on baggage allowances and have a bare-minimum check-in system.
Turning to Thai Air-Asia's notification to the CAAS of its intention to operate Thailand-Singapore flights next month, Mr Yeo said the budget carrier still had to get the Thai government's official sanction before it could start the service.
'Thai AirAsia must be designated as an official airline by the Thai authorities first,' he said. 'Once that has been done, we will be happy to welcome them.'
The first service of the AirAsia-Shin Corp joint venture is likely to be either a Singapore-Phuket or Singapore-Bangkok route.
Copyright © 2003 Singapore Press Holdings Ltd. All rights reserved.

Hey babystan, if you're interested, check out the Singapore forum here. There are topics on aviation and more.

http://www.skyscrapercity.com/forumdisplay.php?s=&forumid=333

Cheaper Transport
I want to fly down there from Bangkok
More buget airline make that easy for me !
Well at least affordable

Hmm...I hear they are planning a direct route between Bangkok and Singapore soon isnt it? Cheaper flights are becoming a reality!! :D

saw the price for the Bangkok-Singapore route at Airasia.com few days ago. Starting at 1300THB, or about S$57(single trip and excluding tax, about $130 for return.), it's really cheap. I think the cheapest airfare to Bangkok now is still in the S$200++ range.

i know was ment to get down there next weekend to see my brother but just not some thing can afford to do !

Your brother is over here Trances? Well then very god. Now you can have a fantastically cheap way to see each other! :D

Latest development concerning the Terminal:

Tiger Airways in talks over budget terminal

PLANS for a terminal for budget airlines are firming up, with the Transport Ministry in serious talks with Tiger Airways to set up such a base.

Speaking to reporters at a conference, Transport Minister Yeo Cheow Tong said yesterday: 'We're confirming the details with them. Once they're satisfied it meets their needs and sign on the dotted line, we'll proceed with the construction.'

Mr Yeo said Tiger Airways, backed by Singapore Airlines and the people who set up successful Irish no-frills carrier Ryanair, was the only one among the three budget airlines eyeing the Singapore market to show interest in having such a terminal. The other two are Valuair, set up by SIA veteran Lim Chin Beng and which is poised to take off in May, and Malaysia's AirAsia.

Mr Yeo said that it does not matter even if only one airline wants the terminal - the Civil Aviation Authority of Singapore (CAAS) will still build it. It will also foot the bill, which analysts have estimated at between $20 million and $30 million.

Asked about Australian newspaper reports that Qantas was given the nod to operate a budget airline here 10 years ago, Mr Yeo said: 'No, they don't have the licence at the present moment.' He did not elaborate but said that any new airline wanting to set up here must be at least 51 per cent owned by Singaporeans.

Qantas declined to comment on its licence status. It had earlier refused to say anything on market talk that it is interested in partnering AirAsia.

AirAsia's chief executive Tony Fernandez denied he has any deal with the Australian carrier. 'We have our Singapore partner and we're not looking for any more partners,' he told The Straits Times. It is not known who its partner is.

AirAsia also said yesterday that it was keen to make use of the budget terminal when ready. It had applied for a licence to operate out of Singapore a month ago. Such licences take six to nine months to process.

Mr Yeo, who was speaking on the sidelines of an international chemical and oil pollution conference, also talked about the Government's plan to have marshals on MRT trains to deal with the terrorist threat.

The two train operators here have already been briefed about tightening security, he said. 'This is something that has to be done by the operators...They're there every day, they know what they have to do.'

Sounds like a good idea. This year, 3 budget airlines are going to launch operations in Singapore and having a dedicated terminal might make it more attractive for budget airlines to hub here:cool:

Tiger wants budget terminal to be kept basic

'Functional and efficient' is how no-frills carrier Tiger Airways wants it - so forget aerobridges for proposed facility

By Karamjit Kaur

DEAR Transport Minister Yeo Cheow Tong, while you are mulling over plans for a terminal for budget carriers at Changi Airport, please bear in mind that it should be very basic. All we want are enough check-in counters for passengers so they can be cleared quickly and ample parking bays for our aircraft.

Never mind aerobridges that connect planes to the terminal, because our passengers will be walking to their aircraft. But could you make that walk from the terminal a short one?

This is the wish list of Tiger Airways, so far the only no-frills carrier which will operate out of Singapore that has indicated to the Government it is interested in having a terminal for low-cost airlines at Changi.

The carrier - set up by Singapore Airlines (SIA), state-owned investment agency Temasek Holdings, the founders of Irish low-cost airline Ryanair, and United States-based marketing and business strategy consultant Indigo Partners - aims to take off in the last quarter of the year.

It is in 'serious talks' with the Government about setting up a new terminal, the minister told reporters on the sidelines of an international chemical and oil pollution conference.

Details are being confirmed, he added, and once the airline is satisfied the new terminal will meet its needs and commits to using it, construction will start. It is expected to take 18 months to complete.

The airline's spokesman told The Straits Times: 'From our perspective, the terminal should be basic, functional and efficient. More importantly, the cost of operations should be minimised, so we can pass the savings on to passengers in the form of lower fares.' Provisions should be made in the design for expansion if necessary, he added.

Observers say that in stressing that it does not want any frills, the airline is clearly mindful that fountains, paintings, plasma TVs and marble flooring may be lovely to look at but too costly to build and maintain.

Details of the design are being ironed out. It is believed the terminal will have several eating outlets selling light snacks, fast food and packed meals that passengers can take with them on their flight. Like many other budget carriers, Tiger Airways will not be serving meals on board.

The airline intends to start off with four new Airbus SAS A320 which it will lease. The aircraft will arrive in the second half of the year. By the time Tiger is in the air, one of its two competitors operating from Singapore would have started flying.

However, Valuair - set up by former SIA chief executive Lim Chin Beng - has said it will go beyond basics and is therefore unlikely to want to use the budget terminal. The other airline that could end up using the new terminal is AirAsia, which has applied for an air operator's certificate. This is required to operate commercial flights out of Singapore. The Malaysian no-frills airline is to start a joint-venture carrier based here.

Both Tiger Airways and Valuair will fly to destinations up to about four or five hours from Changi.

Latest News | Updated April 15, 12.55 pm (Singapore time)

Valuair gets go-ahead to operate in S'pore

SINGAPORE - The Civil Aviation Authority of Singapore(CAAS) has granted budget carrier Valuair its air operator certificate on Thursday, putting it on track to becoming the first of four new Singapore-based low-cost airlines to launch the service.

The CAAS said the budget airline had demonstrated it was capable of providing services safely. The carrier was evaluated in areas such as manpower, organisation structure, training, maintenance, operations and quality assurance.

The next step for Valuair, set up by former Singapore Airlines managing director Lim Chin Beng, is a licence from the Air Traffic Rights Committee that will allow it to fly to its intended destinations.

Valuair is aiming to become the first Singaporean-based budget carrier to enter the increasingly crowded Asian budget airline market, with flights tentatively scheduled to begin at the end of this month. The other airlines -- Singapore Airlines-owned Tiger Airways, Malaysia's AirAsia and a yet-to-be-named airline partly owned by Australia's Qantas - have not been given operator certificates yet.

Singapore has announced it would build a special budget terminal to cater the low-cost carriers looking to use Changi Airport as a base. -- AP,AFP

Valuair gets air operator licence

Final hurdle is official nod for flight plans; budget carrier has also narrowed its search for a CEO

By Karamjit Kaur

IT'S all systems go for Valuair which got the official nod yesterday to start flying out of Changi Airport.

With air operator's certificate in hand, Singapore's first budget carrier has one last hurdle to clear before its maiden flight early next month.

It can expect to hear from the Transport Ministry in the next few days on whether it will get its two flights a day each to Bangkok and Jakarta, and a daily flight to Hong Kong.

Everything else is in place after a tough year of preparations, said a beaming Mr Lim Chin Beng, Valuair's chairman and Singapore Airlines veteran.

At a party for all 90 staff at the airline's Toa Payoh office, he said he was elated that the airline met the Civil Aviation Authority of Singapore's requirements, which he described as a 'rigorous exercise'.

He said: 'The last one year we worked hard getting the airline off the ground, which was a big challenge. Now the next challenge is to fill the aircraft.'

The second of its two Airbus 320 aircraft arrived from Toulouse, France, on Saturday. Both are now parked at Changi, waiting to welcome passengers.

All 40 cabin crew have been trained and final touches are being made to the design of their uniforms. To reflect a 'fun and sporty image', they will don polo T-shirts and trousers or skirts, with sneakers instead of high-heels.

As for flight details and fares, which will be about 40 to 50 per cent lower than what other traditional carriers charge, expect an announcement next week.

The search for a chief executive officer is also in its final stages.

Two potential candidates have been identified, both with no airline experience. However, the carrier will take off even without a new top man on board, as soon as the air rights are awarded.

Three other low-cost carriers, also hoping to take off by year-end, are not far behind: Tiger Airways, set up by SIA with several partners; AirAsia's joint venture in Singapore; and a yet-unnamed newcomer backed by Qantas and Temasek Holdings.

Of the four, analysts say Valuair faces the toughest challenge. Two competitors are backed by heavyweight carriers and the third is already operating in the region and making a profit.

Unfazed, Mr Lim said: 'We cannot object and we cannot complain about competition. It will make us work harder, that's all.'

They havent decided where theyre going to fly to right?

Hm...think the flight to Bangkok is almost confirmed, although HK and Jakarta will need approval first?

Low-cost rivals could dent SIA yields

By VEN SREENIVASAN

LAST week, Singapore Airlines (SIA) announced that its overall load factor hit a record 71 per cent in March. Passenger load increased to 74 per cent, while cargo load dipped slightly to 68.5 per cent due to capacity growth.

Analysts, however, greeted the performance with mixed responses.

While DBS Vickers and UOB-Kay Hian Research enthusiastically welcomed the news and reiterated their 'buy' calls on the stock, OCBC Investment Research has a 'market perform' rating, and Merrill Lynch downgraded it from 'buy' to 'neutral'.

'Valuation for SIA remains attractive - and has arguably been oversold on a relative basis on concerns over new low-cost airlines. However, with momentum fading, and with the uncertainty over new entrants likely to linger for some time, the stock lacks an obvious catalyst for re-rating in the short term,' noted Merrill Lynch's Simon Gresham.

However, UOB-Kay Hian noted that although SIA's cargo traffic for FY04 fell below its expectations, passenger traffic and overall traffic for the year were ahead of their forecasts.

'With the stronger-than-expected traffic, there is upside potential to our projected EPS of 54.6 cents for FY04. SIA's valuation is very cheap, at 20.1x FY04 and 13.2x FY05 earnings.'

The big concern among many analysts is the competition which SIA will face on its regional routes from low-cost carriers. Valuair has already obtained its air operators' licence and is likely to challenge SIA subsidiary SilkAir on most of its regional routes in the years to come. Singapore AirAsia, Tiger Airways and a yet-to-be-named Qantas unit could be up and running within this year.

All this could have a significant impact on SIA's yields and market share on routes that are under four hours of flying time.

http://business-times.asia1.com.sg/mnt/media/image/launched/2004-04-19/bt040419a2.gif

April 21, 2004
Valuair plans HK all-women flight

By Zubaidah Nazeer

ONE of budget carrier Valuair’s first flights will be for women only.

The airline’s executive director Jimmy Lau told Streats that a low-cost trip to Hong Kong just for women will be one of the things he is offering for participants in his Women Only lifestyle exhibition, which takes place this weekend.

The women-only flight will take place on May 21, following the launch of Valuair. He wouldn’t reveal the ticket price just yet but said that it would be a good deal.

There will be extras such as a higher luggage allowance – just the thing for bargain-hunters on the prowl for good buys in Hong Kong. He added: “I’ll throw in perks, which can be in the form of entertainment, like music or make-up... it’s all about having fun and for the women to network.”

That’s also the theme of his Women Only event, at Meritus Marina Mandarin Hotel.

The free-admission show will have a mix of talks and product showcases split into five categories: lifestyle, fashion and beauty, health and wellness, travel and culture, and personal development.

There will be talks on fitness, nutrition, balancing career and family, pregnancy and cosmetic surgery.

APRIL 21, 2004
Valuair to launch flights next month
SINGAPORE - Singapore's fledgling budget carrier Valuair will launch services to Bangkok, Jakarta and Hong Kong from next month, the company said on Wednesday.

The airline, which was established by a group of businessmen including former Singapore Airlines executives, will begin twice-daily flights to Bangkok from May 5, and flights once a day each to Hong Kong from May 7 and Jakarta from May 10, said Mr Jimmy Lau, an executive director.

Round-trip fares on the Bangkok and Jakarta routes will start at S$138, he said at a press briefing. The Hong Kong route has yet to be priced.

Valuair currently has a fleet of two 162-seat AirBus A320 planes and plans to acquire two more aircraft by the end of the year.

The airline will face fierce competition from a handful of recently established no-frills carriers in the region, including Malaysia's AirAsia, Tiger Airways, a joint venture between Singapore Airlines and Europe's Ryanair, and an as yet unnamed joint venture between Australian carrier Qantas and the Singapore government.

It will also have to battle national flag carrier Singapore Airlines and SIA's regional arm, SilkAir, for a slice of the Southeast Asian market.

'We are prepared to be the underdog and give them a run for their money,' Mr Lau said. -- AP


--------------------------------------------------------------------------------
Copyright @ 2004 Singapore Press Holdings. All rights reserved.

This story was printed from channelnewsasia.com




Title : Valuair to fly to Jakarta, Bangkok, HK; to offer meals and some frills
By :
Date : 21 April 2004 1626 hrs (SST)
URL : http://www.channelnewsasia.com/stories/singaporebusinessnews/view/81165/1/.html

SINGAPORE : Valuair, Singapore's first budget carrier, will be launching its commercial flights next month and it has named Jakarta, Bangkok and Hong Kong as the three initial destinations it will be flying to.

For a discounted price, passengers will still get meals on board and some frills as well.

A return economy ticket for a flight from Singapore to Bangkok on a full service airline like Thai Airways costs about S$240, but no-frills AirAsia can fly you to Bangkok for as low as S$45.

For Valuair, it is offering an introductory price of S$138.

Valuair says it wants to be a budget carrier with a difference.

It aims to offer affordable travel without too much sacrifice on the creature comforts that air passengers are used to.

"We have a couple of features which include larger, better-pitched seats in leather upholstery. We will have assigned seating rather than free seating, which most other low-cost carriers do. And we will have a 20 kg baggage allowance rather than 15 kg, which other budget carriers provide. So we have several key features that are better than most other budget carriers," said Valuair executive director Jimmy Lau.

And for Valuair there will be no need to rush to book tickets way ahead of the travel date.

Valuair's ticket charges will not be based on a tiered system in which early bookings will be charged less - it will all come at a single price.

From early May Valuair will be flying twice daily to Bangkok and once a day to Jakarta and Hong Kong. - CNA

April 22, 2004

ValuAir in codesharing negotiations
It'll start flights to Bangkok, HK and Jakarta in 2 weeks

By DONALD URQUHART

VALUAIR said yesterday it is holding codesharing talks with an eye to sharing passengers with other airlines as the budget carrier announced it will begin flying to Bangkok, Hong Kong and Jakarta in just under two weeks.

ValuAir executive director Jimmy Lau told the press yesterday that the airline's preference for using Changi Airport's Terminal 1 was based largely on its ability to undertake interlining of passengers to and from other carriers.

The onward transfer of passengers from one airline to another through code sharing or other alliance-type arrangements is not typically provided by budget carriers, which tend to focus strictly on point-to-point services.

Mr Lau also confirmed ValuAir's codesharing discussions, saying: 'We will be a neutral codesharing partner for any of the airlines that wish to codeshare with us.' He said there are 'quite a handful' of interested parties and details would be firmed up within a few months.

The budget airline announced the destinations yesterday with special promotional fares of $138 to Bangkok and Jakarta until end-May, following the granting of air rights by the Civil Aviation Authority of Singapore (CAAS).

ValuAir will begin twice daily flights to Bangkok beginning May 5, with tickets going on sale from Friday, followed by daily flights to Hong Kong and Jakarta starting May 7 and May 10, respectively. It did not reveal its regular-priced fares for any of the three destinations.

Mr Lau said yesterday he was happy with the destinations ValuAir had been awarded, but would not reveal what air rights the budget carrier had sought. 'We asked for the world, obviously,' he quipped, adding ValuAir had 'got almost what we asked for'. Mr Lau said the airline will stay focused on high-density routes with no plans to expand into seasonal destinations.

On future destinations, Mr Lau said Perth was 'still on our radar screen', and with landing rights available for India, this is also in the planning phase. 'We have a model going after a certain market segment that offers the largest growth potential for us,' Mr Lau said. This includes targetting sporting events and festivals around the region for special tie-ins and packages.

The carrier will also take the bold step of scheduling a women-only shopping flight to Hong Kong on May 21, complete with extra baggage allowance and special onboard entertainment.Aiming somewhere between the bare-bones budget carriers and the full-service airlines, ValuAir will offer light meals on board, 20kg baggage allowances and 32-inch pitch leather seats, assigned seating and a fixed fare structure.

Catering services have been contracted out to Singapore Airlines' subsidiary SATS, while engineering and maintenance has been awarded to ST Aerospace. Mr Lau declined to say how many seats he needs to fill to break even, but indicated he expects ValuAir to break even by the second year.

AirAsia’s mystery partner in S’pore
Warner Music MD is 51% stakeholder, but her involvement is downplayed by carrier

By Chua Kong Ho

MS KATHLEEN TAN Kim Lan, Warner Music Singapore’s managing director, has turned out to be the mystery Singapore partner in AirAsia’s Singapore joint venture airline. The 30-something music executive, together with AirAsia chief executive Tony Fernandes and AirAsia chairman Kamarudin Meranun, are directors in Singapore-incorporated AirAsia Pte Ltd.

A check with the Accounting and Corporate Regulatory Authority showed that Ms Tan holds 51 per cent of the shares in the company, with AA International, AirAsia’s investment vehicle, holding the rest. If Ms Tan is contemplating a career change, possibly as the airline’s chief executive, she wouldn’t be the first Warner Music executive to do so.

Mr Fernandes himself was Warner Music’s vice-president in charge of South-east Asia when he quit to start the Malaysia-based budget airline. He then successfully poached Warner Music Thailand’s general manager, Mr Tassapon Bijleveld, 36, to head Thai AirAsia, his joint venture airline with Shin Corp. About two-thirds of AirAsia’s marketing team, including chief communications officer Joyce Lai, are from Warner Music Malaysia.

Ms Tan, who was at the AirAsia press conference in February when the airline announced it was setting up a Singapore-based carrier, denied a possible move when asked by Streats then. She said then that she had just renewed her contract with Warner Music and had no intention of joining AirAsia. Ms Tan declined to comment when contacted yesterday.

Head-hunted from fashion company F J Benjamin to take over Warner’s sales and marketing portfolio, Ms Tan was promoted to regional marketing manager within 14 months, working out of Hong Kong. She is now into her seventh year heading Warner Music’s Singapore operations and one of only two woman managing directors in the music group.

Mr Fernandes himself downplayed Ms Tan’s role in AirAsia, saying she was holding the shares on his behalf until he can line up the necessary investors for the startup. “She’s a very dear friend. I’ve known her for more than 10 years and she’s someone I can trust to hold the shares for me,” said Mr Fernandes in February. He was Ms Tan’s boss when he was Warner Music vice-president in charge of South-east Asia.

Mr Fernandes had said in February that he hoped to raise $60 million for the Singapore startup and planned to start operations with two airplanes and 150 Singapore-based staff. So far, only DBS Bank has come out to say that it was willing to take a small stake in AirAsia Singapore.

Meanwhile, AirAsia chairman Kamarudin Meranun said yesterday that the airline has finalised plans to start flights to Macau from Bangkok, possibly by June.

all women flight?! LOL..what a marketing gimmick! I wonder what the ladies make of this:D

all women flight?! LOL..what a marketing gimmick! I wonder what the ladies make of this:D
They wont be able to have their hubbies helping them to carry their goods and message their legs at the end of the day! :D

April 22, 2004

It’s no frills for Tiger staff, too
SIA’s budget airline does away with medical benefits, meals, expat perks

By Chua Kong Ho

No medical benefits. No housing allowance for expatriates. No on-duty meals.
And you have to pay for the uniforms as well.

Welcome to Tiger Airways. Singapore Airlines’ 49-per-cent-owned budget associate has pared down the sort of benefits and entitlements that most people have come to expect from working for airlines. But Tiger also promises that there will be no seniority system, and that foreigners and locals will be employed on equal terms and assessed on merit.

Explaining its approach, beginning with its move not to pay for its pilots’ medical bills, Mr Patrick Gan, Tiger’s chief executive, told Streats: “Our pilots will be paid a salary, and will be given the freedom to manage their income as they see fit.” The idea is to keep administration costs to a minimum.

There won’t be special allowances for expatriate pilots either. They’ll get the same pay for the same work, and won’t be given housing or education allowances. All the pilots are signed to three-year renewable contracts, which means no automatic pay increases and hence, no seniority system.

Parent SIA foots its pilots’ medical bills. Even then, management has signalled it will push for a reduction in medical benefits by asking its staff to pay part of the costs of that visit to the doctor’s. Singaporean pilots are permanent employees of the company. Expatriate pilot pay and benefits have been a sore point in management-pilot relations for a long time.

Valuair, Tiger’s cross-town rival that yesterday announced flights to Bangkok, Jakarta and Hong Kong from next month, has a health plan for its employees under which the staff pays part of the cost of their medical expenses.

There won’t be any meals provided for Tiger’s flight and cabin crew either. Instead, there’s a fridge on the airplane where they can keep their meals and drinks.

Flight and cabin crew will also have to pay for their uniforms, through deductions made over three months from their salaries. This is to “encourage” crew members to take care of their uniforms, said the airline. At SIA, female cabin crew are entitled to four new sets of the Pierre Balmain-designed sarong kebaya each year.

As for pay, Tiger’s captains can expect to earn between $14,000 and $16,000 a month inclusive of allowances, while first officers can earn between $9,000 and $11,000. This is comparable to what SilkAir and SIA 777 pilots earn, sources say, but are not strictly so because of the absence of medical benefits at Tiger. Over at Valuair, captains are paid $13,000 to $15,000 and first officers $8,000 to $9,000, executive director Jimmy Lau told Streats. But Valuair’s expatriate pilots get a housing allowance.

Despite the lack of medical benefits, there’s a long queue of applicants for Tiger jobs, says Mr Gan. “We certainly have had no shortage of applications from well-qualified and experienced pilots,” he said. “Ultimately, we’re looking for people with a passion for the business and who are committed to making our business model work.”

As for cabin crew, Tiger Airways also departs from convention by throwing out academic qualifications as a criterion, in stark contrast to SIA, which recently raised its minimum from O to A levels for cabin crew.

this is cool ...
how much will it be to fly to singapore from hong kong???
will it fly straight to CLK or would it fly to the nearby Macau International?

this is cool ...
how much will it be to fly to singapore from hong kong???
will it fly straight to CLK or would it fly to the nearby Macau International?
We are still awaiting ValuAir to announce the price. It should be straight to CLK, or else they would be saying they fly to Macau instead?

I hope to see prices in the S$200 range...that will be more then 50% cheaper then normal tickets! :righton:

Business Times - 26 Apr 2004


ValuAir offers S'pore-HK return flights for $300

SINGAPORE - Singapore-based budget airline ValuAir said on Monday it will offer return tickets to Hong Kong for just $300, nearly half the price of the mainstream carriers.

ValuAir, which will become Singapore's first operational no-frills carrier when it takes to the skies next month, also announced a tie-up with Visa that will offer further discounts to passengers using the credit card.

ValuAir's three-month promotional fare of $300 to Hong Kong will go on sale on Saturday with the first daily flight on May 7.

The ticket is $200-300 cheaper than major airlines' lowest prices listed on popular travel portal zuji.com and $77 cheaper than its nearest rival, China Airlines.

The company announced last week that it will begin operations on May 5 with return flights to Bangkok that will initially cost $138. That promotional rate will last until May 21.

ValuAir will also offer return flights to Jakarta from May 10 for $138.

In a separate statement, ValuAir said it intended to tap into Visa's 26 million card holders living in the airline's three initial destinations.

'Under the ValuAir-Visa partnership, Visa cardholders will receive ValuAir's lowest fares on flights to any destinations on any day all year round,' it said.

ValuAir, started by former Singapore Airlines managing director Lim Chin Beng, has beaten a host of rivals to become the first budget airline to base itself out of Singapore.

Malaysia's AirAsia, the regional market leader, has applied for a licence to set up a base in Singapore. A Singapore Airlines-backed consortium called Tiger Airways and an as-yet unnamed no-frills carrier involving Australia's Qantas airlines also intend to operate from Singapore.

Copyright © 2004 Singapore Press Holdings Ltd. All rights reserved.

Damn.....$300 is way over the $200 I hoped it would adopt! :bash: :D

Yes, I was kinda thinking it could be S$250, sad....

300s ... well its pretty good for high-season ... i guess
does that include tax?

300s ... well its pretty good for high-season ... i guess
does that include tax?
The price should be excluding tax. I am not sure how much the tax is going to jack up the price...any info from the HK side?

no not yet ... however i knew their was some promotional fares from cathay to fly to singapore round trip for around 1000HKD ... maybe that was to fend off the no-frills who knows ...

i was thinking why can't they fly to macau and than ferry to central ...
it only adds like 20 mins and the airport tax is a lot cheaper ...
the immigration and customs are also very similar well ...

anyhow i still hope they can lower it a little bit more ...
i want to come la ...

