SIA increasing free baggage allowance by 10kg on all classes

SINGAPORE — Faced with the challenge of preserving its market position in a highly-competitive environment, Singapore Airlines is increasing its free baggage allowance for passengers.

From tomorrow, passengers flying in all classes on SIA and SilkAir will be able to check in an additional 10kg of baggage without paying any extra.

Economy class passengers will be able to check in 30kg of baggage while the allowance for business and first class passengers is being increased to 40kg and 50kg, respectively.

“Baggage allowance obviously is an important area … so we thought the time is right for us to make the adjustments so that our overall value proposition remains strong,” Executive Vice-President (Commercial) Mak Swee Wah said yesterday at the carrier’s financial results briefing.

The higher allowances are similar to those already on offer from some of SIA’s major rivals such as Emirates and Qatar Airways, but they are better than Cathay Pacific’s baggage limits.

Analyst Brendan Sobie said increasing allowances is a way for SIA to attract and retain passengers.

“I think it’s an incremental step among many other initiatives that are designed to win more passengers amid the competition and help to improve yields. Even with lower fares, the competition remains intense. So, it needs to continue to do things to help it stand out,” said Mr Sobie, Chief Analyst at the Centre for Aviation.

The announcement came a day after SIA said it continues to face a challenging operating landscape even as it reported a 77.8 per cent on-year surge in quarterly net profit to S$160 million. Headwinds the airline is facing include the strong Singapore dollar, the uncertain global economy and high fuel prices.

While carrying more baggage may increase an aircraft’s fuel consumption, an SIA spokesperson said it would be “simplistic” to assume that ticket prices would go up as a result.

“Airfares are generally a function of market demand and supply, and they are adjusted depending on market conditions. Actual changes in fares also vary from route to route, and a range of fares is offered in different booking classes,” the spokesperson.

Besides the higher baggage allowance, SIA plans to redesign its website to be more “intuitive, friendly and easier for customers”, said Chief Executive Goh Choon Phong.

Mr Goh added that the firm will continue to focus on its operations in Asia, including increasing the number of routes flown by its subsidiary Scoot and expanding into India through a joint venture with Tata Sons.

“The reason why we’re expanding more in Asia is because Asia remains one of the higher growth areas, and we’re able to see that demand for travel continues to match the capacity that we put in,” he said.