Singapore-KL high-speed link may cut flight prices by half

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SINGAPORE/MALAYSIA - Fares for flights between Singapore and Kuala Lumpur could fall by close to 50 per cent once a new high-speed rail link is up, said an expert, who predicted that travellers will favour wheels to wings, in line with the situation in other countries.

Singapore and Malaysia announced last month that they have agreed to build a high-speed railway link by 2020 that will cut travel time between Malaysia's capital and Singapore to just 90 minutes.
While flight time between the two cities is only about an hour, the travel time for most passengers goes up to three or four hours after taking into account travel to and from airports, and check-in and immigration procedures. Travel by coach takes about five hours.

"What we have seen in other countries after the introduction of a high-speed rail is that airfares dropped by almost 50 per cent due to intense competition," said Ms Cindy Chua, head of client management of corporate-services provider Hogg Robinson Group (HRG) Singapore.
Now, airfares for close to 30 direct flights between Singapore and KL each day can go below $100, or up to over $300 for full-service airlines.


Earlier reports said tickets for the new high-speed train could be priced at $80 to $100, and HRG said rail could be an attractive option even if airfares dip.

"Business travellers were three times more likely to book rail over air, for rail routes which are under three hours, even if the train journey is longer than the corresponding flight," said Mr Greg James, general manager of HRG Singapore.

Based on the corporate-services provider's analysis of millions of trips in Britain from 2010 to last year, once the three-hour threshold is reached, travellers tend to pick air travel instead.
One traveller who is looking forward to the new rail link is Mr Tan Ghim Wee, 34, who goes to Kuala Lumpur for work five or six times a year. His journey takes four hours door to door, 45 minutes of which are taken up getting from Kuala Lumpur International Airport to the city centre.
The business-development manager would welcome a "hop on, hop off" rail option, and hopes that he can "quickly settle down to do some reading or plan for meetings" during a train ride.

The upcoming rail link is a harder sell for IT consultant Bernard Low, 29, who works in KL and returns to Singapore every weekend.

Flying via budget airline Firefly, he lands at Subang airport, which he said is 15 minutes from his office in KL, cutting down his travel time significantly.

But he would be willing to give the train service a try when it is up, if the train stations are accessible.
HRG's analysis bears this out. While travel time and price are vital, factors like train-station location also affect travellers' choice of train or plane.

Some corporate travellers may still prefer to take a flight due to the flexibility it gives their travel itineraries, said Mr James.
Still, the popularity of train travel could prove even greater if it offers stops at cities such as Johor Baru and Malacca.

News Source: AsiaOne