SilkAir Winning Asia’s Low-Cost Carrier Wars

by Josh Lew on

Despite the rise of regional airlines aimed at budget-minded travelers, SilkAir, one of Southeast Asia’s original low-cost carriers, remains at the top of the game. Even with competition coming from the likes of Bangkok Airways and AirAsia and with high fuel prices, SilkAir managed to post a profit for the last quarter.

Perhaps SilkAir’s lineage has something to do with its success. It is wholly owned by Singapore Airlines, which is consistently rated as one of the world’s best carriers. Aside from the in-flight services and amenities that come from being associated with a high quality brand, SilkAir often carriers Singapore Airlines customers on shorter, regional flights.

The main competition comes from AirAsia. It flies many of the same routes (Singapore to Phuket, for example). However, unlike SilkAir, it has no sugar daddy to feed it passengers and give it a reputation for quality. SilkAir also code-shares with Malaysia Airlines and Garuda and flies to cities in insular Southeast Asia as well as vacation hot-spots.But, the best reason to fly SilkAir: the in-flight meal of Hainanese chicken rice is nearly as good as you’d get in a Singapore hawker center.

British, American and Iberia Airlines to sign cooperation agreement

by Grant Martin on

The UK’s British Airways, American Airlines and Spain’s Iberia this morning announced that they would soon be cooperating on flights between North America and Europe while they would also start to collaborate and expand on other routes together in the Oneworld Alliance.

Are the airlines merging? No. But aren’t they already all part of the Oneworld alliance? Yes, they are. What the airlines have agreed to is tighter collaboration among their operations. Ground operations, codeshares and mileage programs will be better integrated to ensure seamless operation among carriers (read: keep passengers hooked in the alliance), while costs and overlapping spending will be reduced.

It’s important to note that the airlines will continue to operate independently, similar to the Continental and United collaboration announced earlier this year. What’s not clear is whether they will be collaborating on pricing. As Virgin Atlantic, the main competition, sulks about the conglomerate having over 50% of the landing slots at Heathrow, many have noted the potential for monopolistic pricing among the new bedfellows.

So will prices actually go through the roof? Technically, less competition in the market suggests that prices may have the potential to rise — but there are still plenty of carriers and entry points into the EU. American, British and Iberia may soon have a good handhold on Heathrow (Sorry, Virgin), but Amsterdam, Gatwick and Frankfurt are still wide open, so with a little bit of creative routing you don’t have to call of your summer vacation.

Several Oneworld airlines are filing for antitrust immunity to get the ball rolling on the cooperation agreement — should this get approved, expect to see small changes in operations over the course of the year.

Troops Charged to Check Baggage on the Way to Iraq

by Josh Lew on

Much has been made of airlines charging for checked baggage. Most people have grudgingly accepted this trend with a “what else can we do” shrug.

What else can we do indeed. It seems that even soldiers on their way to a war zone are not immune from these charges. Military personnel have been hit with fees as they have tried to check heavy rucksacks for flights overseas. Some airlines, like American Airlines, have made allowances for troops, letting them check twice as much baggage as average passengers.

Also, the military is supposed to issue passes exempting troops traveling to Iraq and Afghanistan from baggage charges. Apparently, though, these aren’t reaching everyone.

According to a CNN report, many soldiers have been charged as much as $100 to check their rucksacks and field kits. American Airlines, for one, has promised a refund for those who had to pay up front.

I wonder how long it will take for that $100 to get to the war zone and how much longer it will take the soldier to cash the check.

The VFW has been lobbying the Air Transport Association of America to wave the fees, but a spokesman responded by saying that the organization had no control over the baggage fees charged by individual airlines.

5 steps to smarter packing

WestJet Offers a Blast from the Past

by Josh Lew on

Passengers on Canada’s low cost carrier WestJet might be in for a bit of a surprise if they are traveling to Prince George in northern British Columbia. During September, the airline will not be relying on their fleet of Boeing 737s to make the trip. Instead, passengers will find themselves boarding one of two Bombardier Dash-8 turboprop planes that have been leased by the airline.

WestJet’s fleet is made up of 737s. So why the change?

In the days of airline budget cuts, you might be surprised to know that the turboprop flights are not the beginning of a new cost-cutting strategy.

Construction on the main runway at Prince George’s airport will necessitate the use of a shorter runway, which is not long enough to accommodate the Boeing 737. The airline chose to continue service with the prop planes rather than taking Prince George out of the picture for a month. The Dash-8 will be able to safely land on the shorter runway.

Flights to Prince George might take a little longer during the month of September, but passengers will be able to use prop plane experience as a conversation starter at happy hour.

Ryan Air to forbid booking through third parties

by Abha Malpani on

I heavily rely on multiple booking sites like Atrapalo, WeGoLo, Kayak, Rumbo, Orbitz, Expedia and CheapTickets. I find that 80% of the time, they are the best way to choose a route and flight to a destination. So reading that Ryan Air is not going to accept bookings from these sites, was an annoying blow.

Starting August 11, Ryan Air has announced plans to cancel all flight bookings through these intermediary sites (also called “screen scrapers”). Why? Apparently, these sites function against their terms and conditions, and are illegal. In addition, they want to ensure that passengers get the lowest rates, to avoid the Ryan Air’s website server be overloaded, and to be able to have direct contact with their customers. On the business front: When people book flights on intermediary sites, websites like Ryan Air lose sales on services such as travel-insurance, hotel-bookings, car-rentals, etc — probably the main reason for this action.

For the moment, BravoFly, V-tours, Opodo, Atrapalo, and OTbeach, are the main ones Ryan Air is taking action against.

I think passengers have the right to choose how they want to book their flights. There are more pros than cons booking with third parties, and if the customer is willing to pay the extra buck, the airline is no one to interfere with that. Anyhow, only 0.5% of Ryan Air’s bookings come through these booking engines; since Ryan Air will no longer appear on the flight options of these “screen scrapers”, they are bound to lose that business. Looks like they are just making an unnecessary inconvenience for everyone.