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India and Singapore on Tuesday revised air services agreement to allow more flights between the two countries. The move will benefit Singapore Airlines which hopes to increase it services to over a hundred per week from current 96 flights.
At present there are 216 weekly flights between India and Singapore.
“As demand for air services between both countries continue to grow, the bilateral air services agreement was enhanced to include more capacity entitlements,” a statement from Singapore’s Transport Ministry said.
“As part of the enhancement of the agreement, both countries also agreed to meet regularly to review air services matters,” the Ministry said.
Civil Aviation Minister Ajit Singh and Singapore Transport Minister Liu Tuck Yew were present during the signing of the agreement. The ministry did not release other details related to revised seat entitlements.
"We are close to hundred flights and hope to achieve the landmark this year," Singapore Airline's general manager (India) G M Toh stated.
Singapore Airlines hopes to introduce services to cities such as Pune and add services to Delhi but is constrained by the air services agreement between India and Singapore.
"Singapore is a hub for low cost airlines in South East Asia and these airlines account for about 25%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 has to be sustainable and in the long run, must cover the costs of running their operations," he stated.
Singapore Airlines will face intense competition from AirAsia which will launch its India operations from 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.
The airline is the largest international airline flying into Australia with 118 weekly flights and this will increase to 128 flights by July. "The total traffic from India to Australia is 1.3-1.4 lakh. Traffic is fragmented at both ends and there are many carriers serving the market through their hubs. It will be challenging for direct operators," he said.