I just found a news article for valuair ...
they announced it will be at least 40% off the lowest other airlines offer ...
currently singapore airlines and cathay pacific are pricing this route at
$999HKD --->$216SGD
so forty percent off that is ...
$600HKD --->$130SGD
is this true???

星廉價航空割價四成搶客

　【本報特訊】新加坡首家廉價航空公司Valuair繼上周公布在下月7日起，正式開辦每天一班來往香港與新加坡定期航線後，該公司昨日在新加坡表示，有關票價將會較現時新加坡及國泰航空（293）的票價低四成，若以現時該兩家航空公司剛推出的新加坡優惠機票999元計算，Valuair的票價換言之就是599元，相信對現有航空公司收益率構成龐大壓力。

港星線低至599元
　Valuair昨日在新加坡舉行記者會，執行董事Jimmy Lau表示，首推出香港、曼谷及雅加達三條航線的機票定價，將較現時提供服務的航空公司最低價格再低四成。該公司強調，機上只安排便餐，機艙亦不設有電視、音響等娛樂設施，不過Jimmy Lau稱，有信心可成功取得來往兩地的商務及一般旅客。

　為了迎戰Valuair，國泰及新加坡航空早前已相繼推出來往香港至新加坡優惠計劃，新加坡航空率先推出低至999元機票優惠，國泰隨即跟隨，此優惠相較原來介乎1600至2000元的水平已便宜五成，若Valuair將票價再減多四成，相信國泰的收益率將大幅收窄。國泰主席何禮泰早前在業績會上坦言，今年收益率仍受沉重的壓力。

國泰收益率勢受壓
　在激烈競爭的航空市場，亞洲區早已醞釀一批廉價航空公司，挑戰票價相對較高的大型航空公司。除了Valuair外，同為新加坡公司的Tiger、馬來西亞Airasia及英國Qantas旗下的Qantas blue航空，已經搶灘進入亞太區市場，Airasia更在稍後推出香港航線。里昂證券早前發出報告粗略估計，廉價航空有機會奪取亞洲今年航空市場4%市佔率，而Qantas blue更成功取得澳洲本土市場三成份額。

　雖然如此，業界人士相信在香港成立廉價航空機會不大，因為香港機場降落費及停泊費均昂貴，即使國泰早前表示不排除亦會成立廉價航空，但業內認為國泰在吸收與姊妹公司港龍航空最終構成直接競爭的經驗後，就算推出相關業務亦會採取審慎態度。

I suppose the tought of having to do the transfer might put off travellers? :D How much is the prevaling airport tax and other charges at HKIA? You have the figure for Macau too?

999HKD? That seems a little low when converted to SGD...perhaps it simply costs more to buy the tickets form here?

Cathay is selling the round-trip ticket at SGD388, a promotional price from a normal price of SGD500.

I did a search for SIA, and it is charging a same flight at SGD758, which if including airport taxes, will be a revolting SGD805 (3702.92HKD)! This fare for SIA is for their normal flights with relatively low restrictions.

Suddenly SGD300 seems quite cheap...hahaha! But I am hoping for the other 2-3 budget carriers to launch flights to HK by this year and hopefully, a price war ensues! :D

I suppose the tought of having to do the transfer might put off travellers? :D How much is the prevaling airport tax and other charges at HKIA? You have the figure for Macau too?

999HKD? That seems a little low when converted to SGD...perhaps it simply costs more to buy the tickets form here?

Cathay is selling the round-trip ticket at SGD388, a promotional price from a normal price of SGD500.

I did a search for SIA, and it is charging a same flight at SGD758, which if including airport taxes, will be a revolting SGD805 (3702.92HKD)! This fare for SIA is for their normal flights with relatively low restrictions.

Suddenly SGD300 seems quite cheap...hahaha! But I am hoping for the other 2-3 budget carriers to launch flights to HK by this year and hopefully, a price war ensues! :D

According to the SIA flight prices we can deduce that the valuair S$300 will add up to about S$350 (300+(805-758) )....

According to the SIA flight prices we can deduce that the valuair S$300 will add up to about S$350 (300+(805-758) )....
It seems like the airport tax is SGD47. I am not sure if this means the airport tax for both, because when I do a similar search from Cathay's site, I get the same SGD47 figure added to the Cathay flight's cost?

Valuair eyes destinations further than 5 hours away

By Asha Popatlal, Channel NewsAsia

http://www.channelnewsasia.com/imagegallery/store/phpmzDy26.jpg
Valuair's flight attendants greet Channel NewsAsia's crew in the plane

SINGAPORE : Singapore's first low-cost carrier Valuair has fired the latest salvo in the battle of budget airlines - it is eyeing destinations further than 5 hours away like Melbourne and Sydney. But that will only be in a year or two. Channel NewsAsia found out about this as it took to the skies on a flight to nowhere with Valuair.

It is not the catwalks of Paris or Milan, but the aisle of Singapore's first budget airline. Valuair unveiled its cabin crew look on its maiden passenger flight for guests on Wednesday.

And the models were Valuair's all-local cabin crew in their new uniform - blue polo shirts, khaki pants or skirts and running shoes. Although some are newcomers, the cabin crew performed the safety checks and demonstration like veterans - and soon it was time for take-off.

But how did the budget carrier score in terms of comfort? Unlike usual budget carriers, Valuair comes with assigned seats, leather chairs so new you can still smell the freshness, about 10 per cent more leg-room space and simple snacks.

And the carrier has other tricks up its sleeve, like in-flight birthday surprises and tie-ups with companies like Maybelline which will offer make-up touch-ups on some flights.

Said Valuair Executive Director Jimmy Lau: "We got together to serve the kind of audience that we are going after - which is a very important group of women travellers these days - high disposable income, very influential, make decisions."

After just an hour, Valuair's maiden flight to nowhere was back at Changi, but the crew was still on cloud nine. "The flight was simply great - fun filled," said pilot Captain K.C. Leong. But for flight attendant Awyong Lynn, the experience was "nerve-wracking". "(It was) nerve wracking because I was the operating crew but I still had fun," she said.

And for now, Valuair is going it on its own - despite earlier reports of a possible tie-up with Virgin Blue. Mr Lau revealed: "I think there's no planned time-plan for this, we meet very often in conferences around the region. I think it's important first to get our operations right and get ourselves into the market and pick up a share of the market first and then we'll be happy to talk."

Valuair takes off on its first commercial flight to Bangkok next Wednesday. On its wish list of destinations are coastal cities in China, parts of India, Vietnam and Manila. - CNA

Business Times - 29 Apr 2004


Valuair confirms talks with Qantas, Virgin Blue

Discussions centred more on market info sharing: CEO

By VEN SREENIVASAN

EMERGING low-cost carrier Valuair confirmed yesterday that it held exploratory talks with Australia's Qantas and Virgin Blue, but said nothing has resulted from the discussions yet.

'We can't say that we talked specifically about any tie-ups,' Valuair's executive director Jimmy Lau said in response to media queries. 'But we welcome any strategic partnership that will add value to what we have and are doing.'

Speaking at a ceremony to mark an alliance with international cosmetics company Maybelline as the official make-up brand for Valuair's cabin crew, Mr Lau described the discussions with the Australian carriers as centring more on 'market information sharing'.

'Let's put it this way, they came calling,' he said, when asked if Valuair is seeking a tie up with Qantas or Virgin Blue.

Qantas has just announced a partnership with Temasek Holdings and other parties to set up a Singapore-based budget airline, while Virgin Blue has indicated it is looking for a partner to do something similar.

Valuair and Maybelline sealed their make-up deal at Changi airport yesterday by signing an oversized Valuair boarding pass with lipstick from Maybelline's new 'Forever Metallics' line.

To celebrate the partnership, Valuair cabin crew made their debut appearance, dressed in their signature blue and khaki outfits and sporting the latest colours from Maybelline's make-up collection. The event also featured the official launch of Maybelline's new mascara line 'Sky-High Curves'.

In preparation for Valuair's first commercial flights next month - to Bangkok, Hong Kong and Jakarta - Maybelline staff have conducted training sessions for all cabin crew.

The Maybelline deal comes just days after Valuair signed an agreement with Visa International to offer discounts on its flights.

Although a budget carrier, Valuair is differentiating itself from no-frills carriers like AirAsia and Tiger Airways by offering some in-flight services and allocated seats. By keeping costs down, it plans to sell its tickets at a significant discount to those of mainline network carriers.

Copyright © 2004 Singapore Press Holdings Ltd. All rights reserved.

does that imply virgin blue might be entering market?

It seems like the airport tax is SGD47. I am not sure if this means the airport tax for both, because when I do a similar search from Cathay's site, I get the same SGD47 figure added to the Cathay flight's cost?

I've tried the same thing on the Valuair website and the airport tax and stuff cost S$54....So it will be S$354 for a return ticket to Hongkong..... :)

does that imply virgin blue might be entering market?

There is a possibility of alliance with Valuair.....but it still too early too say anything now...Let's see how things go.... :)

联合早报新闻：新加坡 2004-05-02


--------------------------------------------------------------------------------

● 王辉雯

　　本地首家成立的廉价航空公司“惠旅航空”（Valuair）还未启航，就已经引发一轮航空削价战。

　　惠旅航空自从上个月宣布进军香港和曼谷后，航空市场就立即产生强烈反应。惠航来势汹汹，启航之初特别以300新元优待价，售卖新加坡与香港的来回机票。在这条航线上经营多年的传统大型航空公司，为了留住客源，纷纷展开削价行动。


　　由廉价航空惠航激起的削价行动，在香港方面尤其明显，国泰和新加坡航空公司甚至在上个月16日，即惠旅航空宣布获得营业准证后的第二天，就齐齐在香港宣布，香港--新加坡航线经济舱机票价剧降至港币990元（约新币215元）。虽然逗留时间只限两天至五天，但是还是吸引不少旅客到新加坡旅游。

　　港币990元，可说是这两家航空公司在这条航线经营多年来所给予的最大优待。据了解，新航的香港--新加坡航线的经济舱机票，原本卖港币2050元（约新币448元），现在减了一半。

　　根据网络机票订购网站“足迹”（http://www.zuji.com.hk）û...#21491;。

　　香港这几家航空公司的削价行动，也压低了香港到新加坡旅游团费。新加坡四天游的价格，从原本的港币1999元（约新币437元）降低至港币1499元（约新币327元）。香港旅游业者因而认为，这将掀起港人到新加坡旅游的热潮。


从新加坡起飞航班

削价幅度比较小


　　各航空公司除了在香港极力削价争取搭客之外，在新加坡也开始有降价的动作。只是减幅比在香港的促销要小许多。国泰航空是第一个反应，自上周起，国泰航空就在新加坡展开促销行动，一张从新加坡出发到香港的往返机票只售388元。昨天开始，国泰航空又再与香港旅游促进局合作，推出从389元起的三天两夜香港游特价配套：一张经济舱来回机票、两晚住宿，还附送购物券。

　　值得留意的是，国泰虽然每天提供四趟从新加坡飞往香港的航班，但是这次的促销特惠票只限于早班机（上午7时55分起飞）。这个航班的起飞时间与惠旅航空飞往香港的航班时间（上午7时25分）非常接近，国泰的促销无疑是冲着惠航而来。

　　除了国泰之外，新航也在不久前推出450元（四人成行）的香港机票，降价幅度虽不如它在香港所降价幅度那么大，但是也比之前的一般票价便宜100余元。


惠航把促销期延长


　　惠旅航空虽然一直表示，不会打价格战，但是面对竞争却也有相应的动作。惠航从昨天起刊登广告，宣布要把香港的300元启航优待票价，从原本的5月31日前使用，延长到6月30日。如此一来，在六月学校假期旅游旺季惠航搭客也能以300元促销价格买到新加坡飞至香港的往返机票。

　　惠旅航空网站资料显示，启航促销期之后，往返香港的机票分为两种，低廉票价（Saver Fare）售350新元，灵活票价（Flexi Fare）则定价为420新元。

　　当然，也有些航空公司决定静观其变，不贸贸然加入战局。华航新加坡办事处总经理毕稀年接受早报访问时指出，华航目前飞往香港的票价约是360元左右，华航目前在新加坡还没有决定会有任何大幅度的削价行动。

　　他说，华航准备等惠航起飞后一段时间才看是否要在价格上与对方竞争。“毕竟惠航提供的是早班机，华航飞往香港的则是午班机，对象不太一样。”

　　其实，不少受访的旅游业者都认为，传统的航空公司如国泰和新航其实没有必要打价格战来拉客。因为这两家航空公司每天提供的航班很多，所吸引的搭客与只提供一趟航班的惠航很不一样。

　　一名业者认为，像国泰这次进行促销削价的早班机，原来就是很受搭客欢迎的航班，很多商务搭客都喜欢乘搭这个航班到香港去。而这类搭客最在意就是时间的伸缩性，所以国泰不必过于担心，惠航的出现会让国泰流失这批商务搭客。

联合早报新闻：新加坡 2004-05-02


青菜萝卜各有所好选亚航还是惠旅？

--------------------------------------------------------------------------------

● 王辉雯

　　惠旅航空启航在即，第一个选择飞往的目的地是泰国曼谷。这么一来，新加坡飞往曼谷的这条航线，成为了惠旅航空与亚洲航空正面交锋的首个战场。

　　不断有人问我，哪家公司比较好？谁的票价比较便宜？这两家标榜“廉价”的航空公司又可以比其他“非廉价”的航空公司便宜多少？


票价和订票方式


　　为了吸引搭客，亚航经常会推出令人咋舌的超值特惠价。目前，亚航就以大约新币38元起的价格出售部分座位，不过五六月份的38元机位几乎都已经被预订一空。要订到这么低廉的机票，就必须把行程安排在至少两三个月之后，而且最好是星期一到星期五的航班，机会就比较大。如果是很迟才订亚航机位，搭客很可能会买到最昂贵（约148新元）的票价。另外，要记得亚航的票价全是以单程计算的。

　　惠航曼谷启航促销票订为新币138元。促销票必须在5月31日前使用，促销期一过，曼谷的往返票价就分为199元和250元两种。前者在订票后必须在24小时内发票，一旦发了票，要改行程就必须另外付费。后者则较有灵活性，可以等到出发前的三天才发票，比较适合那些无法提早确定行程的搭客。

　　多数亚航和惠航的搭客都会选择直接在互联网上订票。亚航的票可以在指定的新加坡邮政公司买到，惠航的机票则能在惠航大巴窑中心的惠航总部买到。惠航也与本地一些旅行社合作，授权它们卖票和旅游配套。相信多数求便利的搭客会选择向旅行社购买加入了酒店住宿的配套。


机舱内的感受


　　惠航与亚航最大的差别便是，惠航坚持给搭客指定座位，省去搭客早早就挤在候机室等着排队登机的麻烦。

　　亚航向来不指定座位，谁先登机，谁就先选座位坐下。不指定座位，其实并不会造成混乱，只是对首次乘搭亚航的搭客而言，会有一点压力，多搭一两次就会习惯的。另外，亚航的载客量平均为六成，就算没有早早去排队登机，上机后还是可以找到称心的座位。

　　惠航和亚航都选择皮质座位，非常舒服。惠航的伸腿空间较大，比亚航多出三英寸。新加坡至曼谷航程约2小时20分钟，你就要自己问，在不到三小时的航程内，这多出的三英寸空间，到底有多重要了。

　　两家航空公司都强调要给予搭客不一般的飞行感受，整体来说，服务员较传统航空公司年轻有活力，服务也比较亲切。

　　惠航派出清一色的空姐，公司挑选的多是性格活泼的女子来为搭客服务，希望提供一种随意、自然又清新的感受。亚航的空中服务员男女皆有，男生多高大英俊，女生则笑容可掬，亚航空姐和空少多是泰国籍，英语都很流利。

　　另一差别就是免费机舱食物，惠航在这条航线上为搭客提供橙汁、面包和饼干。其他的汽水和啤酒则一律卖2元。亚航并不提供免费餐饮，搭客想吃东西，就得自己掏腰包来买咖啡或三文治，售价从一两新元起。

　　惠航的另一号召是公司选用崭新的飞机，而亚航的飞机都已经有了一定的机龄，不过亚航在买了旧飞机之后都是经过“翻新”才使用。

　　新机和旧机，搭客在机舱内基本上感觉不出太大差别，但是飞机起飞后，大家还是会觉得亚航的引擎声会稍微比惠航的引擎声大声一点。别担心，这些廉价航空都说，它们什么都可以减，唯有安全不敢减。

　　亚航的行李托运重量比惠航少五公斤。如果你到曼谷去的原因是购物，选搭亚航时就要注意托运行李的重量。

　　其实，真的是青菜萝卜，各有所爱。两家廉价航空产品模式并不相同，重点是哪一家提供的产品更符合你的需求。身为一个明智的消费者，就必须先了解产品，清楚自己购买的是什么样的服务。

May 3, 2004

Cathay Pacific joins other traditional players in fight against budget airlines

By Chua Kong Ho

HONG Kong-based carrier Cathay Pacific showed over the weekend that it can defend its turf against would-be budget competitors by unveiling a $389 free-and-easy travel package that includes two nights accommodation in Hong Kong.

The Cathay package requires travellers to fly by May 27. The package’s introduction coincided with Valuair’s launch of sales of its Hong Kong flights.

But good luck with trying to get those seats, says Valuair executive director Jimmy Lau.

“Those are lead-in fares. But whether there are enough seats and you can get those seats is another matter,” he told Streats yesterday, adding that major carriers typically set aside a portion of their seat inventories to sell at low prices.

“All the major carriers practice this to grab attention.”

The Singapore-based budget carrier, which is scheduled to launch its first flights to Hong Kong this Friday, charges $300 for a return fare during its three-month promotion period.

Valuair’s shareholder and travel agency partner Asiatravel.com sells an equivalent three-day, two-night free-and-easy package for at least $420.

Cathay’s pre-emptive move mirrors that of Singapore Airlines, which advertised return fares of $198 on Singapore-Bangkok route, a day after Malaysia’s no-frills airline AirAsia started its flights on the same route. The SIA fares compared well with AirAsia’s average $90 one-way fares.

The move by major carriers such as Cathay and SIA to lower prices in the face of competition underscores a point often missed by analysts and commentators when talking about the threat of budget airlines to the major carriers: The big boys know how to cut prices and can sustain a price war for far longer than the independent start-ups.

It’s not just the home carrier that is advertising eye-catching fares.

Garuda Indonesia’s Singapore-Hong Kong economy fares can be had at $284, lower than Valuair’s promotional fares of $300, a check with online travel portal Zuji showed.

On the Jakarta route, Valuair is promoting its return fares to Jakarta for $138.

But travellers can pay $24 more and fly on Emirates Airways, ranked No 2 behind SIA in the annual Skytrax passenger poll.

But Valuair’s Bangkok fares, also at $138, remain for now the lowest fixed fares in the market. All prices quoted are excluding fees and taxes.

Valuair said its fares will be 40 per cent below the restricted fare charged by full-service airlines.0 per cent below the restricted fare charged by full-service airlines.

Copyright © 2003 Singapore Press Holdings Ltd. All rights reserved.

The most important consideration has to be the "fixed price" rather then the promotional price. Makes me wonder what happens should valueair decides to hold a promotion?? :D

April 29, 2004
Valuair’s ample legroom gets my vote

By CHUA KONG HO

THE cabin crew was, as expected, the centre of attraction during Valuair’s media preview flight yesterday. Not even a singing Captain K C Leong, who did a few lines of a Sinatra song, could divert attention from the young, lively, women for long. They were the centre of attention, with journalists busy photographing them or furiously scribbling notes about them during the hour-long flight to nowhere.

But another feature which quietly stole the show, for me at least, was the legroom of each seat – all 32 inches of it. Now, you may wonder what’s the big deal about a few inches. Trust me, if you’ve travelled enough times in cattle class, an inch is a big deal on flights longer than two hours. In Valuair’s case, it has three inches more stretching room than other budget airlines. Economy-class seats on Singapore Airlines and Cathay Pacific also have 32-inch seat pitches.

But back to the cabin crew. They were young and their makeup colours – sponsored by Maybelline, one of Valuair’s co-marketing partners – were bright. They were also sensibly dressed in dark blue polo tees and khaki pants or skirts and sneakers. I am one of those oddballs who just can’t figure out how stewardesses can work dressed like geishas. So kudos to Valuair for daring to break with tradition. I also noted that the Valuair crew members don’t speak with an “international” accent. Neither do they break into Singlish.

Unlike other budget carriers, Valuair serves food. On yesterday’s flight, light snacks were served. I had a chicken sausage bun, vacuum-sealed orange juice and a packet of Oreo cookies. I wolfed down the snacks as I had not had breakfast when I arrived at Changi Airport at 9am for the 11.30am flight.
Valuair serves more filling meals on longer flights. The crew, true to Valuair’s “smiles ahead” motto, were all pearly whites the entire flight. They also surprised a few passengers with inflight birthday celebrations a la Hard Rock Cafe.

Valuair is working on more themed flights as part of its marketing strategy. Executive director Jimmy Lau assured me that he would launch special Hong Kong Sevens and Singapore Sevens flights next year for rugby fans. Valuair has also sold out its all-women flight on May 21 to Hong Kong. If yesterday’s preview was anything to go by, the women who managed to get tickets for that trip could be undergoing mid-flight makeover sessions.

What’s next for Valuair? Themed flights for regional gay pride festivals? Well, don’t discount it. After all, Australia’s Qantas Airways is promoting Down Under as a holiday destination to Los Angeles’ gay and lesbian community.

Would I recommend Valuair to friends? Let’s just say I’ve been on more uncomfortable Y-class flights on so-called prestigious, “full-service” carriers. So I think the major carriers have a fight on their hands. At least in winning the hearts and wallets of the likes of me – a long-suffering member of the cattle class.

http://www.asiaone.com.sg/archive/streats/20040429/pics/20040429_story1.jpg

Its a Blood Bath?? :D

MAY 5, 2004

Hong Kong air ticket price war?

SIA joins in the fray with $368 offer, but hours later, Cathay slashes prices to as low as $300 to match Valuair's price

By Karamjit Kaur

SINGAPORE Airlines (SIA) yesterday joined a 'price war' between Cathay Pacific and Valuair on the Singapore-Hong Kong route. Within hours, Hong Kong carrier Cathay responded by further slashing its prices to a level not seen in at least four years.

Cathay is now offering two new fares. One is a single round-trip ticket to Hong Kong for $300 - the same promotion fare that Singapore's first budget airline, Valuair, is charging for its Hong Kong flights that start on Friday. The Cathay offer is for limited seats on its early morning flights. It also requires passengers to book by next Wednesday and travel by the end of June, which includes the school holiday season. Two, it is also matching SIA's fare of $368 for passengers travelling in pairs.

Cathay's decision to cut its ticket prices came less than 24 hours after SIA advertised in newspapers its fare for travel on or before May 25. SIA's regular fare is $500. The SIA price was $21 less than Cathay's $389 offer, which it had unveiled last Friday. This offer by the Hong Kong carrier, which is still available, also includes a two-night hotel stay based on twin-sharing for travel by May 27.

Earlier, there was no special deal for travellers who wanted to buy only the air tickets, Mr James Ginns, the airline's area manager for Singapore, told The Straits Times. 'So we have now decided to offer round-trip tickets at $368 each for passengers travelling in pairs.' Like SIA, Cathay also requires the trips to be made on or before May 25.

Is Cathay starting a price war? Mr Ginns said: 'As early as March, we were offering round-trip tickets to Hong Kong for as low as $350 if four people travel together and $380 for those who go in pairs. This was before Valuair even announced its fares.'

Valuair started selling seats for its Hong Kong flights last weekend and so far, the response has been 'very good', said its executive director, Mr Jimmy Lau. He noted that unlike the major carriers which are selling only a portion of their seats at the discounted fares, every passenger on Valuair's 162-seater aircraft will pay the same $300 fare until the promotion ends on June 30.

For reasons of competition, neither SIA nor Cathay would say how many discounted seats are up for grabs. But both Mr Ginns and Mr Wong Hong, SIA's area vice-president for Singapore, assured passengers that there will be enough seats to meet demand. Mr Wong said: 'Of course we are not looking at four or five seats.'

Analysts note that since Valuair and Malaysia's AirAsia entered the scene, fares to Bangkok and Jakarta have also fallen. Valuair starts flying to Jakarta from Monday and AirAsia flies twice a day from Singapore to Bangkok.

Yesterday, SIA also unveiled a $168 promotion return fare, $32 less than its regular fare of $200, for its night flights to Bangkok and Jakarta. A Valuair ticket to either city costs $138 and the cheapest AirAsia ticket for its Singapore-Bangkok flight is $100.

Mr Wong said: 'In this business, and indeed in any business, you have to constantly watch your competitors to see what they are offering. It does not matter whether it is a budget carrier or a full-service airline. Competition comes from all sectors.'

Mr Lau is confident that budget carriers can survive even if the full-service carriers flex their muscles. He said: 'Valuair's costs are lower and we will definitely give them a run for their money.'

giordano air stewardesses! :lol:

Just when we tot Valuair was the cheapest and SIA the most expensive....

