Dr Pepz, says in all here,
Airfares, especially international airfares, out of Australia, are among the highest in the world. This is why SIA and CX focus huge amounts of capacity flying into Australia rather than their own backyards.
The SIA Group with Scoot will fly 5 widebodies a day to Sydney, including 2 A380s, 1 773, 1 A330 and 1 772ER. That's more capacity than SIA has to most cities in South East Asia, except Jakarta.
SIA Group has more capacity to Sydney than Bangkok. More capacity to Brisbane than Penang. More capacity to Perth than Guangzhou, more capacity to Adelaide than Surabaya (which is the second largest city in "booming" Indonesia) and almost more capacity to Melbourne than Manila.
SIA would happily divert their widebody aircraft to Sydney and Melbourne, and let Jetstar/Tiger fight over serving Ho Chi Minh City 4 times a day at their $90 return fares. Or KUL at their usual $0 base return fares, and Manila with fares at $100 return or less sometimes.
The 777s and A330s better serve SIA to and from Australia, where they can extract some of the highest yields known in the industry.
Qantas happily withdraws from its home market and wants to enter routes such as SIN-KUL, SIN-MNL and SIN-SGN to earn $60 return from pax, whereas SQ uses their aircraft to SYD and extracts $12,000 return fares in First Class from Sydney onwards to Europe and limits their exposure in South East Asia to a few trunk routes, relegating most of the region to Silk Air.
Who's the winner here?
Well, this folks is what we are up against...the guys running the show @ Q group are more interested in flying between SIN -SGN for 60 bucks a pax, rather than flying Australians to Europe one stop (choice major cities other than LHR & FRA) seamless .... go figure...
