Asian budget airlines launch price war

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Asian budget airlines launch price war 
Bangkok Post: 4 Mar 2009
Singapore - Asian low-cost airlines are offering dirt-cheap tickets to perk up travel during the summer holidays amid the global economic downturn.

Singapore-based Tiger Airways, which flies to destinations in Southeast Asia, Australia and China, announced Tuesday it would launch summer fares starting at about 16 US dollars, including taxes.

The carrier, which is 49 percent owned by Singapore Airlines, said in a statement it would offer its "biggest ever network of seats" and was adding new destinations for its summer schedule from March 29 to October 24.

"Tiger Airways is bucking the global aviation trend," the airline said, referring to declining passenger numbers for full-service carriers worldwide.

Rosalynn Tay, managing director for Tiger Airways Singapore, said the airline would "demonstrate that we will continue to grow our business even in these difficult trading conditions."

Jetstar Asia, another Singapore-based budget airline, said it had extended until August 16 a promotion to beat the cheapest price offered by rivals.

Under the promotion, should a traveller find another published online fare cheaper than the lowest available on www.jetstar.com, the airline will beat the price by 10 percent if the customer makes an instant reservation by phone.

"The current economy makes it a tough operating environment where competition will be intense and fares will be under pressure," Jetstar Asia's commercial head Leslie Ng said in a statement.

"People are going for cheaper fares as they become more cost conscious and want to get value for money deals."

Malaysian budget airline AirAsia also has its "take me away" promotion.

Among its offers is a one-way flight from Singapore to Bangkok starting from 43 dollars, inclusive of taxes, for travel from March 23 to September 11, according to its website.

Comparatively, a return flight to Bangkok on Singapore Airlines costs 337 dollars, inclusive of taxes.

AirAsia is also offering a number of tickets starting from 26 cents for travel within Malaysia.

Indonesia's Lion Air is selling a one-way trip from Singapore to Bali for as low as 5.80 dollars for travel from June 1 to September 30, according to its website.

Thailand's Nok Air is offering one-way fares for as low as 25 cents, excluding taxes and fees, for domestic flights for those travelling from May 15 to September 30, its website showed.