How they compare

ROUND-TRIP Hong Kong fare

Garuda - $283
Travel by July 31 and return within 14 days.

Cathay Pacific - $300
Booking by May 12, travel by June 30 and return within 14 days. A minimum two-day stay is required.

Valuair - $300
Travel by June 30.

Singapore Airlines - $368
For two people travelling together by May 25. Tickets must be issued within three days after booking or by May 20, whichever is earlier.*

China Airlines - $377
Travel by Oct 31 and return within one month.

Thai Airways - $418
Travel by Sept 30 and return within 30 days. A minimum two-day stay is required.

Malaysia Airlines - $492
Travel by May 31 and return within a month.

Information from Zuji travel portal and newspaper advertisements

* Also offered by Cathay Pacific

:eek: :eek:

hehe i told you sia isn't necessarily expensive..

You might want to compare its frequency as well....(information from Changi Airport web's flight planner)


How they compare

ROUND-TRIP Hong Kong fare

Garuda - $283 1 daily flight
Travel by July 31 and return within 14 days.

Cathay Pacific - $300 5 daily flights
Booking by May 12, travel by June 30 and return within 14 days. A minimum two-day stay is required.

Valuair - $300 1 daily flight
Travel by June 30.

Singapore Airlines - $368 5 daily flights
For two people travelling together by May 25. Tickets must be issued within three days after booking or by May 20, whichever is earlier.*

China Airlines - $377 1 daily flight
Travel by Oct 31 and return within one month.

United Airlines - $490 1 daily flight

Thai Airways - $418 (transit at Bangkok International)
Travel by Sept 30 and return within 30 days. A minimum two-day stay is required.

Malaysia Airlines - $492 (transit at KLIA)
Travel by May 31 and return within a month.

Royal Brunei Airlines - $410 (transit at Bandar Seri Begawan)


Information from Zuji travel portal and newspaper advertisements

* Also offered by Cathay Pacific

Information about United Airlines and Royal Brunei Airlines are from Chanbrothers website.

There is an error in your frequency for SIA.....they have the exact same frequency as Cathay lah. :D

There is an error in your frequency for SIA.....they have the exact same frequency as Cathay lah. :D

I'll check again....

Frequency Corrected.:D
Er...sory sory..another correction...

How did u get 8 flights per day for Cathay? I coundted only 4 flights per day! SIA is 5 per day..which is correct. :D

Er...sory sory..another correction...

How did u get 8 flights per day for Cathay? I coundted only 4 flights per day! SIA is 5 per day..which is correct. :D

Go to flight planner:

Origin: Singapore Changi
Destination: HKIA
Prefered airline: Cathay

And you'll see there are 5 flights......

Confusion there as I didn't see the timing....apologise for that.

Go to flight planner:

Origin: Singapore Changi
Destination: HKIA
Prefered airline: Cathay

And you'll see there are 5 flights......

Confusion there as I didn't see the timing....apologise for that.
So now it it back to 5 flights lah? So I was correct when I said SIA and Cathay have the same number of flights! :D (thanks to silly air rights controls...)

So now it it back to 5 flights lah? So I was correct when I said SIA and Cathay have the same number of flights! :D (thanks to silly air rights controls...)

Yes right....made the mistake cos they were showing 2 flights for the same timing because cathay and american airline code share. :)

Btw, did you guys know the most busiest air traffic in changi is from Singapore to jakarta with 27 flights a day !

SQ have 9 flights a day to Jakarta, Garuda 8 times, KLM,Lufthansa,Air france, emirates, Kuwait airways,Lion air (4 times), Philippines airlines, Thai airways, Cathay, etc and a week from now...Valuair :lol:

Cheers

Btw, did you guys know the most busiest air traffic in changi is from Singapore to jakarta with 27 flights a day !

SQ have 9 flights a day to Jakarta, Garuda 8 times, KLM,Lufthansa,Air france, emirates, Kuwait airways,Lion air (4 times), Philippines airlines, Thai airways, Cathay, etc and a week from now...Valuair :lol:

Cheers

Which is why airfares are getting cheaper and cheaper for the Singapore-Jarkata route.....:D

Time is GMT + 8 hours
Posted: 05 May 2004 2055 hrs

By Asha Popatlal, Channel NewsAsia

SINGAPORE : Singapore's first budget carrier, Valuair, has taken to the skies with its inaugural flight to Bangkok.

And it looks like passengers can expect a price war, not just among budget carriers but also the full-service airlines.

Major carriers are already feeling the impact of these low-cost carriers and their cut-throat prices.

Before Valuair's first commercial flight, there was a bit of song and dance by the cabin crew.

Spirits were high and there was plenty to celebrate.

It is a new airline with new prices to match -- from S$138 for a return ticket to Bangkok or Jakarta, and just S$300 return to Hong Kong.

So it is no wonder Mr Chong Fah Cheong, the first passenger to check in, was smiling.

"Since I'm paying that kind of price, why not? If there are alternatives, all the better for me," one passenger said.

"It's a new airline for me, so I just want to try it out. I guess maybe because we are paying less than normal, expectations are not so high," another said.

But there are high expectations that ticket prices for full-service airlines will also come down, especially with Cathay Pacific and SIA recently announcing lower fares to Hong Kong of between S$300 and S$368.

But can full-service airlines keep up these prices?

Valuair chairman Lim Chin Beng said, "I think it's a knee-jerk reaction because they cannot bear to see low prices, lower than theirs. It is a show of force, a show of strength but my question is if they manage to kill the budget airlines, then obviously their prices will go up again. So, is that in the interests of the travelling public?"

Mr Lim, who confessed to being surprised by the price cutting at other full-service airlines, felt they would be better off competing with each other rather than against a budget carrier.

He added that based on his past airline experience, such price cutting, if widespread, may not be sustainable for the big boys, who could very well end up losing money.

But the question for passengers must surely be, just how much lower can the fares go after the promotional period is over?

Valuair, for one, is keeping its cards close to its chest and will only say they will be looking at what other airlines are doing and keeping their options open.

Valuair will start flying to Hong Kong from Friday and to Jakarta from Monday. - CNA

Copyright © 2004 MCN International Pte Ltd

Valuair is pretty much like Silkair in my opinion, they still offer meals but i have no idea if Valuair will offer IFE like Silkair.

Babystan09, yeap it can get low as $50 by 2 years from now, as many LLC will establish.

Valuair is pretty much like Silkair in my opinion, they still offer meals but i have no idea if Valuair will offer IFE like Silkair.

Babystan09, yeap it can get low as $50 by 2 years from now, as many LLC will establish.

Thanks I hope so too....:D

Babystan03

MAY 6, 2004

Valuair chief lashes out at big airlines' price cuts
SIA, Cathay should fight each other, not budget carriers

By Karamjit Kaur

THE move by Cathay Pacific and Singapore Airlines to slash fares to Hong Kong smacks of bullying tactics, said Valuair chief Lim Chin Beng, adding that the big boys should compete with each other instead.

At a pre-launch ceremony to mark Valuair's maiden flight to Bangkok yesterday, he said 'they should be watching each other and fighting with each other', rather than putting their efforts into 'losing money trying to fight with a budget carrier'.

He said this when asked to comment on Cathay's decision on Tuesday to offer $300 round-trip tickets to Hong Kong, the same promotional fare Valuair is offering for its own flights to Hong Kong, which begin tomorrow.

SIA is offering round-trip tickets at $368, if two people travel together. Its regular fare is $500.

Mr Lim, who was once deputy chairman of SIA, said: 'I'm very surprised they are doing this... It is a knee-jerk reaction and a show of force and strength.'

Still, he does not think the two flag carriers' low fares will last long 'unless they want to lose money'.

Will Valuair fight back?

He said: 'We do not believe in unhealthy cut-throat competition based solely on fares. We believe in product differentiation.'

At the end of the day, it is the product that will determine whether or not an airline survives, he said.

'We believe we have a good product. We offer some services, like simple meals and assigned seats, at a low fare. It may not be the lowest fare but it is low,' he said.

It is a concept that suits Mr Irving Low, 33, a partner at accounting giant KPMG, who was on board VF302 when it left Changi Airport at 1.50pm.

'I lived in Europe for several years and I have flown on budget carriers like Ryanair which offer no frills. It's nice to have a basic level of service and I don't mind paying a little extra for that,' he said.

Among the 162 passengers were nine journalists from Singapore. The flight took just over two hours and passengers were served a light meal of fried noodles, a small banana muffin and coffee or tea.

Also on the flight was professional triathlete Jonathan Pereira, 28, who said: 'For me, food is not a priority, especially on short flights like this one. The critical thing is good fares and convenient flight times.'

Still, if the fare was the same, he would choose a full-service airline for facilities like an in-flight entertainment system, he said.

For now, at least, it looks like a travellers' market.

Mr Trevor Williams, a venture capitalist, said: 'Each airline has its place and you choose based on your needs. If I am going on a business trip, I would probably fly a full-service airline but if it is short haul, Valuair is as good as anything else.'

Competition can only intensify as more budget carriers enter the market.

Valuair has adopted a hip and fun image and cabin crew wear polo T-shirts, trousers or skirts and sneakers.

Passengers on yesterday's flight also had a chance to win $100 StarHub vouchers, by answering simple questions about Valuair.


--------------------------------------------------------------------------------
Copyright @ 2004 Singapore Press Holdings. All rights reserved.

May 06, 2004

On the cards: N-Gage consoles, themed flights

By Chua Kong Ho

MR SUZUKI Sinichi, 30, bought a one-way ticket to Bangkok on Valuair the moment he heard that the budget airline was starting a daily service to the Thai capital.

Yesterday, the Japanese national, who teaches at a private school in Singapore, joined 137 others on the airline’s inaugural flight.

“I’m excited and looking forward to the flight. It is much cheaper than what I’m used to paying in Japan,” he told Streats at the airport yesterday.

But Valuair will have to work hard at retaining the loyalty of passengers such as Mr Suzuki.

He will be travelling on Thai AirAsia, the other budget airline currently serving the Singapore-Bangkok sector, on the return leg to Singapore.

“I don’t know whether I’ll fly Valuair or AirAsia the next time. I’ll decide after comparing the two,” he said.

Valuair must be hoping that its “some frills” concept catches on.

Streats understands that it is close to a deal with StarHub to offer 20 sets of Nokia N-Gage, the handheld gaming consoles, on its flights. It is also working on more themed flights such as an all-women’s golf package and rainbow tours.

Besides AirAsia, Valuair also has to contend with full-service carriers Singapore Airlines and Cathay Pacific, which reacted to Valuair’s offer with some bargains of their own.

SIA cut its Bangkok and Jakarta economy class return fare to $168, just above Valuair’s $138 for this month.

On the Hong Kong route, Cathay matched Valuair’s promotional fare of $300 for its evening flights and is offering a package that includes hotel accommodation that is cheaper than Valuair’s equivalent offer.

“I’m surprised at the reaction of the big boys,” said Valuair chairman Lim Chin Beng, a one-time managing director of his current rival, SIA.

“They should be watching and fighting each other instead of putting their efforts into competing with us.”

He added: “It’s a knee-jerk reaction. If they (the major carriers) want to continue to lose money, then they can continue the price war.”

Mr Lim said that while he was against unhealthy price wars, he conceded that his fledgling airline needed to watch what competitors were offering.

“We’re keeping our options open,” he said, when asked whether Valuair will cut its fares or extend the promotion period.

Yesterday, Valuair sold out its first Bangkok-bound flight, but filled only three in five seats for the two return legs. The airline needs to fill four in five seats to make money, said executive director Jimmy Lau.

Copyright © 2003 Singapore Press Holdings Ltd. All rights reserved.

MAY 7, 2004

First, Valuair offers $300 for round-trip ticket to Hong Kong

Then, Cathay Pacific announces same price for single traveller

And SIA unveils $368 package deal for one, if two go together
By Karamjit Kaur

FARES to Hong Kong continue to fall as more full-service airlines undercut each other.

The latest to enter the fray is United Airlines, which yesterday unveiled a $294 round-trip deal per person to the Special Administrative Region, if two people travel together.

It beats Cathay Pacific's $300 round-trip offer for a single traveller announced on Tuesday and Singapore Airlines' $368 package deal for one, if two people go together.

Asked if United's move to cut its fare was a knee-jerk reaction to what the other two flag carriers have done, Mr Laurence Chin, general manager of the airline's Singapore office, said: 'When deciding on fares, we look at various considerations such as market trends, aircraft loads, competition and when we feel that there is a market opportunity.'

The fierce battle for travellers to Hong Kong took off when Singapore budget airline Valuair offered a special promotion rate of $300 for a round-trip ticket until June 30. The carrier will start flying to Hong Kong from today.

On Wednesday, before its maiden flight, which was to Bangkok, its chairman, Mr Lim Chin Beng, said he was surprised by the way the big boys have responded.

He said 'they should be watching each other and fighting with each other', rather than 'losing money trying to fight with a budget carrier'.

United's Mr Chin said: 'It's the same market we're all playing in and we have to move and adjust our prices as and when we see fit.

'The market has picked up... and it's a great time for United to extend this deal to customers, especially our Mileage Plus members who can continue to accrue miles.'

It is a view shared by Mr Anthony Concil, spokesman for the International Air Transport Association, which represents more than 270 full-service airlines.

'Deciding on fares is a commercial decision that airlines make,' he said, adding that it is normal for airlines to act to 'defend their turf'.

Mr Lim is unfazed by the undercutting. He believes his model, which offers some service for a relatively low fare, is workable.

As for the promotions offered by the big boys, he pointed out that they come with restrictions.

United's latest offer, for example, is only for those who book by next Thursday and travel before the end of next month.

Asked how many seats would be offered at the discounted fare, Mr Chin said without elaborating that it would depend on the date of travel.

The carrier flies once a day from Singapore to Hong Kong.

The Straits Times understands that the number of cheap seats on each flight will vary and will depend on how full the aircraft is.


--------------------------------------------------------------------------------
Copyright @ 2004 Singapore Press Holdings. All rights reserved.

This is getting dirty now :lol:

Anyway, I do think SQ wont lose their market in SG-JKT route, as many people in Indonesia are usually SQ freaks :lol:


cheers

that's nice to hear...

MAY 8, 2004

By Karamjit Kaur

SINGAPORE Airlines (SIA) and Cathay Pacific's robust reaction to Valuair's arrival on the market - slashing fares to Hong Kong and other cities the new carrier flies to - was on the cards, aviation experts point out.

And as an old hand in the business, the airline's chairman, Mr Lim Chin Beng, should have seen it coming.

Surely, they asked, after 30 years in the business, the former deputy chairman of SIA did not expect the big players to sit idle?

Some industry pros wonder if Mr Lim may have been joking when he remarked on Wednesday that the big boys should be 'watching each other and fighting with each other' instead of 'losing money trying to fight with a budget carrier'.

Said Mr Peter Harbison, managing director of the Sydney-based Centre for Asia Pacific Aviation, which provides aviation consultancy and information services: 'Perhaps he was merely drawing attention to the fact that this is happening and it is because budget carriers are entering the market.'

Valuair is Singapore's first budget carrier.

Whatever the case, his comments highlight issues that deserve scrutiny, such as: Are the full-service carriers doing the right thing? Are they in fact being anti-competition?

How does the consumer figure in the equation? Where does this leave Valuair?

DEFENDING ONE'S TURF


THE Singapore manager for Cathay Pacific, Mr James Ginns, argues that the full-service carriers are being perfectly fair by slashing the price of their return ticket to Hong Kong. His airline lopped its usual $400-plus tickets to $300, the same as the new entrant's promotion fare.

'No one should be surprised to see a carrier like us competing in this low-cost space,' he said, adding that Cathay is merely responding to 'a market opportunity that exists'.

SIA's area vice-president for Singapore, Mr Wong Hong, defended SIA's actions by pointing out that competition is competition: 'It doesn't matter whether it's a budget carrier or a full-service airline.'

SIA is offering a $368 deal to Hong Kong per person, if two people go together.

Mr Anthony Concil, spokesman for the International Air Transport Association (Iata), which represents more than 270 full-service airlines, explained that it is normal for airlines to 'defend their turf'.

DBS Vickers aviation analyst Chris Sanda said he would not describe the moves as anti-competition unless 'they went across the board and offered all their seats at the discounted fares, but they are not'.

SIA and Cathay Pacific's promotions are for a limited time and do not apply on all flights, he pointed out.

Said Mr Harbison: 'Even if the laws of competition apply - and I'm not sure they do in this case - there's nothing to say you can't match your competitor's price.'

There is speculation in the industry that the big players' muscle flexing is to sound a warning to Valuair, and others waiting to enter the fray, that the full-service airlines will react if their markets are invaded - never mind that budget airlines create new markets.

After all, said Mr Sanda, there will be some overlap between what the newbies and the old-timers do and some switching by full-service customers to the low-cost boys.

BIGGER SKIRMISHES AHEAD


MEANWHILE, Mr Lim is holding on to his airline concept to see Valuair through, almost as if it was a talisman. The concept is modelled after successful United States budget carrier JetBlue, where some service is offered together at a relatively low fare.

To be sure, the current response from the big boys is just a skirmish. Bigger battles are ahead when two new Singapore-based budget carriers backed by full-service airlines enter the market.

SIA has a stake in Tiger Airways, and Australia's Qantas has a hand in an as-yet-unnamed airline.

Like Malaysia's AirAsia, both will offer no frills and compete based on low fares.

Hong Kong-based UBS Warburg analyst Timothy Ross, warned that when this happens, 'Valuair will find itself caught between two extremes - not being cheap enough to capture the low-end market and not having enough services to capture the high end'.

He believes the new carrier is likely to be marginalised by its budget competitors because there is 'a great appetite for travel at low prices without any frills, especially for short flights of two or three hours'.

Survival, said Mr Harbison, will depend on how religious the newbies are in their budgeting.

He said: 'In Europe, when the budget airlines came in, the full-service carriers thought that, because they were bigger and had more seat capacity, they could price just below or at the same level and they would blow the low-cost players out of the market.'

However, the no-frills gang who survived pulled through because they were able to sustain their low prices.

So far, Valuair's entry has been smooth: About 80 per cent of its seats to Bangkok on its 162-seater Airbus 320 have been sold on its twice-daily flights, until the end of this month.

Yesterday, it took off to Hong Kong about 70 per cent full, with 113 passengers on board. About the same number of seats have been sold on these flights in the next three weeks. It needs to fill 75 per cent of its seats on each flight to break even.

Meanwhile, with the promise of even better deals around the corner, no customers are complaining about the upcoming dogfights.


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Copyright @ 2004 Singapore Press Holdings. All rights reserved.

I sure hope valuair's early entry into the game will give it a slight edge...it seems the most vulnerable of the lot! :eek:

I sure hope valuair's early entry into the game will give it a slight edge...it seems the most vulnerable of the lot! :eek:

It's still hard to predict who will survive till the end.....let's keep our fingers crossed!!:D

This is getting dirty now :lol:

Anyway, I do think SQ wont lose their market in SG-JKT route, as many people in Indonesia are usually SQ freaks :lol:


cheers
SQ freaks? But arent there countless airlines flying the Sg-Jkt route? :)

MAY 10, 2004

AT LEAST one travel agent has muscled in on the budget airline action and a few dozen are trying to do the same.

Chan Brothers Travel is offering a three-day Bangkok package with a Valuair flight and hotel accommodation, starting at S$199.

SA Tours is also in talks with Valuair.

Singapore's first budget airline told The Straits Times that 30 to 40 travel agents 'of all sizes' have called in the past month, all wanting to sell Valuair tickets. Negotiations are going on, said the airline.

Valuair started flying to Bangkok on May 5 and to Hong Kong on May 7. Flights to Jakarta are due to begin this week.

Return tickets to Bangkok and Jakarta cost S$138; those to Hong Kong cost S$300.

Agents reason that while budget travellers usually buy their tickets online, they would still have to get accommodation. They figure they will not mark up Valuair's prices, but will instead do what they're best at - providing different types of accommodation and tours that are attractive to customers.


--------------------------------------------------------------------------------
Copyright @ 2004 Singapore Press Holdings. All rights reserved.

@Huaiwei Yup, there are many, but many indonesian prefer SQ because of their Krisflyer and the ontime perfomance things, well you still can try Emirates or any other european carriers like klm, air france and lufthansa if you want to be ontime...but still they choose SQ ! :lol:


Btw I heard that Valuair 1st flight to jakarta was cancelled? and the passengers were enroute to Garuda ? any info on this?

cheers

MAY 11, 2004

It calls off first flight to Indonesian capital and those over the next few days; passengers can go on Garuda instead

By Natalie Soh

BARELY a week after it took to the skies to Bangkok and Hongkong, budget carrier Valuair had to call off its maiden flight to Jakarta yesterday morning.

All flights to the Indonesian capital are also off for the 'next few days', said Mr Jimmy Lau, Valuair's executive director.

He said the cancellations were not because of technical faults with its brand new fleet of A320 Airbuses but he would not be drawn into saying if it had anything to do with the Indonesian side.

The 51 passengers on VF202 to Jakarta had to be transferred to a Garuda Indonesia flight yesterday, at no extra charge.

They found out about the cancellation only when they arrived at the airport to check in for the 8.15am flight.

All of them had paid a special promotional return fare of $138, the same price that the airline is charging to fly to Bangkok.

The cheapest ticket to Jakarta on Garuda costs about $240, according to one travel agent.

Mr Lau said that passengers booked on flights for the next few days could also be transferred to Garuda at no extra charge.

Alternatively, they can cancel their bookings for a refund.

'We will arrange it,' he said.

Jakarta was the third destination for Valuair, Singapore's first budget carrier. Flights were scheduled daily.

Valuair was set up last year by SIA veteran Lim Chin Beng, with his son Arthur, and a couple of other partners.

Singapore Airlines recently tied up with Ryanair to form a budget carrier, Tiger Airways.

Valuair entered the market saying it had no plans to compete on price alone but would differentiate itself in other ways.

Instead of keeping to the low-cost no-frills model of other budget carriers, it would offer fares some 30 to 40 per cent cheaper than those of a full-cost carrier, and some frills, such as meals.

Though it said price was not its only selling point, the launch of its flights to Hong Kong for $300 last week sparked a reaction from some full-cost airlines.

Cathay Pacific, Singapore Airlines and United Airlines were all prompted to cut their own fares on the busy route.

Yesterday, Mr Lau put a brave face on the cancellations and said the maiden flight was merely 'postponed'.

He added that Valuair's flights to Bangkok and Hong Kong were not affected, and that the company was still taking reservations for future flights to Jakarta.


--------------------------------------------------------------------------------
Copyright @ 2004 Singapore Press Holdings. All rights reserved.

Gee....that sounds serious! I hope they come out with an explaination soon!

But come to think of it...those lucky passengers got to enjoy a full-service flight on a budget air ticket?? :D

Hmm i dont think its from Indonesian side, just checked with my mate and CGk is fully ready and it has the permission for valuair....i suspect their management maybe try to think twice before joining the very massive competition between sg-jkt. Even airasia, who already well known is considering Johor Bahru - jakarta instead of sg-jkt.

If it has problem with the permission, they should settle down long before their maiden flight to jakarta and 2004 is year of indonesian open skies, so they would get the permitt easier, Yet...the big advertisements of valuair in many indonesian newspapers are already there since 5 days ago, the authority of CGK of course will notice that.

My friend is on the 1st flight from sg to jkt with Valuair, i think hes pissed off with it.

cheers

I suppose your friend has every right to be pissed.

Do you have any news articles from the Indonesian side on this issue which might offer some clues?

Hmm i dont think its from Indonesian side, just checked with my mate and CGk is fully ready and it has the permission for valuair....i suspect their management maybe try to think twice before joining the very massive competition between sg-jkt. Even airasia, who already well known is considering Johor Bahru - jakarta instead of sg-jkt.

If it has problem with the permission, they should settle down long before their maiden flight to jakarta and 2004 is year of indonesian open skies, so they would get the permitt easier, Yet...the big advertisements of valuair in many indonesian newspapers are already there since 5 days ago, the authority of CGK of course will notice that.

My friend is on the 1st flight from sg to jkt with Valuair, i think hes pissed off with it.

cheers

I don't think Valuair is thinking twice about joining the Sg-Jkt route.....if so why would they even advertised in the first place??? If they were to think twice, perhaps they might not even annouce the route in the first place???:D

Let's see what they say..... :)

Damn, cant find any news from jakarta about Valuair, but many
news about Badminton and presidential candidate ! :lol:

@babystan09 , Yeah good thinking, but hopefully it wont damage their reputation though :)

cheers

Damn, cant find any news from jakarta about Valuair, but many
news about Badminton and presidential candidate ! :lol:

@babystan09 , Yeah good thinking, but hopefully it wont damage their reputation though :)

cheers

Oh badminton....Indonesia got a lot of fine players......:D

Yeah....I hope this won't be detrimental to their reputation too.... :)

Time is GMT + 8 hours
Posted: 11 May 2004 2054 hrs

By Asha Popatlal, Channel NewsAsia

SINGAPORE : Valuair's maiden flight to Jakarta on Monday was grounded by a missing administrative process in obtaining landing rights.

But Singapore's first budget carrier hopes to ride through the turbulence and take off by next week.

It looked like all systems go for Valuair when they received their Operations Certificate from the Jakarta authorities on Sunday morning basically allowing them to operate into Jakarta.

Then on Sunday night - turbulence hit.

Valuair was told there were further administrative requirements to complete the full process of clearance.

