Budget airline in SEA and beyond
I’m currently watching a Singapore programme on TV on budget airlines.
What I’m compelled to ask is, how is it that one of the most succesful budget airline in this region, i.e. Air Asia does not get enough airtime? Afterall, it’s on Channel News Asia and it’s a channel that’s trying to grow in Asia. But of course, I’m asking a silly question, since it’s a Singaporean channel and the focus is apparently on Singapore budget airlines.
One Singapore budget airline, Tiger Airways, mentioned that it’s a big wall in front since it’s not allowed to fly to any city in Malaysia. It’s basically the case of demand is not met. Well, let’s put it this way- it’s all about politics.
Remember this, some time back, Air Asia was not allowed to fly to Singapore, even after Air Asia has tried ways including getting a bus company to ferry its passengers from Singapore to Johor Bahru airport to fly to KL. It was such a pain-in-the-ass process to obtain a KL-Singapore route, that its CEO decided to throw in the towel. Of course, Singapore kept its stand of being ‘fair’ by keeping its Changi airport tax the same for Air Asia as other big airline companies. However, Changi should realize that Air Asia is operating on a different business scheme compared to those big airline companies. But after some time, it become quite an open secret that Singapore is trying to protect its future investment in the budget airline industry, and thus Tiger Airways was born.
As the representative from Tiger Airways lamented on the missing good route between Singapore and major cities in Malaysia, my respond is, ask Singapore instead for your answer…
In any case, I’m proud to hear that Air Asia has plan to extend its coverage to China. That’s good news as that’s a great market to tap.
So when will Tiger Airways fly to Malaysia? Well, the day when Singapore agree to compromise on its term with Air Asia, is the day when Singapore believes that its budget airlines (currently, it stands at three operators) are qualified enough to be competitive with Air Asia, is the day Air Asia is allowed to fly to Singapore.