Singapore: High-speed rail may clip wings of budget airlines

A high-speed rail link between Singapore and Malaysia could cause serious damage to budget airlines, experts believe. With train fares expected to be pegged to what LCCs charge, and maybe lower, the 90-minute train ride should appeal to many. Singapore-KL round-trip budget airfares typically range from about S$80 to less than $200. To make the rail option even more attractive, Singapore and Malaysia have agreed to co-locate their Customs and Immigration facilities at three places - Singapore, Iskandar Puteri and Kuala Lumpur. This means commuters will be cleared by the authorities on both sides at the point of departure. Citing similar examples elsewhere, one industry expert noted that when a high-speed rail system was introduced on the Taipei-Kaohsiung and London-Paris routes, budget carriers were badly affected. <br/>
Straits Times
http://www.straitstimes.com/singapore/high-speed-rail-may-clip-wings-of-budget-airlines
7/21/16