That meant Jakarta became a "No Fly" zone and so passengers on its inaugural Monday morning flight had to be transferred to Garuda.

A team is currently in Jakarta to resolve these issues.

But why was not the problem spotted earlier?

Mr Lau said: "Meetings were going on all of last week and there were no hints that anything was amiss. The Valuair team is in Jakarta to address these issues because we have to try and find what is the missing process which at this moment is unclear to us."

Meanwhile, Valuair says it will refund or offer alternative seats on Garuda to those who have already bought Jakarta tickets.

The question is: What will this delay cost Valuair?

Financially, Valuair's tickets cost $138 while comparable fares on Garuda at the lowest promotional rates is, at the lowest, $180.

Then, there're the intangible costs. Just how forgiving will their passengers be?

"It's okay - It's only a matter of time," said one passenger.

"They should have sorted out everything, logistics and all before tickets are sold to the public," said another.

"I will still try it because it's a new airplane."

Valuair is suspending all ticket sales to Jakarta until they get their clearance but even then it will not take off immediately.

Mr Lau said: "Even if we get our approval and get over this missing administrative process, what we'll probably do is to take a further few days to re-evaluate the ground situation before we begin."

Valuair estimates the Jakarta flights will take off at the beginning of next week, at the earliest. - CNA


Copyright © 2004 MCN International Pte Ltd

Hmm interesting.....I wonder what administration problem is that?


Mr Lau said: "Meetings were going on all of last week and there were no hints that anything was amiss. The Valuair team is in Jakarta to address these issues because we have to try and find what is the missing process which at this moment is unclear to us."

Weird, why the heck until now they still think its unclear? they should know the problem once they got the "no fly zone" messages from Jakarta, isnt ?

Many indonesian spotters were in the airport and ready to get valuair 1st flight picture :lol:


cheers

Many indonesian spotters were in the airport and ready to get valuair 1st flight picture


I guess they can try their luck next week...... :)
"Valuair estimates the Jakarta flights will take off at the beginning of next week, at the earliest. "

Ya ! lets hope they really fly next week, its such a great looking airplane and its brand new jetliners too ! :D


cheers

Hmm interesting.....I wonder what administration problem is that?



Weird, why the heck until now they still think its unclear? they should know the problem once they got the "no fly zone" messages from Jakarta, isnt ?

cheers
Hmm..it seems to say in the article that the airline only knew about the "no fly zone" thing on Sunday night...one day before its flight the next day! I suppose by the time they knew it, its too late! :D

Yup, i noticed that but why until now they still unclear for what is it the problem?
I supposed when they got the messages from jakarta, it would contain explanation on why the denied the flight, right? or wasnt? :lol:

cheers

Yup, i noticed that but why until now they still unclear for what is it the problem?
I supposed when they got the messages from jakarta, it would contain explanation on why the denied the flight, right? or wasnt? :lol:

cheers
The thing is...we dont know if they were so inexperienced that they didnt know proper procedures, or they do not know that they have to get certain kinds od clearence, or was it the message from Jakarta was sent too late, or was it a combination of both?

If valueair staff are that unfamiliar with the procedures, I hope they learn a hard lesson now. They jolly well be thankful it happened on their shortest and cheapest route so far...imagine it happening to a longer-haul one! :D

The owner of valuair is ex-SIA CEO right? did he resign from SIA or got fired?

cheers

The owner of valuair is ex-SIA CEO right? did he resign from SIA or got fired?

cheers

Should be job-hop..or being "hunted"....haha.....besides valuair, he's also the chairman of Singapore Press Holdings(the largest newspaper company in Singapore) :D

Business Times - 12 May 2004

They will not be able to match low-cost airlines on price over sustained period

(SINGAPORE) Major airlines have signalled their intent to try to subdue Asia's growing fleet of low-cost carriers by drastically slashing fares in recent weeks but the budget industry is here to stay, analysts say.

The clearest indication came last week when Cathay Pacific, Singapore Airlines and United Airlines dropped their prices for a return Singapore-Hong Kong flight by more than half in some cases.

Their moves came in the same week Singapore's first budget airline, Valuair, began flying the popular Singapore-Hong Kong route at a promotional rate of $300 for return tickets. From fares previously ranging between $420 and $750, the three airlines are now offering round-trip tickets to Hong Kong priced between $294 and $368.

When asked about the timing of its price cuts, United Airlines' Singapore office general manager Laurence Chin did not give any specific reason but acknowledged competition was one.

'Various factors such as market trends, loads, competition and market opportunity come into play in determining fares,' he said. 'We are all playing in the same market and it is natural for us to move and adjust our prices according to market conditions.'

Singapore Airlines responded even more vaguely to detailed questions about its reasons for dropping prices on the route, with a spokesman referring to the company's goal of being 'competitive in every market'.

Although the major carriers may not want to say so directly, Centre for Asia Pacific Aviation managing director Peter Harbison said the major players wanted to hurt their new competitors while they were starting out.

'They certainly feel threatened by the new budget carrier movement. But it's also a very natural market response - when a new price comes into the market, other airlines will match it,' he said. 'They're also sending out the message to anybody else who wants to come into the market: We're going to make it tough for you.'

The region's pioneer low-cost carrier, Malaysia's AirAsia, said it faced similar competition from heavyweight Malaysian Airlines (MAS) when it first started in 2001.

'When we started there was a price war with MAS,' a company spokeswoman said. 'We started with domestic flights first. When we started the Singapore-Bangkok route (in March this year), MAS lowered their prices as well.'

Mr Harbison said that despite the major airlines' deeper pockets and experience in the industry, trying to crush the budget carriers while they were in their infancy was futile. 'There's no way in the world that the majors will succeed in squashing out the budget industry. It's an irresistible force,' he said.

Another aviation analyst, DBS Vickers Securities' Chris Sanda, said the major carriers will not be able to match the low-cost airlines on price over a sustained period. 'They (no-frills carriers) are able to offer tickets at much cheaper prices, and their main market is the leisure travellers,' Mr Sanda said. 'What (the big airlines) are trying to do is to narrow the perceived discount ... but the budget airlines will still be able to offer tickets at a much lower cost.'

The AirAsia spokeswoman agreed, saying the company's lower operating costs had helped it survive despite the ongoing competition with Malaysia Airlines' SuperSaver offers. 'We have one of the lowest costs in the world. Managing our costs effectively is one of the keys to our success,' she said.

AirAsia began in 2001 with just two Boeing 737-300 jets flying Malaysia's domestic routes, amid scepticism the low-cost concept would not take off with regional travellers. But it now operates a fleet of 14 Boeing 737-300 aircraft throughout Malaysia, Indonesia, Thailand, Brunei and Singapore.

Its success has sparked a slew of other local airlines, with Valuair the first of three that intend to open in Singapore to service the region. AirAsia is also hoping to set up a base in the city-state and Thailand has seen the emergence of intra-nation Nok Air. - AFP

Copyright © 2004 Singapore Press Holdings Ltd. All rights reserved.

Time is GMT + 8 hours
Posted: 12 May 2004 1951 hrs

By Asha Popatlal, Channel NewsAsia

SINGAPORE : The mystery over a missing procedure that clipped Valuair's wings and prevented it from taking off on its maiden flight to Jakarta on Monday has yielded some answers.

Indonesian authorities told Channel NewsAsia that a new procedure for foreign carriers flying into the country had just been put in.

And Valuair was the first to apply for landing rights after this development.

Both Valuair personnel and the Indonesian airport authorities have been meeting to go through the documents.

And the problem is expected to be resolved in the next few days.

Meanwhile, Valuair says most of its passengers who had bought tickets for Jakarta have taken up the option to fly on Garuda instead of asking for refunds. - CNA

Copyright © 2004 MCN International Pte Ltd

Good to hear the problem is almost solved ! :D

Anyway from the article.... Hmm i smell fishy here..not from valuair but from The indonesian side...this rules maybe made to protect the market for Indonesian carriers. I assume 24 local airlines in Indonesia are complaining about the influx of foreign carriers in Indonesia, after Airasia put the price between Jakarta - JB from only 15 dollars then Virgin Blue australia is also interested....and now this Valuair...i guess the local carriers just started complaining to the transport minister (cry like a baby :lol: ) to ask for tightening the rules on LCC procedures.

I feel sorry though, to the ship/ferry , train and bus industry after the showdown of Low cost airlines, because they lost their market to the airlines industry, so it shows the good and bad side of LLC.
I hope with these new era of air transport industry, these wont means "sacrifice" to many other transports industry too.

Amen to that ! :D

cheers

icic...I just hope that the cheapest mode of transport that can be offered to ordinary Indonesians should prevail, for they naturally would benefit? I suppose when we discuss about protectionaism, sometimes it seems like a tussle between national (and often the upper class) interests and that of ordinary citizens!

MAY 13, 2004

By Karamjit Kaur

VALUAIR, which was forced to cancel its maiden flight to Jakarta on Monday because it could not secure landing rights, should get its permit today or tomorrow.

The director of air traffic at Indonesia's Ministry of Transportation, Ms Lilin Ambaruyati, told The Straits Times yesterday in a telephone interview: 'All the papers have been submitted and seem to be in order. We're doing the final checks.'

She would not specify what held up the permit, saying only that Singapore's first budget airline had not submitted the full set of documents required for an air-worthiness certificate to be issued.

She added: 'Under the new policy which was introduced recently, all airlines have to file the documents with the Indonesian civil aviation authority.'

On Tuesday, Valuair's executive director Jimmy Lau told The Straits Times that on Sunday morning, the day before the carrier's scheduled flight to Jakarta, the airline received a faxed copy of the air-worthiness certificate. But several hours later, the team was informed there was a 'minor problem'. In the end, all 51 passengers on Flight VF202 had to be transferred to a Garuda Indonesia flight.

When asked about what appeared to be a recall of the air-worthiness certificate, Ms Ambaruyati declined to comment, saying that all was in order now.

Valuair, meanwhile, suspended ticket sales for its Jakarta flights and sent a three-man team headed by executive director Arthur Lim to the Indonesian capital to sort the matter out.

Contacted yesterday, Mr Lau said: 'Our team had a good meeting with the Indonesian authorities this morning. We hope to get the landing rights soon.'

So far, three passengers with confirmed seats to Jakarta have cancelled their bookings and have been refunded the fare, while the rest have opted to fly Garuda Indonesia at no extra charge to them.

He stressed that flights to the airline's two other destinations, Bangkok and Hong Kong, are not affected.

Valuair's round-trip promotion fare of $138 to Jakarta is the lowest in the market, but the airline faces tough competition from the full-service carriers.

There are 489 flights to Jakarta weekly.

According to travel portal Zuji, more than 10 airlines, including Singapore Airlines, Emirates and Cathay Pacific, are offering round-trip tickets at under $200.


--------------------------------------------------------------------------------
Copyright @ 2004 Singapore Press Holdings. All rights reserved.

May 13, 2004

Aseanta tie-up with Zuji travel portal will make price comparisons a breeze

By Janice Wong

Good news for air travellers: Soon you will be able to compare the fares of the various regional budget airlines in one integrated website.

Low-cost carriers usually sell tickets directly through their own call centres and corporate websites.

When the integrated website is ready, travellers will be able to plan their travel more efficiently by comparing prices and checking for seat availability on the flights.

The Asean Tourism Association (Aseanta) and Asia-Pacific online travel portal Zuji are developing the site.

Aseanta comprises public and private tourism sectors such as national tourist organisations, airlines, hotel associations, and travel agencies.

Its executive director, Mr Sebastian Lo, told Streats this week that he has engaged a European software company to design the site, expected to be ready by the year’s end.

Mr Lo said: “These smaller airlines created a new cost-conscious market that we can target to promote intra-Asean travel.

“These airlines fly limited routes to niche destinations. So putting them on the same platform will, in a way, expand their network.

“More people travelling means more business for inbound tour operators, airport transfers, hotels and tourist spots. Everybody wins.”

Zuji is also enhancing its site to allow budget airlines to list at a fee that is on par with their direct distribution costs.

Last month, Zuji’s Australian site started displaying Qantas, Virgin Blue and Jetstar domestic fares in a comparison format. Bookings can also be accepted on this site.

Zuji hopes to connect more budget airlines to its global reservation system.

Mr Martin Symes, Zuji’s commercial executive director, said: “This offers low-cost carriers an alternate, cost effective distribution channel.

“Zuji expects to make further announcements later this year.

“One fantastic element to the entry of no-frills airlines is that, through their online booking focus, they are helping to raise awareness of the ability to book and pay for travel securely online.”

These initiatives are indicative of market players eager to respond to the burgeoning budget airline industry.

Mr Robert Khoo, chief executive of National Association of Travel Agents Singapore, said travel agents welcome Aseanta’s initiative.

“Budget airlines usually sell direct to customers because they don’t want to pay commission. We want to work with them to turn the threat into an opportunity,” he said.

When ready, Aseanta’s sales model will be similar to its existing Asean Hip-Hop pass, which offers a discounted package consisting of a hotel pass, a tour pass and an air pass for the budget airlines.

Bookings would still need to be done through a travel agent after the traveller has decided his itinerary from the site.

The intention is to include not only budget airlines such as AirAsia and Valuair but also niche non-national carriers such as the full-service Bangkok Airways.

Mr Lo said that Aseanta is in preliminary discussion with Indonesia’s PB Air, Lion Air and Merpati Airlines.

Valuair executive director Jimmy Lau is keen on Aseanta’s initiative but wonders about the logistics.

“This is an interesting concept that can work, provided all parties cooperate closely,” he said.

Copyright © 2003 Singapore Press Holdings Ltd. All rights reserved.

Yeah, I should hope too the government will protect the other transport industry, not by intervening the business but by limiting the ticket price so it wont get low as bus or train tickets. Its really hard though for government to protect the national interest or the airlines industry, because in Indonesia when you fly within Indonesia you will also pay for the airport tax and national tax which will go to the government and airport authorities.... unlike bus and train industry, so it means government of course will consider in the side of airline industry. :D

There are 489 flights to Jakarta weekly.

Wow.....thats alot! :eek:

Make it 496 flights a week after Valuair resume their daily flights to Jakarta ! :D


cheers

Make it 496 flights a week after Valuair resume their daily flights to Jakarta ! :D


cheers

Wow...this is indeed alot!!!!!!

Time is GMT + 8 hours
Posted: 14 May 2004 1721 hrs

By Frankie Ho, NewsRadio 93.8

SINGAPORE : Singapore's first budget airline Valuair is hoping to launch its maiden flight to Jakarta next Thursday, 20 May.

The flight was supposed to have taken off on Monday, but was grounded because of an administrative hitch over landing rights in the Indonesian capital.

Passengers were given either a refund or a seat on Garuda for no extra charge, and ticket sales were temporarily suspended.

But the budget carrier says it is almost past this patch of turbulence.

Valuair executive director Jimmy Lau says the Indonesian authorities are processing the paperwork and landing rights should be granted in the next 48 hours.

But there is more good news for travellers.

Valuair says that for the next two or three months the budget carrier also has no plans of passing on higher jet fuel costs to passengers.

A number of full-fare carriers like Qantas and even budget airline Virgin Blue are imposing a fuel surcharge. - NewsRadio 93.8


Copyright © 2004 MCN International Pte Ltd

Thats good news indeed, no fuel sucharging, means no ticket increase ! :D


cheers

But I wonder how long they can endure this....it is quite scary watching them trying to establish themselves! :eek:

One of my friend said that , the airline is postponing their schedulled-maintenance of the plane.

Is this information valid ? :omg: :weird:

One of my friend said that , the airline is postponing their schedulled-maintenance of the plane.

Is this information valid ? :omg: :weird:
You talking about valuair?

One of my friend said that , the airline is postponing their schedulled-maintenance of the plane.

Is this information valid ? :omg: :weird:

Highly impossible.....LCC planes are on high rotation(planes are used very frequently)......hence the last thing the airline would skimp is the maintainence cost......

Airasia place a high priority on maintainence, so do valuair........

Yes. Add to that, at least Valuair's planes are completely new, so from day one, they are already of a higher safety standard, then say, buying second-hand planes.

Valuair fleets are new and their management is backup with good financial support, so i will assume their maintainance is way above people expectations about LLC. Yet, if their boss is ex SIA boss, wouldnt they copied SIA too rite? :D


cheers

MAY 18, 2004

SINGAPORE - Budget airline Valuair said on Tuesday it is offering a women-only flight to Hong Kong this week in a bid to woo female customers.

The one-time promotional service, which departs on Friday, will feature 'women-friendly perks' such as in-flight hand massages, beauty advice and heavier baggage allowances for shopping travellers, Valuair spokesman Nilesh Pritam said.

'The flight will be made up entirely of women - except for the pilots,' said Mr Pritam.

Valuair has sold 70 per cent of the 162 seats on the flight, he said.

Return tickets cost S$300 (US$174) each, and passengers can take a regular Valuair flight back to Singapore.

The airline, which launched services this month, is expected to face fierce competition from a handful of recently established no-frills carriers in the region, including Malaysia's AirAsia and Tiger Airways, a joint venture between Singapore Airlines and the founders of Europe's Ryanair. -- AP


--------------------------------------------------------------------------------
Copyright @ 2004 Singapore Press Holdings. All rights reserved.

Gee...are LCC flyers predominantly male in the first place?? Who is going to carry their huge shopping bags? :D

Gee...are LCC flyers predominantly male in the first place??

Haha...precisely why they need to attract more attention with the ladies.....:D

Time is GMT + 8 hours
Posted: 19 May 2004 2036 hrs

By Frederick Lim, Channel NewsAsia

Thai AirAsia's lucrative Singapore-Bangkok route is under threat as Valuair has started flights to Bangkok and other low cost airlines like Tiger Airways and Jetstar Asia are waiting in the wings.

But Thai AirAsia brushes off competition from the Singapore-based budget carriers as it is confident it has the lowest cost structure.

And it is even looking at adding more frequencies and destinations on the Singapore-Thailand route.

Singaporeans will soon be able to fly on Thai AirAsia to Phuket.

The budget carrier says that it has received numerous requests from Singaporeans to include their favourite destination in Thailand.

It is now studying their requests and is also looking at flights from Singapore to Chiangmai and Haadyai.

In addition, it may increase the frequency of its now twice-daily flight to Bangkok.

And Thais AirAsia is also throwing down the gauntlet to competitors thinking of undercutting its prices.

Tassapon Bijleveld, Chief Executive, Thai AirAsia, said: "We can slash price much more than any other airlines because of our very low cost. To give you an example - operating out of Singapore and operating out of Bangkok, I'm sure cost of living and cost of compensation and lots of things here in Singapore are much more expensive than in Thailand. So in that respect, we do have much much lower cost. So, it would not be the key to do it. But if anyone would challenge us, we would go for it. But we would not be the one to start it. Our worst enemy is our own cost. If we can manage our own costs - enemies? friends? Cannot harm us at all! Because once we have lower costs we can offer lower fares."

Right now the load factor for its Singapore-Bangkok route is about 75 percent and rising.

And it says the entry of Valuair to the market has not made any impact on its ticket sales.

ThaiAirAsia also says it has turned profitable in the last 2 months and should recover initial losses to break even as early as July. - CNA

Copyright © 2004 MCN International Pte Ltd

hey Valuair girls are hot man... theres one looks like cecilia cheung :lol:


cheers

Watch out Guys! starting this june Star air (another indonesian airlines) will fly to Changi and KL daily ! :D

i got the news from cybertravel, http://cybertravel.cbn.net.id/detil.asp?kategori=News&newsno=824 Is indonesian, but you just figured it out by the topic :D


updated: they gonna use Boeing MD-83, newer and longer than lion air's md-82.


cheers

Watch out Guys! starting this june Star air (another indonesian airlines) will fly to Changi and KL daily ! :D

i got the news from cybertravel, http://cybertravel.cbn.net.id/detil.asp?kategori=News&newsno=824 Is indonesian, but you just figured it out by the topic :D


updated: they gonna use Boeing MD-83, newer and longer than lion air's md-82.


cheers

That's excellent news......I hope there will be more to come......:D

MAY 20, 2004

Valuair and Thai AirAsia have no plans to add surcharge as mainstream carriers have done on certain routes

By Karamjit Kaur

JET fuel prices are sky-high, but they may prove a boon for two budget airlines operating out of Singapore in the dogfight to win passengers from the big boys.

While the likes of Singapore Airlines (SIA), Cathay Pacific Airways and Qantas have slapped fuel surcharges on some airfares amid the oil price hike, both Valuair and Thai AirAsia said yesterday that they have no plans to introduce the extra charge.

Thai AirAsia's chief executive officer, Mr Tassapon Bijleveld, said that while there is an 'opportunity' for his carrier to impose a surcharge as well, the airline 'will not take it up'.

And Valuair executive director Jimmy Lau told The Straits Times: 'We will continue to monitor the situation and if we do impose a charge, it will be as a last resort.'

Oil prices have soared about 28 per cent over the past 12 months, putting pressure on airlines.

The big names also face pressure from nimble, low-cost carriers setting up in the region.

Indeed, new entrant Thai AirAsia - a joint venture between Thailand's Shin Corp and Malaysia's AirAsia - said it has contractually fixed the price for 80 per cent of its fuel requirements for the rest of this year in advance.

'Fuel is about 30 per cent of our costs, and if it fluctuates 1 per cent, it will hit us,' noted Mr Tassapon, who met reporters here yesterday after a welcome ceremony for the airline organised by the Civil Aviation Authority of Singapore.

But he added: 'We have hedged our fees and it won't affect our costs. It won't affect our fares at all.'

Thai AirAsia's maiden flight to Singapore was in February and it now flies twice daily from here to Bangkok, with about 70 per cent of seats filled, Mr Tassapon said.

Its load has not been affected by Valuair, which started flying twice a day to Bangkok two weeks ago, he said.

Valuair has a round-trip promotion fare of $138 to the Thai capital, while Thai AirAsia has offered 10,000 one-way tickets for the same route at $45.

To break even, the Thai carrier, which flies to eight destinations including seven in Thailand, needs to fill an average of 62 per cent of its seats on all its flights.

On expansion plans, Mr Tassapon said the airline is considering flying from Phuket or Hat Yai to Singapore.

As for increasing the frequency of flights between Bangkok and Singapore, he said the plan is to wait 'a few more months' and size up the impending competition, before deciding.

By year-end, Singapore will be home to two more budget carriers - Tiger Airways, in which SIA has a stake, and an as-yet- unnamed airline backed by Qantas.

Copyright @ 2004 Singapore Press Holdings. All rights reserved.

Watch out Guys! starting this june Star air (another indonesian airlines) will fly to Changi and KL daily ! :D

i got the news from cybertravel, http://cybertravel.cbn.net.id/detil.asp?kategori=News&newsno=824 Is indonesian, but you just figured it out by the topic :D


updated: they gonna use Boeing MD-83, newer and longer than lion air's md-82.


cheers
Damn...the article is in Bahasa Indonesia! :D

Is it a LCC or a full-service carrier selling its ticket cheap like Lion air?

Its full service like lion air, but their services and perfomance are way better than Lion air ! :D

cheers

MAY 26, 2004

By Karamjit Kaur

SOME of the co-operatives under the National Trades Union Congress (NTUC) umbrella are considering putting their money into Valuair, Singapore's first budget airline.

In response to queries from The Straits Times, an NTUC spokesman said yesterday that labour chief Lim Boon Heng had facilitated a recent meeting between representatives of the interested co-operatives and the airline.

She would not say which of the 10 co-operatives were keen but added that the NTUC would not be involved in the negotiations.

The spokesman said: 'Co-operatives may invest in commercial companies, but the investment decision lies with the management and board of directors of each of the co-operatives.'

As for parent companies and their affiliated unions, investing in the airline is not an option, she said, adding that by law, unions are not allowed to invest in a company unless it is a trustee stock.

When contacted, both Mr Tan Kin Lian, who heads NTUC Income, and Ms Cecilia Tan, chief executive officer of NTUC Healthcare, said they were not keen on the venture.

The other eight co-operatives, including supermarket giant NTUC FairPrice, NTUC Denticare and NTUC Choice Homes, could not be reached for comment.

Valuair declined comment on the discussions.

The airline, which was registered in March last year, now has 14 shareholders, including its chairman, Mr Lim Chin Beng, and its three executive directors, Mr Arthur Lim, Mr Jimmy Lau and Ms Natasha Foong.

Other investors include lawyer Sat Pal Khattar, Hong Kong-based Wuthelam Holdings and Credit Suisse First Boston's managing director, Mr Chan Wai Kheong, who has invested in a personal capacity.

Securing funds has not been a problem for the airline so far but the same cannot be said for landing rights.

Valuair, which started flights to Bangkok and Hong Kong earlier this month, has run into turbulence in its dealings with the civil aviation authority in Indonesia.

It was forced to cancel its first flight to the Indonesian capital on May 10, when the aircraft was already on the tarmac at Changi Airport with passengers on board.

After two weeks, it is still locked in negotiations to secure landing rights in Jakarta.


--------------------------------------------------------------------------------
Copyright @ 2004 Singapore Press Holdings. All rights reserved.

It was forced to cancel its first flight to the Indonesian capital on May 10, when the aircraft was already on the tarmac at Changi Airport with passengers on board.

After two weeks, it is still locked in negotiations to secure landing rights in Jakarta.
The flights are still stuck? This is really going to bleed the airline!

How large is Valuair's fleet? What aircraft do they fly?

