Asian carriers slash prices to fill planes

By CHRIS DANIELS

Asian airlines, battered by the Sars virus, are slashing fares and joining with hotels in an attempt to breathe new life into their businesses.

Singapore Airlines, one of the world's strongest carriers financially, has launched what it says is its largest ever global promotion, with deep discounts on travel to, and accommodation in, Singapore.

One of the conditions of the new cheap fares is that no frequent flyer miles will be offered.

Singapore Airlines' general manager for New Zealand, C.W. Foo, said it was the first time that his company had mounted a global campaign to such an extent to restore travel confidence in Singapore.

Singapore's death toll from Sars is 31 out of 206 cases. There have been no new cases in the city state in almost a month.

Hong Kong, home of Cathay Pacific, has been much harder hit, with 287 deaths from 1752 infections. The outbreak seems to be waning, with only a few cases - and sometimes even none - reported each day in recent weeks.

Cathay Pacific yesterday said that it was increasing the number of flights from Hong Kong to New Zealand to 10 a week from July 4.

The capacity boost had been planned earlier this year, but Sars led to the airline cutting flights to only five a week.

Cathay Pacific's country manager for New Zealand and the Pacific Islands, David Figgins, said Cathay had been experiencing "strong forward demand" for bookings between New Zealand and Hong Kong, and also onto the UK and Europe.

It had recently launched a range of cheap fares to Hong Kong and was now also offering deals for flights to Korea.

The Sars virus has turned Asian airlines, particularly Cathay Pacific, on their heads.

Speaking to the Business Herald last month, just weeks before the full force of the disease was felt, Figgins spoke out against heavy discounting of air travel, describing some of the fares offered by rivals as "just nuts", running the risk of undervaluing the product.

The relative dangers of a price war now appear to be viewed differently - with airline managers no doubt thinking that flying a full aircraft of passengers buying cheap tickets is preferable to flying a plane that is three-quarters empty.

Chinese carrier China Southern Airlines has also just launched a big push to stimulate its tourist market by teaming up with hotels to offer its passengers room discounts, upgrades and bonus frequent flyer miles.