BUSINESS travellers and FITs are driving demand on United Airlines’ direct Singapore-San Francisco service, the only non-stop air link between Singapore and the US since Singapore Airlines suspended their direct services to New York and Los Angeles in 2013.
The inaugural flight departed from San Francisco International Airport on June 1 and touched down in Changi International Airport this morning. Its first flight from Singapore also took off earlier today and will land in San Francisco at 09.15 the same day.
Asked why the carrier is offering the service now, Laurence Chin, country manager Singapore and offline sales, United Airlines, said: “It is important for us from a business and strategic perspective, and we can do it because of the 787-900 Dreamliner aircraft that we have recently received with the capability of doing this in a profitable manner.”
He added: “We know this product is what customers want because they have told us as such and we are comfortable with the numbers so far from both the business and leisure side of things. In fact, passenger load has exceeded our projections.”
According to travel agents in Singapore, corporates are especially keen on the service given the four hours saved by taking the direct route. Previously, Singapore travellers needed to transit at Tokyo or Hong Kong.
Jane Chang, spokesperson for Chan Brothers Travel, said the time saving is a clear advantage, especially for corporate travellers.
There was also strong FIT response on economy seats during a recent three-day sale. “During the promotional period, the under S$1,000 (US$724) air fares were attractive in comparison to other indirect flights to San Francisco traditionally priced between S$1,300 and S$1,500,” said Chang.
However, she also observed that some leisure travellers may prefer a transit to break the long commute from Singapore to the US.
But even as United ceased services between Singapore and Tokyo as of June 2, Chin argues that it’s all about giving customers more options.
“Before, they have to fly via Narita or Hong Kong to San Francisco. Now, they have the option to fly direct and save four hours. For those who still want to go via Narita or Hong Kong, that is still available too through our joint venture with All Nippon Airways,” he said.
Strong interest for the flight have been garnered from firms in the technology, finance and pharmaceutical sectors, added Chin, stating that corporate clients have always been strong supporters of United’s offerings, and the Singapore-San Francisco service is no exception.
Dynasty Travel is also seeing an uptake especially on business class seats by corporates.
Alicia Seah, spokesperson for Dynasty Travel, said: “For corporate clients entitled to travel in business class for flights longer than seven hours, United’s BusinessFirst is selling the best (compared to Economy Plus and Economy).”
Seah also noted that United’s new service in economy class is about 20 per cent to 30 per cent cheaper compared to SIA, depending on travel dates and timings.
She further added that Singapore’s position as a regional air traffic hub means “demand can also derive from Indonesia, Malaysia, Myanmar and Vietnam”.
When asked if SIA’s plan to revive direct flights to the US in the near future is a threat, Chin said: “We welcome competition because we believe that by having good, robust and fair competition, everybody benefits. The consumer obviously benefits and we benefit by being forced to come up with better products to compete effectively.”
Additional reporting from Dannon Har