How large is Valuair's fleet? What aircraft do they fly?
It has a "grand" total of two A320s as of today. :D

Here are the pics of them taken by heirloom. I havent tried any of these budget carriers but once I'm back I will definitely be taking full advantage! :yes:

http://img16.photobucket.com/albums/v47/sybarite/singapore/IMGP4542.jpg

It has a "grand" total of two A320s as of today. :DThank you. I just looked on their website - I'm not too convinced by their budget airline credentials - they even serve meals! Sacrilege!! Meanwhile Ryanair are ordering their new Boeing 737's minus the reclining seats, window blinds, and seat-back pockets to save money. They will only have headrest cloths if an advertising sponsor pays for them!

MAY 27, 2004

Carrier expects to get operating licence within 3 months and will have 200 staff by November; it is now recruiting here

By Karamjit Kaur

QANTAS' new Singapore-based budget airline is likely to take to the skies in November and will have about 200 staff by then.

The airline, which has yet to be named, is 49.9 per cent owned by the Australian national carrier.

It expects to get its Singapore operating licence from the Civil Aviation Authority of Singapore (CAAS) within three months, said Qantas chief executive Geoff Dixon in Canberra, Australia yesterday, when he addressed the National Press Club there.

Other shareholders of the $100 million carrier are Temasek Holdings, which has a 19 per cent stake, and two Singapore businessmen - Mr Tony Chew, 57, who owns 21.1 per cent of the shares and Mr Wong Fong Fui, 60, who has the remaining 10 per cent.

By the time the airline starts operating, it should have about 200 staff, up from 20 now, said its chief operating officer, Mr Con Korfiatis, in response to queries from The Straits Times.

In the meantime, it is looking for people to join its team.

On Saturday, an advertisement was placed in The Straits Times seeking pilots and cabin crew.

Also wanted: a chief financial officer, a chief engineer and nine managers to take care of information technology, human resources and customer services, among other things.

Applications have started coming in and interviews will be conducted in the coming weeks, Mr Korfiatis said.

Like other budget carriers, the new airline plans to concentrate on the short-haul market and fly to places within five hours of Singapore.

But it is keeping mum on possible destinations.

It plans to start with four leased aircraft.

Its fleet will comprise of either Boeing 737-800s or Airbus A320s, and is expected to grow to more than 20 within three years.

In Singapore, the budget carrier will compete with Valuair - which started operating earlier this month with flights to Bangkok and Jakarta - and Tiger Airways, which Singapore Airlines has a stake in.

Temasek Holdings owns 11 per cent of Tiger, which is also looking to take off before the end of the year.

Competition will also come from Thai AirAsia - a joint venture between Malaysian budget carrier AirAsia and Thailand's Shin Corp - which now flies twice a day from Changi Airport to Bangkok.

The new carrier will be Qantas' second low-cost venture.

Jetstar, which services the Australian domestic market, started operating on Tuesday and competes head-on with Richard Branson's discount airline Virgin Blue.

Copyright @ 2004 Singapore Press Holdings. All rights reserved.

Thank you. I just looked on their website - I'm not too convinced by their budget airline credentials - they even serve meals! Sacrilege!! Meanwhile Ryanair are ordering their new Boeing 737's minus the reclining seats, window blinds, and seat-back pockets to save money. They will only have headrest cloths if an advertising sponsor pays for them!
Hehe....but Valuair isnt the only budget airline which serves (simple) meals and have assigned seats (with leather).
MEANWHILE, Mr Lim is holding on to his airline concept to see Valuair through, almost as if it was a talisman. The concept is modelled after successful United States budget carrier JetBlue, where some service is offered together at a relatively low fare.
Yeap...the lines dividing full-service and budget carriers are increasingly getting blurred as they try to practise market differentiation. ;)

Business Times - 28 May 2004

SINGAPORE - Singapore's first budget airline, Valuair, is on the lookout for new investors as it beefs up its fledging route network, a spokesman said on Friday.

The company is also hopeful it will soon be able to secure landing rights in Jakarta, resolving an administrative dispute with Indonesian aviation authorities, spokesman Nilesh Pritam said.

The dispute prevented the planned launch of Valuair's service to Jakarta earlier this month. Ticket sales on the route have been suspended.

"We will be going out for a second round of fund-raising soon as we expand our operations," Mr Pritam said.

"We believe we're an attractive proposition, not just for investors but for strategic partners," he added.

Valuair began operating May 1 and serves Bangkok and Hong Kong from the city-state. It is one of several new or planned no-frills airlines that have rushed to establish operations in Singapore over the past year.

Mr Pritam said Valuair wants to add more routes by the end of the year, but did not name the planned destinations. Executives have previously said it may serve cities in southern China, Vietnam, India and Australia.

"We're looking to fly to high density destinations that are about five hours away. We would like to fly to a few more by end of the year," Mr Pritam said.

Unlisted Valuair was founded last year by Lim Chin Beng, a former executive at state-linked Singapore Airlines.

Its first round of fund-raising raised $33 million.

Copyright © 2004 Singapore Press Holdings Ltd. All rights reserved.

Business Times - 28 May 2004

Tony Fernandes doesn't rule out tie-up with Temasek after AirAsia goes public

By EDDIE TOH
IN KUALA LUMPUR

THE owner of Malaysia's AirAsia has halted talks with Singapore investment company Temasek Holdings because of disagreements over the valuation of the budget carrier ahead of its initial public offer in October.

AirAsia's chief executive officer Tony Fernandes said negotiations with Temasek ended because of 'expectations on price' and he is 'juggling a lot of balls' ahead of the IPO.

'I think Temasek is an excellent partner and I have very high regard for Madam Ho (Ching), who is a visionary,' he told reporters yesterday following the launch of a service for corporate clients.

He did not rule out the possibility of teaming up with Temasek after the IPO and would not give details of the IPO.

Contacted later, Temasek spokesman Eva Ho said: 'We don't comment on our business activities.'

Although details are sketchy, Temasek and AirAsia toyed with setting up a no-frills carrier in Singapore and considered a stake sale in the Malaysian parent to Temasek.

Analysts reckon AirAsia could be worth as much as US$1 billion as it seeks public funds to expand its fleet to 36 aircraft by 2005. The two-year-old airline now operates a fleet of 17 aircraft.

An analyst said another possible complication could be Temasek's interest in two new rivals to AirAsia. Temasek, the biggest single shareholder of Singapore Airlines, recently emerged as a minority shareholder of SIA unit Tiger Airways and Qantas Airways' Jetstar Asia.

The two new budget carriers have yet to take off.

Unlike national carrier Malaysian Airlines, AirAsia won't slap surcharges on passengers to help offset rising fuel costs. Mr Fernandes said yesterday AirAsia has hedged fuel purchases until 2007 and will remain profitable even if jet fuel hits US$60 per barrel from US$44 yesterday. 'It will make other airlines cry,' he quipped.

Mr Fernandes also said AirAsia will continue to lower fares for its fast-rising passenger base. The number of passengers could hit 4 million in its next financial year ending June 2005, from 3.2 million in the current financial year.

However, he said he is still frustrated by the Singapore Transport Ministry's refusal to allow a direct bus service between the Republic and Senai Airport in Johor.

Singapore 'should be supporting us in Senai' for channeling more tourists to Singapore, he said.

Copyright © 2004 Singapore Press Holdings Ltd. All rights reserved.

Hehe....but Valuair isnt the only budget airline which serves (simple) meals and have assigned seats (with leather).

Yeap...the lines dividing full-service and budget carriers are increasingly getting blurred as they try to practise market differentiation. ;)"Relatively low fares"? Nah we want them cheap! There are countless airlines with a direct-booking website and a funky logo that masquerade as "no-frills" but only a few (like Ryanair) that actually live up to the hype. I'm not interested in these fake budget airlines - they don't understand what the revolution is all about. They are still half-clinging on to the days of airline glamour with pretty hostesses sashaying down the aisles distributing service on the house (on your airline ticket price). What I want is a no-frills airbourne bus service. I'm a low fares fundamentalist!! :yes:

Jet Blue's prices are more than double Ryanair's over comparable distances.

i agree!

Ryanair is popular for it´s low fares, but often tax are not included.

German budget airlines:
Hapag Lloyd Express - price range begins at 19,99 ? (one-way-ticket, inkl. tax)
Condor - brandnew budget airline which is the first german budget airline which offers transcontinental flights (price range starts at 99 ?, one-way-ticket, inkl. tax). Also european flights (minimum: 29,99 ? inkl. tax)

Germanwings
Air Berlin
Deutsche BA
Germania

Ryanair is popular for it´s low fares, but often tax are not included.?? You always have to pay taxes. On the Ryanair website they quote taxes as soon as you have selected your preferred times. It's better that way because it's easier to tell the cheapest tickets before taxes are added at the end.

I know that I have always to pay taxes. What I mean is, that Ryanair makes advertisements with their "only 9,99 euro" and then say in very small letters that taxes are not included. And these taxes are often threetimes higher than 9,99 euro.
For me as a customer it is more important what I have to pay AFTER taxes are added.
But of course for all budget lines is one big rule: You have to be the first to get the cheapest fares (with or without taxes) :)

Edit: Damn, the forum does not know the euro-sign. :wallbash:

Valuair tickets to jakarta are sold out until june 5 ! just checked the website and try to book..it says..its fully booked. :bash:


cheers

Valuair tickets to jakarta are sold out until june 5 ! just checked the website and try to book..it says..its fully booked. :bash:


cheers
They are still selling tickets even when the flights are being negotiated? Perhaps they just displayed it as "full" for everyone who tries to book for now? :?

I guess so, but the callcentre is still accepting reservation though and Valuair ads are still everywhere....maybe they are going to start this june.


cheers

JUNE 7, 2004

Budget air terminal 'not crucial'

It won't make a major difference to low-cost carriers operating here, says Transport Minister

By Kelvin Wong

THE Government does not think that the time taken to mull over building a low-cost carrier (LCC) terminal at Changi would result in Singapore lagging behind in the race for the regional budget travel pie.

Whether Singapore decides to build the proposed facility or not is not crucial to a budget carrier's decision to fly here, said Transport Minister Yeo Cheow Tong yesterday. His remarks followed news that Malaysia had plans to build such a terminal, either at the Kuala Lumpur International Airport or in Subang.

'I don't think the presence or absence of an LCC terminal will make a significant difference to an LCC operating here. Having a terminal will help it save a few dollars but it is not a make-or-break decision. This is why Tiger Airways is taking its time and why other airlines have expressed no such interest,' Mr Yeo said.

The Government announced that it was looking into setting up a budget airline terminal at Changi in December last year but proposals sent out to carriers have so far met with lukewarm responses.

But the Civil Aviation Authority of Singapore will build the terminal if at least one airline wants it.

The authorities are now waiting for Tiger Airways to confirm its interest. If it commits itself to using the terminal, construction - expected to take 1 1/2 years to complete - will begin immediately, said Mr Yeo.

'But if they find that the main Terminals 1 and 2 are better for them, then we are quite happy to go with their decision,' added Mr Yeo.

Having a dedicated LCC facility, stripped of frills such as aerobridges or VIP lounges, would mean lower airport charges for budget carriers. This would help them keep operating costs down and maintain cheap passenger fares. At the main terminals, budget carriers now pay the same charges as full-fledged carriers.

But that has not stopped airlines such as Valuair, Thai AirAsia and Indonesia's Lion Air from flying out of Singapore.

Speaking to reporters after giving out awards at Changi for an international children's art competition, Mr Yeo stressed that maintaining Singapore's attractiveness as a regional air hub was key to meeting competition from other players in the aviation industry.

This meant not just investing in infrastructure, such as an ongoing US$140 million (S$240 million) upgrading of Terminal 2, but also providing innovative services for travellers.

For example, Singapore was the first in the world to offer free city tours to transit passengers.

On an upbeat note, Mr Yeo said that he was 'very encouraged' by the airport's showing this year. About 9.43 million passengers passed through Changi Airport in the first four months, a 16 per cent jump over last year. 'If the trend continues, then this will be a record year for us and that's good news,' he said.

As a matter of fact, Changi is one of the cheapest landing/parking airport fees in Asia, along with KLIA and even cheaper than CGK jakarta. :D

cheers

Business Times - 07 Jun 2004

Low-cost airlines catalyst for change

The major airlines must react quickly to fundamental shifts says, PETER HARBISON

WHILE everyone is focused on the low-cost airline (LCA) phenomenon, we are overlooking the much more fundamental upheaval that is going on around these changes.

These changes are necessary to permit a real expansion of the LCA movement but in the process, they will also quickly transform the regulatory profile of the region.

That means much more rapid liberalisation and much greater opportunities for the major airlines too.

As a result of the changes, the Asia Pacific aviation industry has entered a massive transition phase. We are just starting to recognise that what is happening here is much more than an attack on the nature of the existing airlines by the remorseless low-cost model.

The old competitive rules are disappearing fast. The opening of aviation markets - in which low-cost operating models are one ingredient of a cocktail for rapid change - is forcing every airline and government in this region to think again.

Interestingly enough, this is not a one-way process. As always, Asia is sending a message back to the rest of the world too. We have imported a low-cost operational model which is essentially domestic. Now we are sending back a formula which works in international markets.

That's because something vitally important happened to the global aviation industry last month. Qantas announced it would establish a low-cost airline in Singapore. Why is that so important, with all the other things that are going on? By announcing that it will establish in Singapore, Qantas has shown how easy it is to 'adapt' the restrictive bilateral foreign ownership rules to permit third country operation.

In this context it is not important that it is a low-cost airline. More importantly, Qantas will be partnering with three local financial partners (including Singapore's investment company Temasek Holdings, but that's another story) - who will between them hold 50.1 per cent of the stock.

Thus Qantas is setting up what will be, for all practical purposes, a foreign subsidiary. In doing so it remains within the technical - or at least accepted - meaning of the bilateral requirement for 'substantial ownership and effective control' to be vested in nationals of the country. No other major carrier has previously established a foreign subsidiary carrier, without a local airline partner being involved. Qantas is in effect asserting a hybrid form of the right of establishment. There has been no suggestion by any of Singapore's neighbours that they will object to the new airline's designation. This could change the way the airline system works.

Singapore Airlines CEO, Chew Choon Seng, succinctly summed up these events by saying the Qantas-led Singapore LCA is a 'manifestation of the new competitive paradigm which SIA has to learn to compete with'.

All that's required for this to happen is a government like Singapore which - genuinely, not just technically, like the US - supports international aviation liberalisation. And an airline with investors who are prepared to support a foreign carrier.

But even this innovation owes a precedent to the low-cost movement. The cross-border joint venture model was pioneered earlier this year in Thailand by the star of Asia's low-cost revolution to date, AirAsia. This is an excellent case study of how low-cost airlines and liberalisation are working together. (The new Thai AirAsia is a Thai airline, with majority local ownership, but is effectively AirAsia, with some influential local financial investors).

But we are not only entering a new competitive paradigm. It is also a new high-growth paradigm.

The LCA model itself has the potential to unlock massive growth throughout Asia - and especially in China and India - which will be vital to the success of the fledgling low-cost scene in this region.

Nonetheless, when we look back in a couple of years, we will see that the wider (and in fact most far-reaching) feature of these new developments is the enormous acceleration of the liberalisation process in this region.

This will have a major effect also on the growth of network airlines.

The LCA phenomenon is the catalyst for this rapid change. The Qantas precedent should be a major eye-opener for every major airline - and airport - in the region. And globally.

The new generation of low-cost airlines in Asia represents a remarkable opportunity for national carriers, but incumbent operators are wrong in treating the low-cost emergents as a serious threat.

It is in fact a remarkable opportunity - once they are able to emerge from the state of denial which many of them have retreated to. The new low-cost, point-to-point thinking is already helping make complacent airlines much more efficient - which, by reducing their costs and prices and improving the airlines' customer targeting, will help them stimulate traffic growth well above forecast levels.

Low-cost airlines clearly are a catalytic force in the push for regional liberalisation. They are sure to become increasingly influential in terms of both airline restructuring and the pursuit of an effective government aviation policy.

But the major airlines are still in the box seat. Also, in the special nature of the Asia-Pacific market, still dominated by government regulation on international routes, the majors have the box seat in establishing their own low-cost subsidiaries.

In this, they have perhaps a year's headstart over the independents - the flag carriers will have first bite at the international routes available under bilaterals, they have no difficulty in rasing adequate funding, they can often rely on the parent airline's infrastructure (including aircraft and services) and do not have to face the usual public doubts affecting independent start-ups.

And they should take every effort to make the best of that opportunity.

The writer is director of the Sydney-based Centre for Asia-Pacific Aviation

Copyright © 2004 Singapore Press Holdings Ltd. All rights reserved.

Business Times - 08 Jun 2004

EDITORIAL
Low-cost carriers up in the air

IT is a sign of the times that Ryanair Holdings, Europe's biggest low-cost airline, shocked the market recently when it announced its first-ever quarterly loss since it was listed in 1997. Company officials blamed the threat of terrorist attacks, a weak pound sterling, rising oil prices and intense price competition.

The Dublin-based airline, whose holding company is also a shareholder of soon-to-be-launched Tiger Airways, posted a net loss of 3.3 million euros (S$6.9 million) for thethree months ended March 31 compared with net profit of 45.3 million euros a year earlier. Certainly, Ryanair faces cut-throat competition in its own market segment from the likes of both low-cost carriers, such as easyJet, and mainline network carriers such as British Airways. But then, Ryanair is not just any LCC. It is an icon of the genre, whose business model is widely emulated. So the difficulties faced by the airline should serve to remind LCCs in this part of the world that they remain vulnerable to the vagaries of an unpredictable and volatile market. No doubt, the news about Ryanair is being closely followed by the folks at Malaysia's AirAsia, Singapore's Tiger Airways and Valuair and Qantas' local start-up, Jetstar Asia.

In the last year or so, the conventional view here has been that these upstarts will start eating into regional network carriers' markets. They probably will. But LCCs in Asia face very different regulatory and operating conditions compared to their European and North American counterparts. This, together with the relatively less developed infrastructure, means regional LCCs enjoy access to fewer cheap municipal airports, compared to their European and US-based counterparts.

But certain cities are beginning to look into catering to LCCs. Singapore may soon build a low-cost terminal, while Malaysia is mulling over the idea of re-opening Subang airport as an LCC hub. However, the biggest danger LCCs faceis the regional network carriers. Regional carriers such as Singapore Airlines, Malaysia Airlines, Cathay Pacific and Thai have much stronger balance sheets and deeper pockets than their counterparts in the west.

Already, many of these mainline carriers have upped the ante on their low cost upstarts by offering full service flights to the same regional destinations at the same bargain basement prices. And they seem prepared to sustain this kind of irrational pricing for much longer than the LCCs can afford to do so.

Fuel prices

Then there is the issue of rising fuel prices. While the likes of SIA, Cathay Pacific Airways and Qantas have already slapped fuel surcharges on some airfares as oil prices soared above the US$40 per barrel level, Valuair and Thai AirAsia insist they have no plans to do likewise. And therein lies a contradiction: low cost means just that - low cost.

Stubbornly high fuel price at over US$40 per barrel does not fit into the equation of an LCC's operations, no matter how well hedged they may be. Industry experts expect 20 LCCs to be flying around the region by the middle of this decade.

It remains to be seen how many will survive for how long when faced with the double whammy of a sustained price war and high fuel prices.

Copyright © 2004 Singapore Press Holdings Ltd. All rights reserved.

JUNE 9, 2004
Valuair plans flights to China, India by end 2005
Excess rights exist in China and talks with Indian authorities should startsoon, says chairman of the budget carrier

By Karamjit Kaur

VALUAIR'S flights to Jakarta remain mired in a landing rights problem, but it is already planning to fly to China and India by the end of next year.

The budget carrier's chairman, Mr Lim Chin Beng, said yesterday that the final list of destinations is not up yet and that the team is still doing market studies.

Its stated targets are destinations within five hours' flying time of Singapore. This makes Guangzhou and Shanghai in China, and Hyderabad and Madras in India, probable targets.

'There should be no problem' with the China destinations, he said, as there are already excess rights available for Singapore carriers.

The number of flights airlines can mount and how many passengers they can carry are decided by bilateral agreements negotiated between governments.

'We expect to start negotiations with the Indian authorities soon to talk about air rights,' he told reporters on the sidelines of the two-day 60th annual general meeting of the International Air Transport Association (Iata), which ended yesterday.

But he declined to discuss the status of Valuair's negotiations for landing rights in Jakarta. It has been more than a month since the airline was forced to cancel its maiden flight to Jakarta because it did not get the rights in time.

Load factors for Valuair's Bangkok and Hong Kong services were encouraging, he said. Flights to and from Bangkok are almost 80 per cent full and, for Hong Kong, are more than 60 per cent full. To break even, it needs to fill 75 per cent of its seats.

Cargo is also doing well and now accounts for 10 to 15 per cent of total earnings, he said.

Valuair plans to launch its initial public offering in 'the next few years', said Mr Lim, adding that the airline is seeking to raise about $50 million to finance the leasing of more aircraft, from the current two, for the new routes.

Iata had Mr Lim join the chiefs of Aer Lingus, Kenya Airways, Air New Zealand and Virgin Blue on a panel to speak on making airlines more efficient.

Its message to the more than 600 delegates, from Iata's 227 airline members and other industry players, was clear: Relook your business processes, hire people who are dedicated and committed, and stay focused on what the customer wants.

Cutting costs does not mean no service, said Mr Lim. He believes that for an airline to succeed in Asia, it must provide some service.

He said: 'We cut costs in other areas. For example, we provide food but our box meals are $4 each, compared to Singapore Airlines, which I believe pays about $15 to $20 for each economy tray.'

Unlike SilkAir, which deploys six cabin attendants per flight, Valuair flies the same Airbus 320 aircraft with just four, one for each emergency exit, he said.

Aer Lingus chief William Walsh told the audience that the Dublin-based airline had slashed costs by more than 40 per cent in two years by, for example, aggressively promoting direct ticket sales and self check-in for passengers.

Iata hopes more airlines will make better use of technology and, for a start, has targeted switching over completely to electronic ticketing by the end of 2007.

Closing the Singapore meeting yesterday, Iata director-general Giovanni Bisignani said he was confident airlines would make good progress by the time Iata members gathered again in Tokyo next year for the next annual general meeting.

Copyright @ 2004 Singapore Press Holdings. All rights reserved.

Wow..a Shanghai-Singapore flight will surely wreak havoc to aviation in this area! Yoohoo! :D

Wow..a Shanghai-Singapore flight will surely wreak havoc to aviation in this area! Yoohoo! :D

Who cares about the "havoc" so long as it's afforadable.....I hope they come up with even more routes.....:D

This story was printed from TODAYonline

Crowded Thai skies could call Mayday soon

Airline boom could go bust with eight carriers – and more to come – battling for passengers

Wednesday • June 9, 2004

David Fullbrook

BANGKOK — Thailand's airline boom looks set to bust with eight airlines — and possibly more to come — battling for passengers. Different models may not be enough to save carriers from collateral damage spilling over from other sectors in a crowded market where no-frills jostle with feeder and luxury carriers.

Last December, low-cost carriers took to Thailand's skies, sending prices tumbling. Budget Malaysian carrier AirAsia's ahead-of-schedule entrance, arm-in-arm with Shin Corp, the mighty communications conglomerate owned by Prime Minister Thaksin Shinawatra's family, forced Orient Thai to launch its low-fare division One-Two-Go ahead of time.

Nok Air, Thai Airlines' new low-cost offshoot, promises to start flying trunk routes by next month. In response, AirAsia, which operates small Boeing 737s just as Nok does, has added more routes — but One-Two-Go carries more passengers using larger Boeing 757s and 747s.

Air travel was up 23.2 per cent in the year's first quarter against the same quarter last year. Phatra Securities aviation analyst Komsun Suksumrun expected airlines to sell between nine and 10 million domestic tickets this year, against seven million for last year and rising to 12 million next year.

"The impact is similar to what happened in other parts of the world. Demand has been growing through the year," said Mr Komsun. "Down the road, demand could grow even faster as AirAsia adds more services and Nok Air starts."

However, such growth may not be enough to support so many airlines. "Thailand has sufficient room to grow, but I'm not sure the market can bear more than two or three true low-cost carriers. There may be room for one more, Nok Air perhaps. Beyond that, there will be a shakeout," said Mr Ravindran Devagunam, an aviation consultant with Deloitte.

Mr Komsun agreed. "My big concern is a shakeout.

With a market growing between 25 and 30 per cent, there is only room for two to three carriers, not five or six. "Singapore hosts Singapore Airlines' (SIA) subsidiaries Tiger Airlines and SilkAir, a Qantas Jetstar sibling, ValuAir and Lion Airlines, Indonesia's leading private carrier.

"Even for Singapore, with plenty of visitors, five or six airlines may be a few too many for its 4 million residents. Nok's launch could burst the bubble."

Said Mr Devagunam: "The shakeout might take place faster, depending on when Nok Air launches. There will probably be a shakeout within six to 10 months, with two or three entrants exiting the market," If not, tough competition from Thai Airways will.

It is already competing fiercely with One-Two-Go, a response seen elsewhere in the region. "If you look at the AirAsia, ValuAir model, the minute ValuAir came out the mainline carriers cut prices to match," says Mr Devagunam.

"Will the likes of ValuAir be able to sustain that kind of price competition if they are not truly low-cost?" he asked.

