SERVICE STANDARDS FOR BUDGET AIRLINES

SERVICE STANDARDS FOR BUDGET AIRLINES

37.

Mr Lim Biow Chuan asked the Minister for Transport whether there are any minimum service standards imposed on budget airlines for operating out of Singapore and, if so, whether there have been breaches of such standards in 2009 and 2010.

Mr Raymond Lim Siang Keat: The air transport market today is highly competitive and has become increasingly diverse. There is now a wide range of airlines and fares to suit different consumer travel needs. The Low Cost Carriers (LCCs), for example, provide a basic, no-frills service at more competitive rates than traditional Full Service Carriers (FSCs) that offer a comprehensive array of services.

We are aware that complaints on LCCs' service standards have increased in recent years. Unlike aviation safety standards which need to be strictly regulated by the Civil Aviation Authority of Singapore (CAAS) in the interest of public safety, there is no compelling case for regulating service offerings by airlines operating at Changi Airport. While regulating airline service standards may provide some assurance of assistance to passengers affected by flight cancellations or other service shortcomings, we have to be mindful that regulatory intervention will ultimately drive up air travel costs and stifle innovation in the air travel market, which is already a very competitive one. Such an outcome would not be in the interest of the travelling public and Singapore as an air hub.

Our approach has thus been to allow market forces to influence the level of service standards offered by the airlines. Given the keen market competition, the airlines are well aware that they will have to meet their passengers' expectations or risk losing these customers. The LCCs have recognised this and are starting to address customer feedback and take additional measures to improve customer service. One LCC has issued a customer guarantee commitment, while another has created a task force to look into improving communications with its passengers(1).

Nevertheless, to help the public make more informed travel choices, the CAAS is stepping up efforts to raise awareness on what service levels travellers can expect from airlines, including what to look out for when purchasing air tickets, and the avenues of recourse in the event of airline service lapses.

Passengers affected by airline service lapses have various avenues of recourse. They can take up the matter directly with the airline; and if transactions were carried out in Singapore seek assistance from the Consumer Association of Singapore (CASE), or lodge a claim with the Small Claims Tribunal. Where there are unfair practices, recourse is further available under the Consumer Protection (Fair Trading) Act.

CAAS will continue to monitor the situation closely and work with stakeholders, including airlines and the operator Changi Airport Group, to ensure that the travelling public is well served through a fair, open and competitive air travel market.

(1) The LCCs referred to are Jetstar Group and Tiger Airways respectively.