Singapore Airlines is planning to add more capacity and increase its services across India despite the entry of low-cost Southeast Asian airlines AirAsia in the Indian market. “We are close to a hundred flights and hope to achieve the landmark this year,” Singapore Airline's general manager (India) G M Toh stated in an earlier interaction. Singapore Airlines hopes to introduce services to cities such as Pune, and add services to Delhi. Singapore Airlines will face intense competition from AirAsia, which will launch its India operations later this year and Tiger Airlines, in which it holds a stake. Another challenge will be posed by Air India, which plans to start direct flights between Delhi and Melbourne this year. Toh, however, is unfazed. “Singapore is a hub for low-cost airlines in Southeast Asia and these airlines account for about 25 per cent of the air traffic at Changi airport.
We are used to competition in our backyard. Low fares is not the only factor determining passengers' travel choice and there are factors like schedule, service and reliability. Low fares are good for grabbing attention but all businesses have to be sustainable and in the long run, must cover the costs of running their operations,” he stated. India and Singapore on Tuesday revised an air services agreement to allow more flights between the two countries.