One-Two-Go is responding by trying to replicate the casual walk-up approach taken by bus companies. In the works: A smart card holding personal information and a photo, replacing tickets, boarding passes and cash. Passengers will use it to pay for tickets by buying credits at convenience stores. Cardholders will receive bonus credits, special offers and more.

One-Two-Go gets a powerful marketing database. However, One-Two-Go is not prepared to destroy itself fighting a potentially unwinnable battle against well-connected AirAsia and Nok Air.

Such concerns influenced it to select 757s, as they can easily switch to medium-haul lucrative Asian chartered and scheduled routes.

Airlines reveal Achilles' heal

With an increasingly-crowded market, Thai AirAsia may need to tweak its model to survive because according to Mr Devagunam: "The AirAsia model from Malaysia may not be completely relevant."

Meanwhile, Nok's heritage may be its Achilles' heal. Thai managers, often divided by squabbles, could turn on Nok if it steals traffic, rather than picking up travellers new to flying.

Other carriers may fall victim to collateral damage as travellers come to expect low fares on all routes and tourists wise up and start booking no-frills airlines online before they depart. "The survivors will be those that know the model well and how to drive costs down. I don't have high hopes for Air Andaman, Bangkok Airways and Phuket Air," said Mr Komsun.

Air Andaman is aiming to cut a niche by developing new routes and offering a quality, frills service, akin to JetBlue.

PB Air, a small airline founded by the president of Boonrawd Brewery, continues to struggle on by focusing on secondary routes using comfortable new regional jets that come with high price tags, which make cutting fares difficult.

Phuket Air is turning to medium-to-long-haul routes, including London, while maintaining domestic services with turboprop aircraft that, while cheap to operate, are traditionally unpopular with jet-loving Asians.

Bangkok Airways labels itself "Asia's boutique airline" to justify its high prices. Whether travellers will agree in the medium-term is questionable.

Meanwhile, its Bangkok-Samui Island route, one of the world's highest yielding, is under threat. Upset that Bangkok Air is dragging its heels about opening up Samui airport — which it owns — to other airlines, the government has threatened to build a bigger airport on the island. Separation distances make that unlikely.

Meanwhile, an airport on nearby Pha Ngan Island is being considered, with Phuket Air rumoured to be lobbying hard for the rights.

If that airport materialises, Bangkok Air will be in trouble, especially as its routes to other tourist destinations around the region face growing competition.

Copyright 2004 Asia Times Online Ltd.

Copyright MediaCorp Press Ltd. All rights reserved.

JUNE 9, 2004
More seats to India with new budget airline
Travellers can expect lower fares too when Air India subsidiary takes off next April

By Narendra Aggarwal

A NEW budget airline to be launched by Air India looks set to offer major relief to frustrated travellers, who have long complained of high airfares and a shortage of seats between Singapore and India.

Singapore will be one of the first destinations for the new airline, to be called Air India Express, when it takes off in April next year. And unlike most destinations, both Air India and the new airline will fly to the Republic.

This will mean a significant increase in the number of flights between the two countries, and fares up to 25 per cent cheaper, Air India's chairman and managing director, Mr V. Thulasidas, told The Straits Times in an interview here.

Despite India's emergence as a major economic power, business and other travellers often have to book months ahead to secure a seat, or pay fares of up to $1,200 return for the four- or five-hour flight to cities such as Mumbai, New Delhi or Bangalore.

Sometimes they are forced to travel via Kuala Lumpur, Bangkok or even Colombo in Sri Lanka.

Mr Nitin Doshi, former chairman of the Singapore Indian Chamber of Commerce and Industry, expressed the frustration of many regular travellers to India.

'It's often difficult to get seats on the direct flights to New Delhi and Mumbai as demand is high. With the new budget airline adding to capacity on these routes, businessmen will find it easier to travel to these key cities at short notice,' he said.

The main problem has been landing rights. Airlines such as Singapore Airlines have been trying to launch a greater number of new flights, but so far Air India hasn't had enough aircraft to match such an increase.

Any increase in landing rights must be equal between the two countries.

Once Air India launches the budget service, it will withdraw from South-east Asia and the Middle East, but Singapore will continue to be part of its network, the Air India chief said.

'Singapore is an important and premium market for Air India. We will continue to service high-end travellers from here, while those who are more concerned about cost can opt for Air India Express' no-frills service,' he said.

The low-cost carrier will start by operating a fleet of 14 leased Boeing 737-800s aircraft, relatively small planes, with a capacity of 175 to 180 seats, all of them economy class.

Air India Express will take over Air India's routes to Bangkok, Kuala Lumpur and Jakarta.

'Air India Express will service stations within a four to five hour flying distance from various points in India. It has tremendous potential as there is high demand for lower cost, no-frills service,' the Air India chief said.

At the same time, Air India would reposition itself as a premium brand and focus on the long-haul routes to Britain and the United States, on which it enjoys 80 per cent full aircraft.

Travel abroad for business and leisure by increasingly affluent Indians is up 10 per cent a year, while travel into India is up 8 per cent a year.

'Air India has decided to add to its capacity significantly to cater to this rising demand,' said the 56-year-old civil servant, who was appointed Air India's boss last December.

Air India's current fleet strength of 34 aircraft will nearly double with the proposed acquisition of 28 new aircraft between 2006 and 2009 at an estimated cost of US$2.2 billion (S$3.9 billion). The proposal is under consideration by India's government.

Meanwhile, 10 aircraft will be leased over the next nine months to increase capacity swiftly.

'We will soon have enough aircraft to fly to wherever there is demand.'

Air India Express will be the first international low-cost airline to be launched in India. It will be a 100-per-cent owned subsidiary of Air India, which is fully owned by the Indian government.

Copyright @ 2004 Singapore Press Holdings. All rights reserved.

um india to singapore how many hours?

um india to singapore how many hours?

Depends on which city in India you're talking about.....It ranges from 2 hours(Chennai) to 5 hours(New Delhi).

oh ok.. i was thinking in the range of at least 7 hours... might be hell...

This story was printed from TODAYonline

Virgin Blue eyes key stake in SE Asia

Thursday • June 10, 2004

Australian budget airline Virgin Blue Holdings is open to forming a joint venture in South-east Asia but it will not settle for anything less than a 25-per-cent stake, its chief executive Brett Godfrey told Dow Jones Newswires.

Virgin Blue is not rushing even though full-service rival Qantas Airways has raced ahead and expects its as-yet-unnamed Singapore-based budget venture to take to the skies in November.

"Thai Airways has spoken to us and so has AirAsia," said Mr Godfrey, who added: "But the minimum stake has to be 25 per cent. What's the use of just having 10 per cent? We are not interested in doing a cheap joint venture. We have a very good brand."

Despite Virgin Blue's measured approach, a joint venture in South-east Asia appears to be an eventuality as the Australian airline plans to add routes to this region and believes it will be workable only with a partner.

Virgin Blue, which counts founder Richard Branson and Australian transport group Patrick Corp as its two biggest shareholders, has a fleet of 46 aircraft operating largely in Australia and New Zealand.

Mr Godfrey, however, ruled out partnering Tiger Airways and Jetstar, which are related to Singapore Airlines and Qantas respectively.

"That only leaves AirAsia and Valuair," Mr Godfrey said. — Dow Jones

Copyright MediaCorp Press Ltd. All rights reserved.

This story was printed from TODAYonline

Air India's budget carrier targets South-east Asia

Thursday • June 10, 2004

Air India's budget spin-off will focus on the booming South-east Asia market, Air India managing director V Thulasidas said in an interview with Bloomberg yesterday.

Mr Thulasidas, who was in Singapore for the International Air Transport Association meeting, explained his company's rationale for its budget carrier. "There is a market out there in the Middle East and South-east Asia where it is price-sensitive."

The Associated Press had earlier reported that the airline will operate 127 flights weekly from New Delhi, Bombay, Madras and some cities in India's southern state of Kerala to Singapore, Malaysia and Indonesia, as well as Dubai, Muscat, Abu Dhabi, Doha and Bahrain in the Gulf.

Likely to start operations early next year and expected to be named Air India Express, it would offer fares that are at least 25 per cent cheaper than Air India.

Copyright MediaCorp Press Ltd. All rights reserved.

Interesting that Air India will continue to fly to Singapore, while every other destination in ths region is axed?

Stan, u might want to edit your post #148 to include the full article.

This story was printed from TODAYonline

Budget carriers boost for ST Engineering

Weekend • June 12, 2004

The continued emergence of low-cost carriers is positive for ST Engineering.

China has announced the approval of two more airlines offering budget passenger and cargo services on domestic routes.

As a non airline-owned maintenance, repair and overhaul (MRO) specialist, ST Engineering's ST Aerospace unit stands to gain from the rise in low-cost carriers, which are likely to outsource their MRO operations.

ST Aerospace is already contracted to work on aircraft flown by AirAsia and Valuair, and is bidding for MRO jobs with budget carriers such as UK's EasyJet and Qantas' Jetstar Airways.

ST Aerospace plans a 15-per-cent rise in utilised capacity to cater to increased demand from the budget-carrier market and capitalise on the recovery in the travel industry. A recent tie-up with China Eastern to set up a joint venture MRO unit in Pudong Airport near Shanghai will stand the group in good stead in the fast-expanding Chinese aviation market.

We are keeping our "buy" recommendation for ST Engineering, based on its attractive dividend yield of 5.7 per cent and improved average earnings growth of 11 per cent over the next three years. Fair value is estimated at $2.22, based on 18 times its fiscal 2004 earnings, versus its historical range of 16 to 31 times.

ST Engineering shares shed 1 cent, or 0.5 per cent, to $1.95 yesterday. — Kim Eng Securities

Copyright MediaCorp Press Ltd. All rights reserved.

Er...ST Enginerring is government-linked, right?

Er...ST Enginerring is government-linked, right?

Yes, I think so....... :)

JUNE 16, 2004
Valuair gets landing rights for Jakarta - at long last
By Karamjit Kaur

VALUAIR has finally got landing rights for Jakarta, more than a month after the budget airline was forced to cancel its scheduled maiden flight to the Indonesian capital.

Indonesia's Ministry of Transportation said that all was in order and approval was granted on Monday.

Its director of air traffic, Ms Lilin Ambaruyati, told The Straits Times yesterday in a telephone interview that Valuair now has permission for one flight a day to Jakarta, seven times a week.

When contacted, Valuair's spokesman confirmed that the airline had received the official nod, but did not elaborate on plans.

Singapore's first budget carrier, which now flies to Bangkok and Hong Kong, was to have started flying to Jakarta on May 10. The passengers had paid $138 for round-trip tickets.

But at the last minute, all 51 were taken off Valuair's flight VF202 and transferred to a Garuda Indonesia flight.

In the weeks that followed, Valuair executive director Arthur Lim and other officials had been to Jakarta several times to resolve the problem.

Valuair kept Singapore's Civil Aviation Authority of Singapore (CAAS) updated on the progress of talks but the Singapore Government did not intervene, CAAS said in reply to queries from The Straits Times.

A CAAS spokesman said: 'Singapore has designated Valuair as a Singapore carrier in the Singapore-Indonesian Air Services Agreement and the Air Traffic Rights Committee has also granted Valuair the air rights to operate between Singapore and Jakarta.'

This meant, she said, that all the necessary procedures on the Government's end had been completed, and it was up to Valuair to handle its own negotiation for landing rights and flight times.

Though the problem has been settled, neither side is saying what caused the hold-up, though the Indonesians had said at one point that Valuair had not submitted the full set of documents required for an air-worthiness certificate to be issued.

The airline is now planning a publicity programme to relaunch its Jakarta service, The Straits Times understands.

Valuair will have no shortage of competition from full-service carriers and budget players, including Thai AirAsia and Indonesia's Lion Air, on this sector. There are 480 flights a week between Singapore and Jakarta.

Copyright @ 2004 Singapore Press Holdings. All rights reserved.

Valuair cleared to fly into Jakarta: Official

JAKARTA (AP): Indonesia has resolved a dispute with Singapore's budget airline Valuair, clearing the way for the carrier to launch flights to Jakarta, an official said Wednesday.

"Valuair has been granted landing rights by our air traffic regulators," said Transport Ministry spokesman Swihandoyo, who goes by a single name.

Swihandoyo said he expected Valuair to begin flying to Jakarta's Sukarno Hatta airport soon, but gave no more details.

Last month, Valuair canceled its first three scheduled flights to Jakarta at the last minute and suspended ticket sales after it was denied landing rights.

Neither Valuair nor Indonesian officials have clarified the reason for the rejection, and details of the dispute were not immediately available.

The no-frills carrier has said it plans to fly once daily to Jakarta from Singapore, with return tickets priced at S$138 (US$81).

Jakarta is Valuair's third destination. It already flies to Hong Kong and Bangkok.

Valuair was the first of three Singapore-based no-frills carriers to launch this year. The others are Singapore Airlines-owned Tiger Airways, and a Qantas-backed airline that has yet to be named.

Fantastic. But I wonder how much $$$ valueair has burnt because of this fiasco?

Fantastic. But I wonder how much $$$ valueair has burnt because of this fiasco?

More than enough to get the ball rolling..........:D

This story was printed from TODAYonline

Valuair flights to Jakarta set to take off by month-end

Thursday • June 17, 2004

Valuair — Singapore's only discount airline — which delayed its inaugural flight to Jakarta last month, will start flights to the Indonesian capital by the end of this month, said executive director Jimmy Lau.

It will also begin services to cities in southern China and add flights to other destinations by the end of the year.

"The market in China has high density and high traffic,'' he said. "We anticipate the yield to be much higher compared to Bangkok.''

The new destinations will help Valuair expand its operations in a region with intense competition from other budget and regular airlines, including Singapore Airlines and Cathay Pacific Airways.

Valuair currently flies to Bangkok twice a day and to Hong Kong daily. — Bloomberg

Copyright MediaCorp Press Ltd. All rights reserved.

Business Times - 18 Jun 2004

Valuair eyeing destinations in southern China

HAVING finally got the green light to fly between Singapore and Jakarta, Singapore-based budget carrier Valuair is now eyeing destinations in southern China.

Executive director Jimmy Lau said yesterday Valuair is 'looking at a couple of cities' within five hours' flying time of Singapore. 'There's nothing concrete yet, but we're working on it,' he said.

Destinations on the cards include at least one city in India - near Bombay - and Perth.

But first, Valuair has to get more planes. Its two leased A320s are currently fully used on twice-daily flights to Bangkok, daily flights to Hong Kong and, from June 25, daily flights to Jakarta.

'We're looking at getting two more planes by year-end,' Mr Lau said.

The two current planes are leased from Singapore Aircraft Leasing Enterprise, a subsidiary of Singapore Airlines.

Valuair, which has raised $33 million from private investors so far, plans to launch an initial public offer within a few years to raise $50 million to finance the leasing of more aircraft.

Mr Lau revealed yesterday that the load factor on the Singapore-Bangkok flights is about 80 per cent, while that on the Singapore-Hong Kong flights is about 60 per cent.

The Singapore-Jakarta flights are expected to enjoy around 70 per cent loads.

To break even, Valuair needs to fill 75 per cent of seats.

Asked about the delay in the start of the Jakarta flights, Mr Lau blamed administrative hitches. The flights were due to start on May 10.

'New application procedures were introduced,' he said.

Copyright © 2004 Singapore Press Holdings Ltd. All rights reserved.

Business Times - 18 Jun 2004

Low-cost airlines set for explosive growth in Asia
Arrival of dozens of new players will stimulate overall market growth, says top analyst

(SINGAPORE) Asia is set for explosive growth in the low-cost airline business with dozens of new entrants taking to the skies and governments racing to liberalise their airspace, a leading analyst says.

The growth will push down fares, raise demand for air travel, and prompt most full-service carriers to fight back with their own low-cost arms, Peter Harbinson, managing director at Sydney's Centre for Asia-Pacific Aviation, yesterday.

'The growth potential is actually quite enormous. What percentage of that will low-cost airlines take? God knows. But they are going to be very important in stimulating overall market growth,' Mr Harbinson told The Associated Press in an interview.

There will be 'dozens, dozens in the next five years', he added.

No-frills air travel - where companies cut perks for travellers, slice costs, trim turnaround times, and sell more tickets through low-cost channels - emerged in the United States in the 1970s and spread to Europe in the 1990s.

The business model has made inroads in Asia in the past three years, led by companies such as Malaysia's AirAsia, Australia's Virgin Blue, and recent Singapore entrant Valuair. At least two more discount operators are set for launch in Singapore later this year: Tiger Airways, backed by full-service flag-carrier Singapore Airlines (SIA), and a rival supported by Australia's Qantas Airways.

India - home to more than a billion people - has great potential provided authorities loosen the rules on which airlines may fly which routes, both domestically and abroad, he said.

'We are working on a couple of low-cost airlines ourselves there. We know of at least a half a dozen others in the Indian domestic market, that is the scale of this. And they are popping up all over the place,' Mr Harbinson said.

Air Deccan, based in the southern Indian city of Bangalore, is already offering cheap travel; Air India Express, subsidiary of flag carrier Air India, is due to start flying by year-end.

Mr Harbinson said there is growing commercial pressure on governments to ease restrictions on access to international air routes.

'The pace (of growth) will really depend on how fast the market liberalises, how quickly you can get access to new routes,' he said.

In Singapore, the entrance of low-cost players on routes to Bangkok and Hong Kong has prompted price cuts by established carriers, blurring the distinction between the industry segments.

'We aim to offer bargains whenever there are capacity opportunities,' said Wong Hong, area vice-president for Singapore at SIA.

The state-backed company now offers partially restricted return flights to Indonesia and Thailand for as little as $150, up to 25 per cent cheaper than earlier regular fares. - AP

Copyright © 2004 Singapore Press Holdings Ltd. All rights reserved.

Its about time, but can Singapore handle 4 budget carriers? if Indonesia erase departure tax this year, you will see more flights within ASEAN and that will include singapore :D

cheers

how much is the departure tax?

Approx 120 US dollar/1 million RP for indonesian citizen only, thats about 200 Singapore $

very expensive...


cheers

:! that much! is that for international flights only or domestic as well?

For international only, for domestic theres airport tax but i assume all airports have airport tax too rite. Hopefully they will scrap the departure tax, at least within ASEAN. :D

cheers

JUNE 19, 2004

VALUED SERVICE:

I would like to commend Ms Carol Phang of Valuair on her great service.

I had a problem booking a flight via the Internet. Ms Phang, who is not even in Valuair's ticketing department but its finance section, helped me to rectify the problem.

One day before departure, she had the courtesy to call and check if my booking was okay.

HERY YUSMAN


Way to go! :)

JUNE 19, 2004

VALUED SERVICE:

I would like to commend Ms Carol Phang of Valuair on her great service.

I had a problem booking a flight via the Internet. Ms Phang, who is not even in Valuair's ticketing department but its finance section, helped me to rectify the problem.

One day before departure, she had the courtesy to call and check if my booking was okay.

HERY YUSMAN


Way to go! :)

Good value-added service from valuair??? Wow, that should "valuable" to the growth of valuair......hope they keep that up.....:)

JUNE 26, 2004
In short
AT LAST, VALUAIR GETS TO LAND IN JAKARTA

VALUAIR landed in Jakarta for the first time yesterday, more than a month after the budget airline was forced to cancel its maiden flight to the Indonesian capital.

The aircraft left Changi Airport at 8.15am less than half full but Valuair executive director Jimmy Lau, who flew to Jakarta a day earlier to make sure it was all systems go, said he was 'relieved' that there had been no operational hiccups.

He said: 'It was a light load, but in the first week or so, we just want to ensure that everything goes on smoothly. After that, we will work on filling the planes.'

The airline is working with the Singapore Tourism Board to launch a publicity campaign in Jakarta in about two weeks' time.

Without disclosing the fares, Mr Lau said: 'We will offer package deals to cover the flight and hotel accommodation, and we are banking on the Great Singapore Sale to draw visitors.'

A round-trip ticket now costs $190.

Valuair, which also flies to Bangkok and Hong Kong, was to have started flying to Jakarta on May 10. But at the last minute, all 51 passengers were taken off flight VF202 and transferred to a Garuda Indonesia flight because Valuair had not got landing rights from Jakarta in time. Approval finally came through on June 14.

Copyright @ 2004 Singapore Press Holdings. All rights reserved.

Great. But they will really need lots of publicity to overcome the shaken confidence of the public?

Anyway, how does 190 compare to other airlines?

A check at www.airfares.com.sg(26/6/04)...........

Singapore-Jakarta

Airfrance- S$185

Air India-S$200

Cathay Pacific- S$190 ( max stay 14 days)

Emirates- S$194 (off peak)/ S$240 (peak season)

Garuda- S$268 (max stay 7 days)

KLM- S$195

Kuwait Airways - S$185

Lufthansa- S$240

Philippine Airlines- S$215

SIA- S$240 ( 2 person travelling, max 14 days)/ S$180 (outbound flight restricted to SQ168;inbound flight no restriction, max 14 days)/ S$210 ( 4 person travelling, max 14 days)

Thai Airways- S$180

Valuair- S$190 (min stay 2 days)

All flights allow maximun stay of 1 month unless stated otherwise; all fares stated exclude airport tax.

Hope this provide a good comparison.....:)

valuair seems to be not so budget!

babystan, you forgot Lion air 280S$ :D

Valuair is very similar with Silkair though....

cheers

babystan, you forgot Lion air 280S$ :D

Valuair is very similar with Silkair though....

cheers

I didn't mention it because the website I quoted never list Lion Air fares so thanks for filling in......:D

Hmm....pretty obvious it is not price competitive enough on the Sg-Jkt sector, and no wonder they are not filling up the planes much. Some of the full service airlines have almost comparable fairs even when its not a special discount or something!

Exactly, whats the point to fly budget airlines if you can fly with full services, PTV airlines like SIA, Cathay, etc and paying almost the same prices

cheers

June 29, 2004
SilkAir gets trim to stay ahead
From renting spares to chucking bulky manuals, airline takes on low-cost rivals

By Choong Choon Yee

WITH competition from budget carriers heating up and fuel prices still high, SilkAir is focusing on asset utilisation to improve its competitiveness.

SilkAir chief executive Mike Barclay cited a deal with SIA Engineering announced last month as a good example of the airline’s commitment to increasing cost efficiency.

Mr Barclay, 36, who assumed his current post in January, was speaking to Streats during the airline’s inaugural flight to Chongqing on June 15.

The former SIA general manager in Germany explained that SilkAir had sold its Airbus A-320 aircraft spare parts to SIA Engineering for around $20 million.

They will now pay for spares as required and avoid paying storage charges.

He said: “When you have that many assets sitting around doing nothing, it costs some money... But now, it will be a more efficient way of doing business.”

He added that the airline is also embarking on a project that he calls the “less paper cockpit”.

The idea is to reduce bulky manuals in the cockpit that contain vital information such as flight paths and airport diagrams, which weigh 20-30kg a flight, by storing the information on laptops.

He said: “Not only do we benefit from lighter weight in the cockpit, but from the safety point of view, there would be much more accuracy in terms of data entry and the planning of flights.”

He also said that SilkAir is preparing for several branding activities to reinforce its position as the “preferred” airline in Asia.

Costing “several hundred thousands”, these branding activities, beginning next month, will be “colourful and fun”, with the tagline, “Where the world unwinds”.

“It is to reinforce our position as the preferred airline in Asia. We had a branding launch last year but that was set back by Sars, and now, we decided to come back,” Mr Barclay said.

SilkAir also plans to be more “price active” this year, he added.

Half of its customers are “inter-line” passengers – customers who connect from other airlines, with about 70 to 80 per cent from SIA.

As for non-connecting passengers, he said that most of SilkAir’s routes do not appeal to budget carriers because they are either too long or too low on traffic.

He said that about two-thirds of SilkAir’s destinations generates almost no passengers because they are typically holiday destinations with small populations.

With SilkAir now flying twice a week to Chongqing, its fifth destination in China, Mr Barclay said that there are plans to fly daily in the next 18 months to two years.

There are also plans to increase the number of flights to destinations such as Xiamen and Chengdu.

He said SilkAir is currently looking at another two to three destinations in China and is studying traffic rights and flight paths with the help of the Chinese authorities.

He also sees good opportunities in India, where the airline flies to three destinations – Hyderabad, Kochi and Thiruvanan-thapuram.

“We see a good potential in India but the government has just changed, and we have to find out the what the new government’s view will be on the liberalisation that the former government had embarked on.”

Copyright © 2003 Singapore Press Holdings Ltd. All rights reserved.

June 29, 2004
Medical theme tours for Valuair
Budget carrier tying up with travel agencies, hospitals to offer surgery-cum-shopping trips here and abroad

By Janice Wong

LOCAL budget carrier Valuair director Jimmy Lau, who has been eyeing the burgeoning medical tourism market, was delighted when travel agency Meditour approached him to organise a tour package.

It was for passengers who want to correct their short-sightedness by undergoing Lasik surgery in Bangkok.

This is how what is believed to be Singapore’s first Lasik surgery tour package was created.

The seven- to eight-day tour is limited to 15 people a group, with two Valuair flights leaving on Aug 4 and 5.

Here is what is in store for participants:

On the second day, they will undergo a three-hour consultation with eye doctors at Bangkok’s Laser Vision Lasik Centre.

The half-hour operation is then performed under local anaesthesia on the same day.

Participants will proceed to Pattaya, a beach resort, for a holiday and, before returning to Singapore, undergo a post-operation check-up.

Mr Lau said: “We have identified medical tourism as a growth market. Medical tourists appreciate value-for-money and brisk yet personalised service.

“Our cabin crew will give such passengers special attention.”

Dr Kenneth Wong, a medical doctor and managing director of Meditour, said: “Valuair is known for its themed travel and Lasik is an innovative theme. I am confident of a positive response.”

Previously, Valuair’s all-women shopping flight to Hong Kong had sold out. It also tied up with cosmetic brand Maybelline to offer makeovers on board.

Mr Lau, who has assembled a team to focus on medical tourism, stressed that he is not hampering government efforts to promote Singapore as a regional medical hub.

Mr Lau said: “We also want to bring such tourists into Singapore. We are in talks with an Indonesian marketing partner and private medical groups.”

Private hospitals here are keen.

A spokesman from Raffles Medical Group said: “We are open to collaborating with omplementary industries as there are considerable synergies to be gained.”

The medical group has a similar tie-up with Singapore Airlines subsidiary Tradewinds for health-screening packages and described the response as “encouraging”.

Mr Robert Khoo, CEO of the National Association of Travel Agents Singapore, said: “I foresee more tie-ups like these as people become more health-conscious and mobile.”

Valuair’s package, including airfare, hotel stay, breakfast and transfers, costs about $3,000 for the standard Lasik procedure for both eyes.

Those who want the more sophisticated wavefront Lasik procedure pay $3,800.

Hospitals in Singapore charge between $3,500 and $5,000 for surgery alone.

Since Dr Wong started marketing the tours last Friday, no one has paid a deposit, but there have been more than 20 enquiries.

One of them was from Mr Casey Goh, 38, a bank officer.

Mr Goh said: “I am seriously considering. It is cheaper and I get a holiday. A guided tour means I don’t need to do my own research.

“I am comforted that there will be Singaporeans sharing the experience with me.

“I am not concerned that the doctors are operating on so many patients because I heard it is a short simple procedure.”

Still, some caution should be taken.

The Singapore National Eye Centre’s (SNEC) advice is for Singaporeans to think beyond price and technology.

SNEC said: “Many other factors are important to ensure optimal outcomes. The centre and surgeon’s track record, experience, quality control and accreditation need to be considered.”

Copyright © 2003 Singapore Press Holdings Ltd. All rights reserved.

Check the trip report for Valuair on airliners.net trip report forum, the staff are very friendly and the food is delicious too. :D

cheers

Business Times - 06 Jul 2004

ValuAir to tap market for 'medical tours'
Budget carrier will offer such packages on its Bangkok and Jakarta routes

By VEN SREENIVASAN

HOW about flying to Bangkok for medical treatment, then hopping over to Pattaya for some rest and recuperation before returning to Singapore?

Singapore-based budget carrier ValuAir will soon be offering packaged 'medical tours' on its Singapore-Bangkok and Singapore-Jakarta routes.

ValuAir executive director Jimmy Lau said the carrier is testing the market for demand for such medical tours.

'There is a market, and we are seeing a steady increase in traffic of people flying to Bangkok for medical treatment,' he said.

Such programmes could conceivably cover simple procedures such as botox treatment and corrective eye surgery (or lasik) to more complex medical procedures requiring over a week's stay.

Mr Lau said ValuAir is also eyeing the growing number of inbound medical visitors from Indonesia.

'Lots of Indonesians fly into Singapore for medical treatment at our hospitals here,' he said. 'We want to grow this traffic further.'

Mr Lau did not reveal which hospitals ValuAir is working with, although the more popular hospitals frequented by Indonesian visitors include Mount Elizabeth, Raffles Hospital and Gleneagles.

Meanwhile, ValuAir has tied up with Singapore-based Meditour to organise its Bangkok medical trips. A medical tour to Bangkok can cost more than $3,000, depending on the kind of treatment sought.

'Let's say you go for a lasik programme in Bangkok, then decide to convalesce in Pattaya,' Mr Lau said. 'A seven day-six night trip would cost you about $600 in airfare, land transfers and accommodation. And the medical procedure will be around $3,800. But it is all packaged together, and we make all the arrangements.'

Its medical tour packages mark another step in ValuAir's efforts to differentiate itself from its rivals. Faced with increasing competition, the airline has been attempting to market its offerings with an eye on special events since taking off two months ago.

It started women-only shopping tours from Singapore to Hong Kong last month, and is now looking at starting all-women shopping tours inbound into Singapore from its current destinations of Bangkok, Hong Kong and Jakarta.

It is also working with event organisers on inbound and outbound concert packages to its four destinations.

'We are also targeting packages for sporting events in Singapore and at our destinations,' Mr Lau added.

Copyright © 2004 Singapore Press Holdings Ltd. All rights reserved.

Business Times - 06 Jul 2004

SilkAir to follow budget carriers' lead in cutting costs
More low-season discounts, online sales on the cards

SILKAIR, Singapore Airlines' regional unit, said it plans to follow the example of budget carriers in cutting distribution and other costs, as competition from low-cost rivals stiffens.

The airline, which serves mainly tourists travelling to Asian destinations, wants to sell more tickets online and offer increased discounts on low-season fares as it faces competition in the Singapore market from three new no-frills carriers, chief executive Mike Barclay said in an interview. SilkAir's cost-cutting target is $10 million a year, spokeswoman Corinth De Cotta said.

'It's an overall cost-cutting measure to improve their bottom line,' said Janelle Chuah, an analyst who recommends investors 'buy' Singapore Airlines' shares at UOB-Kay Hian Research. It's 'difficult' to boost sales when profit per seat is falling, 'so it's important to look at costs', she said.

SilkAir's new local rivals include Singapore-based Valuair, which already flies to Hong Kong and Bangkok, and a new carrier based on the island being set up with local partners by Qantas Airways, Australia's biggest carrier. Airlines are cutting costs with added urgency as higher oil prices, which reached a 14-year record in May, eat into their earnings.

'Next year will be a stronger competitive environment for us, so this year is about getting ourselves ready,' Mr Barclay said. 'We're looking a lot at how we're selling and how we manage costs, and trying to learn from the new entrants in the market, or in the industry.'

Singapore Airlines shares closed flat at $10.90.

Full-service airlines spend too much on distributing tickets and selling through agents, unlike budget carriers which prioritise Internet sales, Mr Barclay said. He ruled out reducing SilkAir's travel agent network.

'We're still very reliant on agents, but we have to look at how we can better use the latest technology, like electronic ticketing, and at beefing up our Internet sales,' he said.

Internet ticket sales make up from 15 to 20 per cent of SilkAir's Singapore business. The figure is lower in other markets such as Indonesia, India and Thailand, where customers have less access to technology, Mr Barclay said.

Mr Barclay, who was appointed as chief executive in January, said SilkAir's decision to offer more heavily discounted tickets during low seasons this year was overdue.

'I felt at SilkAir we'd not been responsive enough in this area before, so where we have a low season period there's an opportunity to increase our loads, let's take advantage of that and have some decent pricing in the market,' he said.

Increased discounting combined with distribution-cost cuts is 'a manageable way of offering value for money without impacting too heavily on your overall yields,' he said.

SilkAir expects the toughest competition from budget carriers on routes less than two hours from Singapore, Mr Barclay said. Even so, market access for the new carriers will be limited by air agreements between Singapore and other countries.

Most of SilkAir's business comes from carrying Singapore Airlines' long-haul passengers on to their final destinations, Mr Barclay said. He said he expects to retain most of these passengers even as competition intensifies.

Mr Barclay said SilkAir is reviewing its routes to minimise fuel consumption, and reduce the effect of higher oil prices.

Oil prices have surged because of rising demand, concerns about terrorism and reduced production by refiners. Jet fuel reached US$48.65 a barrel on May 17, the highest level since November 1990 after Iraq's invasion of Kuwait. Prices have since stabilised, and closed at US$45.80 a barrel on Friday, according to oil-pricing service Platts.

If crude oil prices stay at about US$36 a barrel on average, the airline industry may lose as much as US$3 billion on international routes this year, the International Air Transport Association has said. The industry will break even if the average falls to US$33 a barrel, said the association, which represents more than 270 airlines worldwide.

Fuel is the biggest cost for SilkAir's parent, Singapore Airlines, making up about 20 per cent of total expenditure. A US$5 passenger surcharge SilkAir introduced in June is expected to cover less than half of the carrier's additional fuel costs, Mr Barclay said.

China's slowing economy will only lead to a short-term drop in crude oil prices, said Alan Mudie, chief investment officer at BNP Paribas Private Bank.

'We don't see it going back into the US$20s. Low US$30s is about as low as it will go,' Mr Mudie said. 'Over the three to five-year cycle it will trade above its recent highs, given the levels of demand for oil.'

Singapore Airlines is planning to set up its own, 49 per cent-owned budget airline, called Tiger Airways, with partners including the investment arm of the Ryan family, which started Europe's largest low-cost carrier Ryanair. Tiger Air plans to start flying in the second half of this year, achieving profitability in its first year.

SilkAir is going for a different market from Tiger Air, UOB-Kay Hian's Ms Chuah said.

'The routes that SilkAir operates are quite different and they have a niche market,' she said. 'They go to places where traffic volume isn't as high, while the budget carriers often target routes where there's high traffic, like Hong Kong and Bangkok.'

SilkAir will face its toughest competition on more heavily travelled routes including Phuket, said Chris Sanda, an analyst with DBS Vickers Securities.

'For SilkAir, every dollar counts. They're going to be under some serious pricing pressure,' he said. 'Budget airlines can't really compete on the (more) out of the way places, but they can definitely kick SilkAir on the heavier routes.' - Bloomberg

Copyright © 2004 Singapore Press Holdings Ltd. All rights reserved.

off topic, I suggest not to visit gleneagles, my dad passed away there because of wrong diagnostic by the medical team!


cheers

Friday July 9, 6:06 PM

Singapore sees better H2 ahead after qtly profit eases

By Katherine Espina

SINGAPORE, July 9 (Reuters) - Southeast Asia's largest defence group, ST Engineering Ltd. , said on Friday quarterly profit fell 6 percent, in line with with market expectations and hit by soft sales at its weapons design unit.

STE, 54-percent owned by state-owned ST Technologies Pte Ltd, said net profit in the April to June quarter fell to S$85.1 million (US$50.1 million) from S$90.7 million a year earlier. Revenues fell 5 percent to S$702.2 million.

The results broadly met the expectations of four analysts polled by Reuters who had forecast on average a S$85.5 million net profit for the quarter.

STE, which generates about half its profits from Singapore's military, said it expected a better second-half performance but was concerned about rising interest rates and fuel prices.

"The aerospace market, particularly in the U.S., continues to be uncertain with increasing concerns over higher fuel prices and rising interest rates," chief executive Tan Pheng Hock said in a results statement.

Third quarter pre-tax profit would be higher than the second quarter, he added.

STE, which designs and builds military vehicles and weapons for sale both at home and abroad, said defence sales contributed 49 percent or S$344 million of total sales in the second quarter.

The company's total order book stood at S$4.7 billion at end June, while cash and cash equivalents totalled S$1.8 billion.

Analysts expect the company to reverse two straight years of declining profits and post stronger profits in 2004 from last year.

Full-year net profit is expected to rise about 9 percent to S$355.3 million and accelerate to S$391.2 million in 2005, according to 16 analysts polled by Reuters Estimates.

Analysts said STE could benefit from the emergence of budget carriers in Asia as well as the rising trend of airlines farming out maintenance work. Its aerospace unit's customers include low-cost carriers Valuair Ltd. and AirAsia. It is also vying for maintenance contracts with UK-based Easyjet Plc. .

It stock price has risen nearly 3 percent this year, underperforming a 5.4 percent rise in the Straits Times index in the same period.It ended down 1.4 percent at S$2.07 on Friday. ($1=1.707 Singapore dollars)

off topic, I suggest not to visit gleneagles, my dad passed away there because of wrong diagnostic by the medical team!


cheers

sorry to hear that! Its an expensive hospital and we have a certain forumer here who always proclaims that he was born there....

we have a certain forumer here who always proclaims that he was born there....

Sounds familiar.......:lol:

sorry to hear that! Its an expensive hospital and we have a certain forumer here who always proclaims that he was born there....
You know what? That might explain everything about his form of existance! :D

Merpati to Recommence Bandung, Singapore Flights

BANDUNG, W Java, July 16 Asia Pulse - Indonesia's Merpati Nusantara Airlines is ready to recommence flights between Bandung, capital of Indonesia's West Java province, and Singapore by December at the earliest, an official has said.
"We will reopen the route due to the potential market," Merpati's marketing director, Toto Nursatyo, said here Thursday.

Merpati closed the route following the onset of the economic crisis in 1998.

Toto expressed confidence that the route will give the airline a big advantage as the number of passengers departing for Singaporefrom Bandung reaches about 1,500 a week.

Merpati plans to use a Boeing 737-300 for the Bandung-Singapore route, he said.

The airline will again offer direct flights between Bandung and Palembang (South Sumatra), Batam (Riau) and Denpasar (Bali) this year.

Toto said Merpati Airlines is planning to open routes from Bandung to several subdistricts in West Java using a CN-235.

(ANTARA)

It should be tough for Merpati because AirAsia is increasing their flights from JB to Bandung twice a day daily.

but I am sure merpati can offer something because if you use airasia, means you need to ride a bus to JB :D

^
I agree.....anyway thats great news for people travelling between Singapore and Bandung......:)

Here's Merpati taken at Changi Airport......
http://img73.photobucket.com/albums/v222/ylstan03/Airport/DSCN13761.jpg

wow... i've not seen such a short jet plane yet! it looks really tiny! what is it?

^
Should be B737-300

That is 737-200adv,

737-300 the one that Merpati will use for Bandung - SIN route is the same like the one that AirAsia use.

cheers

^
Thanks for the clarification........:)

737-200 Advanced is tiny.

:gunz: WHY those no-frills airways not coming to Taipei

POOR

^
But taiwan going to get hi-speed train.......:)

Need cross strait tunnel under of south china sea to run of Taiwan Shinkansen Na~~~~ :)

COOL

Taiwan already have UNI air, thats low cost airlines too. I once tried it from Bali to Taipei, using MD-90. But why bother to use no frills airlines if China airlines is also cheap and their service is quite good? :D

cheers

^ Not to forget spacious.

JULY 21, 2004
Tiger Airways launches with first plane

SINGAPORE - New budget airline Tiger Airways - an offshoot of national carrier Singapore Airlines - entered the already crowded no-frills market in South-east Asia on Wednesday, saying it has a business plan to eventually 'dominate the region'.

The airline received its first aircraft, an Airbus SAS A320, at Changi Airport today.

The launch gave scant details on its business plan, with chief executive Patrick Gan saying only that the carrier intends to be profitable in a year and will order 12 new planes by 2006.

He said the carrier would be fully operational by the end of this year and intends to fly to 'between five to 10 destinations' that are within a 4-hour flight from Singapore.

He declined to divulge more when meeting with reporters, saying he didn't want to tip his hand to competitors.

'We're confident in our model and we know we'll succeed,' he said. 'The low-cost carrier business is a tough business. ... Eventually it will be a survival of the fittest.'

Tiger, which is also partly owned by Irish budget carrier Ryanair, is the second no-frills carrier to come out of the city-state after Valuair's May start.

Another yet-to-be-named carrier formed by Australia's Qantas is expected to fly by the end of 2004 - joining a host of other budget carriers already flying over South-east Asian skies such as Malaysia's AirAsia, Thailand's Nok Air, Indonesia's Lion Air and Australia's Jetstar.

But Mr Gan said Tiger had the backing and 'unrivaled' expertise of Singapore Airlines and Ryanair, adding that in the interim, it had seconded several pilots from the national carrier.

'We have a long-term business plan to dominate the region,' he said, adding that they could offer fares up to 40 per cent lower than full service airlines.

He admitted Tiger could take away some of Singapore Airlines' business because of its much cheaper fares. Analysts say Tiger was formed partly in response to competition from airlines like AirAsia, which had been eating into margins on full-service airlines.

On Tuesday, Singapore said it would build a S$45 million (US$26 million) budget terminal specifically for low-cost airlines - which Tiger has already committed to using when it is completed in 2006. -- AP

Copyright @ 2004 Singapore Press Holdings. All rights reserved.

Finally there is some news about Tiger! ;)

I am still wondering if Qantas is serious about their budget setup thou.

^
If Qantas is serious, expect to see news of the new start-up within this two months(as they also mentioned that they are starting at the end of the year) ;)

A picture of Tiger airways from Straits Times

http://straitstimes.asia1.com.sg/latest/story/0,4390,262638,00.html?

http://straitstimes.asia1.com.sg/mnt/media/image/launched/2004-07-21/tiger.jpg

http://straitstimes.asia1.com.sg/mnt/media/image/launched/2004-07-21/tigerair.jpg

Great ! more flights in SIN JKT routes! :D

anyway, one is wondering...what the uniform looks like? it should looks sexy with that stewardess girls. :D

cheers

Geez....really hate this Tiger branding....the livery didnt change my mind! :D

New aircraft for Lion air, their 2nd B-737-400 in changi upon delivery to join their fleets.

http://www.airliners.net/open.file/618630/M/

they aim to get 20 more 737-400s :D

cheers

^
I think I saw Lion Air's B737 at changi.......:)

http://img73.photobucket.com/albums/v222/ylstan03/Airport/DSCN17501.jpg

babystan whats that registration number, i cant see clear from here. thanks buddy

cheers

babystan whats that registration number, i cant see clear from here. thanks buddy

cheers

PK LIF.......:)

More on Tiger Airways......:)

Time is GMT + 8 hours
Posted: 21 July 2004 1911 hrs

Tiger Airways takes delivery of first jet
By Chua Chin Chye, Channel NewsAsia

SINGAPORE : Tiger Airways foresees a shakeout among Singapore's budget airlines that will leave only one or two survivors, and believes it will come out tops due to its single-minded focus on cost efficiency and deep pockets.

Singapore's latest no-frills carrier took delivery of its first plane -- an Airbus 320 -- on Wednesday.

And the budget carrier showed not only its stripes but also its predatory instincts -- it wants to be not just king of the jungle, but also to clear out the jungle as well.

"There will be fallout. You can't have four or five low-cost carriers operating in the same market. History will tell you, at the end of the day, there will be one, there may be two, but there won't be five," said William Franke, chairman of Tiger Airways.

"If there's greater demand, we want to fill that demand. We don't want you filling that demand. We want to fill it ourselves," he said.

Tiger Airways chief executive Patrick Gan said, "Definitely, at the end of the day, with so many LCCs, some will survive, some will not. There will be consolidation. What I can tell you is that Tiger Airways is very poised to survive. We know that basically, we will come out tops."

Tiger Airways is banking on its pedigree; its shareholders are Singapore Airlines, Indigo Partners, Irelandia Investments and Temasek Holdings -- all with deep pockets, and expertise.

In fact, Tiger claims it is Singapore's true low-cost carrier.

"We will compete primarily on cost. The lowest cost producer is the one that dictates market price. We want to lead the market. We don't want to be the follower," Mr Gan said.

And the emphasis on cost is not just skin-deep.

"If you take a look at our staff, everyone of us has got more than one function. We multi-task, and we look at all our operations in terms of how we can operate in a more efficient manner, rather than a round-about manner. This is basically the Ryanair model," said Mr Gan.

Tiger will come face to face with rivals like Valuair, AirAsia and upcoming JetStar.

And as tigers come, this one is also ready to pounce.

In fact, Tiger Airways wants to have 10 to 12 aircraft in two years. All will be new Airbus 320 jets, for lower maintenance.

The budget carrier hopes to break even within a year and foresees passenger volume growing 25 to 30 percent each year.

Flights are to start in the fourth quarter, to destinations within a four-hour radius.

Tiger hopes to sell 80 percent of its tickets through the Internet -- but at up to 40 percent lower than main carriers, and definitely lower than its no-frills rivals.

It will operate out of Terminal 1, but will switch to the low-cost carrier terminal when it is completed in 2006. - CNA

Copyright © 2004 MCN International Pte Ltd

JULY 22, 2004

Tiger ready to take on rivals

Undaunted by the crowd of players or prospect of a price war, budget airline expects to break even within a year

By Karamjit Kaur

TIGER Airways took delivery of its first plane yesterday - and warned its budget competitors that it is aiming to break even within a year and 'dominate the region'.

The carrier, backed by Singapore Airlines (SIA), plans to offer five to 10 destinations by year-end and have a 12-plane fleet by 2006.

Its first 180-seater Airbus 320 landed at Changi Airport's Terminal 1 yesterday from Toulouse, France.

Chief executive Patrick Gan then met reporters in a confident mood, estimating that average fares would be about 40 per cent lower than the cheapest ticket on a full-service airline.

After Valuair, Singapore's first budget airline, took off in May, big players like SIA and Cathay Pacific triggered sporadic price wars.

Mr Gan said travellers can expect 'a reaction from the other carriers' when Tiger starts flying in the last quarter of the year.

Though he would not say how low its fares might go, he said the airline 'will be prepared to meet the challenges'.

SIA launched a $150-per-head promotion last month, for two passengers flying together to Jakarta or Bangkok. A Valuair ticket costs $199. To Hong Kong, SIA's lowest fare is $300, Valuair's is $350.

Tiger's other shareholders are Singapore investment agency Temasek Holdings, the founders of Irish low-cost airline Ryanair, and United States-based marketing and business strategy consultants Indigo Partners.

Like the predator it is named after, Mr Gan said Tiger will be 'aggressive and focused when hunting, or when challenged'.

Undaunted by Tiger's arrival, Valuair executive director Jimmy Lau stressed that his airline did not see itself in competition with Tiger as 'our model is different'.

Valuair, set up by SIA veteran Lim Chin Beng, is 'targeting a different segment of the market by offering more legroom, meals on board, assigned seating and extra baggage allowance'.

Other budget carriers in the region include Malaysia's AirAsia, Thailand's Nok Air, Indonesia's Lion Air and Australia's Jetstar.

Another airline to be based here is a yet-to-be-named one backed by Australia's Qantas.

On Tiger's confident front, DBS Vickers' aviation analyst Chris Sanda said: 'Tiger Airways is lagging behind airlines like AirAsia which have been around for a few years... it needs to gamble big to win big and expand quickly to make up for lost time.'

Cost discipline will be key.

Tiger will rely mainly on the Net to sell seats and passengers must pay for food and drinks. It expects passenger load to grow by 25 to 35 per cent annually over five years.

Said Mr Gan: 'There is a big hunger for low-fare travel... We intend to break even in the first year.'

Here's Tiger Airways on the Chinese press in Singapore(Lianhe Zaobao):

http://img73.photobucket.com/albums/v222/ylstan03/Miscelleneous/DSCN18751.jpg

This story was printed from TODAYonline

Upbeat Tiger leaps into low-fare fray

Carrier eyes profits in a year; analysts see it swallowing rival airlines

Thursday • July 22, 2004

Tay Tsen Waye
waye@newstoday.com.sg

THE battle for the growing market of budget air travellers is heating up and newcomer Tiger Airways thinks it has what it takes to become the dominant player in Asia.

At a ceremony to take delivery of its first aircraft yesterday, the Singapore Airlines (SIA) affiliate — which is set to be the fourth low-cost carrier to fly out of Singapore — reiterated its forecast of becoming profitable in its first year of operations.

"Tiger is here to stay. We have all the expertise and resources from shareholders … and we've got a long-term business plan to grow and dominate the region," said chief executive officer Patrick Gan.

This optimistic outlook comes amid grim warnings that the crowded budget market is set for a major shakeout in the next two years, one that could see some 15 low-cost carriers in the region whittled down to one or two major players.

With Tiger Airways and a Qantas start-up, likely to be called Jetstar Asia, to take to the skies by the year-end in Singapore, it will bring to five the total number of airlines flying out of Changi.

Thai AirAsia, a joint-venture between Malaysia's AirAsia and Thailand's Shin Corp, Indonesia's Lion Air and local carrier Valuair already operate flights out of the Republic.

Consolidation is already evident in mature markets like Europe, where three budget airlines — out of a field of 60 — have gone belly up this year.

One aviation analyst told Today that five viable carriers flying out of Singapore is "probably an overkill".

"I suspect that numbers will have winnowed down to two within 12 months," said the analyst who declined to be named. He added that the shakeout could see Tiger Airway buying over rival budget carrier Valuair.

In the cut-throat budget market, key factors to survival would include low prices and deep pockets, analysts and industry players said.

"What the consumer wants is to get from point A to B at the lowest possible fare," said Tiger Airways chairman William Franke.

"What will happen for sure is that the stronger, well-capitalised players will be ones who will be better positioned to face competition," noted Mr Sean Lee from the Singapore Aircraft Leasing Enterprise, which has leased planes to Valuair.

Some are hedging their bets on AirAsia winning the economic air travel race.

"In every market, there can only be one low-cost leader," said one analyst. "AirAsia were the first to market and they are based in low-cost markets. So, Tiger Airways is already two laps behind."

But Tiger is confident that its business model and the pedigree of its shareholders — which include SIA, Temasek Holdings and the founder of Ireland's Ryanair — will see it through the highly competitive environment.

"If you look at who our parents are, that gives a lot of confidence to fly Tiger," said Mr Gan.

Buoyed by a strong regional demand for economic air travel, Tiger Airways also anticipates a 25 to 35-per-cent growth in passenger traffic in each of the next five years.

Mr Gan confirmed that Tiger Airways will fly by the last quarter of the year, if "not earlier", and expects to expand its fleet of 180-seater Airbus A320s to 12 by 2006 — at the rate of four each year.

The airline aims to eventually increase from one to four the number of daily flights to between five and 10 destinations, within a four-hour radius from Singapore.

Tiger Airways will offer "one of the lowest if not the lowest fares in the market" — an average 40-per-cent less than what full service carriers charge, Mr Gan said. But consumers will only see this after it shifts operations from Changi's Terminal 1 to the new low-cost terminal in early 2006, he added.

As for Valuair, the carrier's executive director Jimmy Lau warned against looking to Europe and America as a mirror of what will happen in Asia.

"In the west, the low-cost carriers fly mostly domestic sectors.

"Their Asian counterparts are more likely to fly international routes," he said.

Whatever happens, the growth in the number of budget carriers makes for an exciting time for consumers, said chairman of the Singapore chapter of the Pacific Asia Travel Association Wong Soon Hwa.

They will be spoilt for choice with cheap fares and may even be able to afford to travel up to four times a year on short trips, he told Today.

Analysts Today spoke to agreed that consumers have the most to gain from the mushrooming of low-cost airlines.

Said one aviation analyst: "There's no such thing as overcrowding. The winners are the consumers. So, the market has to decide who wins and who loses.

"The argument that budget airlines won't work because Asians like luxury is wrong. People don't like spending money foolishly."

Copyright MediaCorp Press Ltd. All rights reserved.

Business Times - 22 Jul 2004

Tiger Airways' plan to undercut by 40% may spark fresh price war
SIA's low-cost carrier expects to take off by Q4

By DANIEL BUENAS

(SINGAPORE) Cut-price carrier Tiger Airways - the low-cost airline that SIA set up with local and foreign partners - could trigger a new air-fare price war by offering tickets 40 per cent cheaper than the big players.

Speaking to reporters yesterday at a ceremony to receive Tiger's first aircraft - a new 180-seat Airbus 320 - CEO Patrick Gan said the carrier will offer 'among the lowest, if not the lowest' fares in the market.

'I'm sure, because of competitiveness in the market, that there will be reactions from the other airlines,' he said. 'Whether this leads to a price war remains to be seen. We intend (our fares) to be 40 per cent below those of network carriers.'

Mr Gan said the company will target destinations within four hours' flying time of Singapore and expects to begin operations in the fourth quarter of this year or sooner.

Some industry watchers have said there are already signs of a price war. 'I think the price war has already begun, as we have already seen some pre-emptive moves by carriers,' said aviation analyst Peter Harbison, who heads the independent Centre for Asia Pacific Aviation. 'Whether a new round of price war develops depends very much on the routes (Tiger Airways) decides to operate.'

James Ginns, country manager for Cathay Pacific, echoed this view but said that whether Tiger becomes a direct competitor remains to be seen. 'Cathay Pacific is determined to continue... as a full service carrier on all the routes we serve (from) Singapore,' Mr Ginns said.

Jimmy Lau, executive director of budget airline Valuair, said Valuair doesn't see itself as being in direct competition with Tiger because the two are looking at different market segments. 'A price war is inevitable, but Tiger Airways is competing not just with Valuair,' he said.

In the same week that Valuair began flying the popular Singapore-Hong Kong route, Cathay Pacific, Singapore Airlines and United Airlines dropped their prices for a return Singapore-Hong Kong flight by more than half in some cases.

To offer aggressive prices, Tiger plans to exercise strict cost control. It will also use the Internet extensively, and expects to sell 80 per cent of tickets online. The rest will be sold through travel agents and call centres.

Tiger is the first operator to commit to the new Low Cost Carrier Terminal at Changi, which will cut passenger service charges and office rents by an estimated 20 per cent. The terminal, ready by early 2006, will initially be able to handle 2.7 million passengers a year.

Besides the aircraft it received yesterday, Tiger will take delivery of three more A320s this year and has indicated that it plans to have 10-12 aircraft in operation by 2006 to cater to an expected 25-30 per cent growth in annual passenger volume over the next five years.

Copyright © 2004 Singapore Press Holdings Ltd. All rights reserved.

I honestly think Budget airlines have the coolest livery.

I honestly think Budget airlines have the coolest livery.
But all them seem to have the same white background with a huge name of the airline plus .com behind it? ;)

Taiwan already have UNI air, thats low cost airlines too. I once tried it from Bali to Taipei, using MD-90. But why bother to use no frills airlines if China airlines is also cheap and their service is quite good? :D

cheers

Actually UNI air, own by EVA air, is assumed as domestic carrier more than no-frills airlines based in Taiwan eventually although some sort of short-distance regional services being operated since concessionaire grant few year ago :)

Most domestic carrier ex. Far East Air, Formosa Air are being flied for some charter operation regionally even with AE, fully subsidiary by CI is runing some kind of interests among there

By the way, Taiwan open air policy is still not in diaphaneity enough even though an absolutist dominated over and lead to the market

That why CI is remained :sleepy:

Hmm.....there is begining to have this problem if diffrentiating clearly between what is a "budget" and a "regular" airline. For eg, I notice how the sg press called Lion Air a budget airline, when they insisted they arent?

JULY 23, 2004

Airlines scramble for pilots and planes

Shortage of both as more budget carriers enter the market; some companies have even resorted to poaching staff

By Karamjit Kaur

BUDGET airlines around the region, rushing to take to the skies this year, could run into some turbulence in their search for aircraft and pilots. Both are in short supply. More than 10 low-cost carriers have already taken off or will do so in Asia this year and the aircraft of choice for many has been the Airbus 320.

They are hard to come by, said the region's leading aircraft leasing company, Singapore Aircraft Leasing Enterprise (Sale). As a result, as one airline executive put it, 'budget carriers are going all around the world hunting for planes and when we find them, we worry that our competitors will be on to the same source too'.

The news is not any better when it comes to pilots. The general rule is eight pilots per aircraft and where the airline's advertisements have failed to show results, carriers have resorted to poaching. Experienced crew from main line and rival budget carriers said they had even been wined and dined in discreet head-hunting sessions.

It is a sign of the times, said the managing director of the Sydney-based Centre for Asia Pacific Aviation, Mr Peter Harbison. 'It is always an issue when we get bursts of very rapid growth, for supply to match demand and this applies to not just aircraft and pilots but also other resources like ground handling services.'

For planes, the problem could last a while, said a spokesman for Sale. 'In our core Airbus 320 market, we have reached the point where, industry-wide, there are no more new aircraft available this year and fewer than 15 due to come off lease from all lessors combined.' He added: 'We will have only two new aircraft available for lease next year.'

The A320 family (A318, A319, A320 and A321) is the most popular Airbus model in the Asia Pacific, with 21 delivered in the first six months of this year, most of it going to airlines in China. Both Valuair and Singapore Airlines-backed Tiger Airways, which starts flying next quarter, have opted for the single-aisle A320, which seats up to 180 passengers.

Valuair hopes to add two aircraft every year to its fleet while Tiger's plan is to have up to 12 planes by 2006. Sources say Qantas' new start-up here, which also starts operating by year-end, has also picked the A320. Other airlines that fly the same aircraft include SilkAir and India's Air Deccan.

Leasing a new single-aisle Airbus costs about $489,000 a month. But with new planes in short supply, carriers might have to settle for older aircraft coming off lease, said Sale's spokesman. 'The supply and demand equation today has changed very significantly compared to a year ago.'

Tiger, however, contends that it has no problems getting its share, possibly because of its pedigree. Chief executive Patrick Gan said: 'Who would you want to lease your aircraft to? The credentials of the lessee and who its shareholders are, are very important and they do not come any better than this (Tiger). I am getting calls from leasing companies.'

But as for finding pilots, he said there are fewer of them around relative to the number of new airlines coming up. He made it clear, however, that Tiger did not poach.

According to its website, captains in Tiger are paid a flat salary of between $14,000 and $16,000. Mr Gan would not say how many pilots the airline had hired so far but confirmed that 'a few' had been seconded from SIA temporarily. Mr Jimmy Lau, executive director of Valuair, which has 16 pilots, said: 'We have enough who come to us willingly. We do not need to go around pinching from other airlines.'

One target for airlines looking to hire A320 pilots would be SilkAir. It has 95 pilots and will hire more as it plans to increase its fleet from 10 planes now to 16 by 2008. Even with the recently sealed deal that gives SilkAir pilots a higher salary and more rest days, some of them have left for budget carriers.

One who made the switch after eight years in SilkAir said: 'It is truly a different world, a more relaxed one.'

DEMAND OUTSTRIPPING SUPPLY...

'It is always an issue when we get bursts of very rapid growth, for supply to match demand and this applies to not just aircraft and pilots but also other resources like ground handling services.'
- Mr Peter Harbison, managing director of the Sydney-based Centre forAsia Pacific Aviation

...BUT SUPPLIERS STILL COME CALLING

'Who would you want to lease your aircraft to? The credentials of the lessee and who its shareholders are, are very important and they do not come any better than this (Tiger). I am getting calls from leasing companies.'
- Mr Patrick Gan, chief executive of Tiger Airways

Business Times - 29 Jul 2004

Valuair to expand fleet, targets routes to China

SINGAPORE - Budget carrier Valuair plans to lease two more planes in 2004, doubling the size of its young fleet, with the intention of expanding the airline's reach to include routes to China, its chief executive said on Thursday.

'We are very happy with (business), that's why we have taken on two more planes,' Jimmy Lau said.

The new, leased Airbus A320s - which can carry up to 150 passengers - will be with the company by the end of the year, and could be used to add routes between the city-state and China, Lau said.

'It would be extending the routes towards anywhere along coastal China ... That would be our first target,' he said.

Valuair started operations in May, serving Bangkok, Thailand, the Indonesian capital of Jakarta, and Hong Kong, on China's southern coast.

The company is one of several low-cost airlines that have sprung up in the region in recent years, trying to emulate the success of budget carriers in the United States and Europe.

Copyright © 2004 Singapore Press Holdings Ltd. All rights reserved.

Actually, No frills airlines = low cost with no meal (you have to pay for the meal inflight), lowcost airline = very cheap ticket (still with meal?)

and what regular airline stands for? normal ticket price with meal?

cheers

Haha.....I wont actually say there is a "low cost" category, because "Low Cost," "Budget," "No frills," etc usually refer to the same airline sector? Afterall, these budget airlines tend to be called Low Cost Carriers, a more formal name for them?

"Normal" airlines which charge very low fares are just that......cheap regular airlines! :D

btw guys, i am in changi airport now hehe, waiting for my flight to jakarta with a340-500, i will give you guys flight report and pictures from melb-sin-jkt later

ciao

cheers

Haha! Enjoy your time at the airport dude! ;)

Thanks dude, Very dissapointed with SQ decision to change A340 with MEGATOP! because the flight was very full.....arghh i was really sad when i saw the big jumbo was my plane :bash:

but overall, services and etc, SQ is very improving now..the SQ girl from melbourne is actually my friend lol..so it was fun...

i saw one tiger airways sitting there alone..picking up some passengers? (do they start flying now?)

funny thing is when i saw 2 sg cops, my head was suddenly remember you huaiwei :rofl:

cheers

Thanks dude, Very dissapointed with SQ decision to change A340 with MEGATOP! because the flight was very full.....arghh i was really sad when i saw the big jumbo was my plane :bash:

but overall, services and etc, SQ is very improving now..the SQ girl from melbourne is actually my friend lol..so it was fun...

i saw one tiger airways sitting there alone..picking up some passengers? (do they start flying now?)

funny thing is when i saw 2 sg cops, my head was suddenly remember you huaiwei :rofl:

cheers
They changed the plane at the last minute or what? I can feel your pain. :cry:

Good to see some improvement in SIA service during such a low period...in what ways did you see an improvement btw? As for tiger airways...no I doubt it is doing anything there! :D

Oh..and the cops. ;) I doubt they are regular cops thou? :D

They changed the plane at the last minute or what? I can feel your pain.

I dont know but when i asked the ground staff, thats the reason they gave me :bash:

Good to see some improvement in SIA service during such a low period...in what ways did you see an improvement btw? As for tiger airways...no I doubt it is doing anything there!

SIA services are much much better now in everything, the girls always smiling to me and my mom and they even offered my mom double blanket and even more meal! :D but the big smiling thing is really a plus for me :okay:

I dont know, but i saw tiger's plane with stairs and so many people there..maybe they did test flight...its very expensive to lease and keep the jet until december! i wonder how much money they have :D

Oh..and the cops. I doubt they are regular cops thou?

Oh. i dont think so..they use blue uniform like in your pic :D

cheers

Time is GMT + 8 hours
Posted: 06 August 2004 1637 hrs

Abacus signs deal to sell tickets for budget carrier Valuair
By Chan Hwa Loon, Channel NewsAsia

SINGAPORE : Asia's biggest airline ticket agent Abacus International will start selling tickets for Valuair.

This will be Abacus' first deal with a budget carrier.

Abacus says its 10,000 travel agents in the region will start booking flights for Valuair this month.

And Abacus says it expects other low-cost airlines to follow suit.

It will charge Valuair and other budget carriers a lower price than full-service airlines, such as Singapore Airlines, because budget carriers do not need services like seat allocation.

Valuair says many of its passengers buy their tickets through travel agents and the airline does not want to alienate them by not providing them that avenue.

It also says the tie-up with Abacus will enable it to have further code-sharing arrangements with other airlines. - CNA

Copyright © 2004 MCN International Pte Ltd

August 06, 2004
Valuair picks SIA veteran as CEO after year-long search

By Chua Kong Ho

WHEN he quit his post as Singapore Airlines’ senior vice-president for cabin crew in May, Mr Sim Kay Wee (pictured) said goodbye to a 34-year career with the national carrier.

http://www.asiaone.com.sg/streats/pics/20040806_story1.jpg

He had joined the airline fresh out of school in 1970 as a management trainee.

Now, three months after his surprise resignation, the 55-year-old has traded familiar Airline House for the HDB Hub in Toa Payoh, where Valuair has its offices.

Valuair, the Singapore discount carrier started by former SIA boss Lim Chin Beng, named Mr Sim as chief executive yesterday after a year’s search.

Said Mr Sim: “I have the opportunity now to help this airline grow and nurture a culture I strongly believe in – that of a business with a heart for its employees and (to) treat them as members of a family.”

Before joining Valuair, the University of Singapore graduate held senior management positions at Singapore Airlines, from public affairs to market planning, human resources to airport services, and marketing to managing SIA’s 6,800 strong cabin crew division.

He also spent 17 years overseas working in cities such as London, Bangkok and Manila and countries such as Japan and Brunei.

Speaking of his appointment, Mr Sim said: “No doubt one of the first questions I can expect people to ask me is why I left SIA and joined Valuair. Well, when I left SIA, I was thinking of leading a more sedentary lifestyle.

“Over the last 34 years, I have been involved in the airline business contributing to the early startup of SIA and saw it grow into an established brand name in the marketplace. Then, this call from my old boss, Mr Lim Chin Beng, came.”

Mr Lim, who was managing director of Singapore Airlines from 1972 to 1981 and its deputy chairman until 1991, persuaded the avid golfer and swimmer to come on board and run the airline.

Said Mr Lim: “We chose Kay Wee for the job largely because of his extensive airline experience and his belief in fostering a company with a heart.”

Mr Sim will be leading Valuair into battle with low-cost competitors Tiger Airways, AirAsia and the unnamed Qantas carrier.

Valuair, which pitches itself as a quality budget carrier and is sandwiched between Tiger’s stripped-down model and SIA’s full-service offers, currently flies to Jakarta, Bangkok and Hong Kong.

As for his plans for the airline, Mr Sim said Valuair is moving into the next phase of development, “with exciting things lined up on our radar screen, like the lease of two new aircraft by year-end, new routes to open and most importantly, keen competition to tackle from new low-cost airlines in Singapore”.

Copyright © 2003 Singapore Press Holdings Ltd. All rights reserved.

So when valuair merges with Tigerair, I suppose those members will become SIA employees again? :D

So when valuair merges with Tigerair, I suppose those members will become SIA employees again? :D

Is Valuair "smiling ahead" for that to happen?? :D

Time is GMT + 8 hours
Posted: 12 August 2004 1211 hrs

Budget carrier Valuair to partner Abacus

SINGAPORE : Singapore's Valuair will be a partner of Abacus by the end of the month, making it the first budget carrier to join the region's biggest ticketing and reservations service provider, Abacus said Thursday.

The two firms have exchanged a letter of intent and Valuair bookings will be integrated into Abacus' network of 10,000 travel agents by the end of August, the statement said.

"We are delighted to have Valuair on board, and look forward to helping them dramatically increase their distribution footprint in Asia while maintaining their position as a value carrier," Abacus chief executive Don Birch said in the statement.

At present, tickets for Valuair flights are sold online, through phone bookings or at its main office.

Valuair, started by a former Singapore Airlines managing director, made its maiden flight in May and is the first budget airline to base itself out of Singapore. - AFP

Copyright © 2004 MCN International Pte Ltd

Business Times - 12 Aug 2004

Qantas says its Asian offshoot will lease Airbus A320s

SYDNEY, Australia - Australian flag carrier Qantas said on Thursday that its Singapore-based Asian budget offshoot has signed a deal to lease eight Airbus planes when it starts flying later this year.

The carrier, which has yet to be named, will start operations flying four Airbus A320s, the new airline's chief operating officer Con Korfiatis said in a statement.

The first plane is scheduled for delivery by the end of October, Mr Korfiatis added.

After the first four planes are delivered, four more A320s will be phased in later.

No financial details of the deal were released.

The airline, which will be majority owned by Qantas but based in Singapore, has applied for its Singapore Air Operator's Certificate and will apply for traffic rights to a ring of Asian cities within five hours travel time from Singapore.

Qantas will hold a 49.9 per cent stake in the airline, while Singapore government investment arm Temasek Holdings will hold 19 per cent. Singapore businessmen Tony Chew and FF Wong will own 21.1 per cent and 10 per cent, respectively.

Qantas chief executive Geoff Dixon has suggested in the past that the Asian offshoot will most likely be called Jetstar Asia.

Qantas recently established a domestic budget carrier called Jetstar, which took to the Australian air on May 25, challenging local budget carrier Virgin Blue, which controls about 30 per cent of the domestic market.

Copyright © 2004 Singapore Press Holdings Ltd. All rights reserved.

about that abacus valuair deal news, that explains, why when i tried to book valuair from melbourne it doesnt show up in the travel agent's computer...:D

cheers

AUG 14, 2004
$25 return ticket to Tokyo - thanks to fierce airfare war
By Serene Goh

AIRFARES have hit a new low, and not just among budget carriers. When SA Tours Mega Travel Sale opens at 10am tomorrow, a total of 25 pairs of return tickets to Tokyo are up for grabs by the first 25 buyers there - at $25 per person for travel between Sept 1 and Nov 17.

The ANA Airlines promotion beats such recent lows as Dutch carrier KLM's $99 ticket to Jakarta.

Previous lows on full-service carriers plying similar distances as that of ANA to Tokyo had bottomed at $888 to $988 per person.

Now, however, competition between full-service and budget carriers is resulting in price wars.

'Full-service airlines have lowered their airfares to compete with low-cost airlines,' SA Tours' assistant general manager of business development, Ms Alicia Seah.

As examples, she cited 'never before' lows on popular routes to Bangkok and Hong Kong on full-service airlines at about $230 and $333.

The SA Tours sale will be held at Suntec Singapore Exhibition Hall 402, and ranks among seasonal travel blow- outs that promise bargains.

Other fairs include those of Chan Brothers Travel (Aug 22 at Suntec Exhibition Hall 402; preview at Suntec City Tropics Atrium tomorrow) and the National Association of Travel Agents Singapore (Natas).

The three-day Natas fair, from Sept 24, also includes big-name agents CTC Holidays and Ananda Travel.

These events usually occur twice a year; in March/April and August/September, to capture June and year-end school holiday makers.

Rapidly dipping prices, agents note, have made Singapore's travellers more impulsive.

'Long weekends have become gold mines on the calendar and the reasons for travel have become increasingly tied to the pursuit of individual whims and fancies,' said Ms Seah, adding that buyers are aged anywhere from 25 to 65 years old.

Indeed, the 25-year-old SA Tours expects a turnout of about 30,000 people this weekend, who could spend as much as $9 million - a 15 per cent jump in sales over this time last year.

Natas' chief executive officer, Mr Robert Khoo, said that if the uptrend persists, the travel industry could return to its 2002 state of health.

But he stopped short of calling the trend a boom, saying: 'It would be a while before we can reach 2000 levels, that is, pre-Sept 11.'

Copyright @ 2004 Singapore Press Holdings. All rights reserved.

As examples, she cited 'never before' lows on popular routes to Bangkok and Hong Kong on full-service airlines at about $230 and $333.
$333 is still way over budget....I am waiting for sub-$200 fares! :D

$333 is still way over budget....I am waiting for sub-$200 fares! :D

I think that might have to wait until the 3 budget airlines in action......:yes:

Can't hardly wait! :D

The problem is...if they all keep flying to the same old destinations, then that stil dosent give us lots of travelling options right? I do want to see a day when we could easily shuttle to countless Southeast Asian cities on the cheap!

Yeah, I dont want to see another SIN-JKT again, its just too many! i want to see more flights from other places like Bali, lombok, manado or any other asean countries like vietnam, philippines, etc.

cheers

Well I dont mind if the price drops below S$100 thou. :D

How frequently do Valuair fly to Jakarta now? Just say an ad saying they are introducing two flights per day?

I think they are still flying once a day, maybe during peak seasion like in november and december then they will increase their flight. They really need to figure it out how they can survive after tiger airways and jetstar asia begin their operation though. :D

cheers

PLEASE, PLEASE, P L E A S E fly down to Perth!!! Wasn't Perth the most requested destination in a poll conducted by Valuair along with Bangkok?

PLEASE, PLEASE, P L E A S E fly down to Perth!!! Wasn't Perth the most requested destination in a poll conducted by Valuair along with Bangkok?
Wow...you are the second person to demand for this sector after heirloom's heartful plea!

Yeah I think they ought yo start this sector soon too. Imagine the boon to traffic when budget conscious passengers actually fly down to Perth, and then transfer to a Virgin Blue flight to other Aussie destinations if need be...all on the cheap?

oh well i dont really care now as i've only got one and a half flight segments left and all have been booked. now... it should go to japanese destinations!

Business Times - 23 Aug 2004

Tiger Airways to start flying to Thailand

SINGAPORE - Tiger Airways, Singapore' first true low cost carrier has annouunced that it will kick-start operations by heading off in phases to popular destinations in Thailand - Bangkok, Phuket and Hatyai.

It plans to fly up to 10 destinations in the first year, and up to 15 destinations in the second year.

It will start with three daily flights to Bangkok and subsequently, to Phuket and Hatyai once daily.

Ticket sales will start by early September and the internet will be Tiger Airways' key marketing, sales and revenue tool, supporting the carrier's plans to sell 80 per cent of its tickets through its website.

Exclusive fares and promotions will be launched with the start of sales.

The carrier has just received the Air Operator's Certificate from the Civil Aviation Authority of Singapore (CAAS) and will be ready for take-off in September, ahead of schedule.

In an earlier announcement, it revealed that the first flight is expected to take place in the last quarter of 2004.

The carrier received the certificate after going through a series of stringent tests in accordance with industry regulations, including the final Proving flight from Singapore to Bangkok, Thailand.

Copyright © 2004 Singapore Press Holdings Ltd. All rights reserved.

AUG 23, 2004
Tiger Airways ready for price wars

SINGAPORE -- Singapore Airlines' low-cost arm raised the stakes on Monday in the battle for budget travellers, saying it is ready for a price war as it prepares to begin service next month.

Tiger Airways will start operating three times daily to Bangkok, the Thai capital, in September, Tiger's chief executive Patrick Gan said without naming the date.

Originally, Tiger had been set to make its maiden flight in the final three months of this year.

Services to Hatyai, in Thailand's south, and the resort island of Phuket, also in the south, would soon follow, said Mr Gan. By year-end, two more unnamed countries will be added to its fledgling route network.

'As far as Tiger in concerned, we are ready for any price war if it ever breaks out,' said Mr Gan at a briefing for journalists. 'We have our own business plan contingencies built in place, and we are confident we will be successful at the end of the day.'

Tiger already faces formidable competition as the low-cost, no-frills airline sector has boomed in Asia over the past two years, emulating the rapid growth of its counterparts in the US, Europe and Australia.

Malaysia's AirAsia has led the way, offering fast-growing services within the country and internationally. It has a Thai unit, Thai AirAsia, that flies from Bangkok into Singapore's Changi Airport.

In addition, Thailand's Nok Air, Indonesia's Lion Air, and Singapore's Valuair have taken to the skies following the low-cost model. An offshoot of Australia's Qantas Airways also plans a Singapore-based unit.

Singapore's aviation authorities said last month they'll build a S$45 million budget terminal specifically for low-cost airlines - which Tiger has already committed to using when completed in 2006. -- AP

Copyright @ 2004 Singapore Press Holdings. All rights reserved.

Huaiwei, I saw ads on newspaper said that starting this 25th of august, Valuair will fly twice from singapore - jakarta, thats absolutely good news :okay:


cheers