Singapore Airlines needs fresh injection of excitement

At last, some positive vibes from Singapore Airlines (SIA) as it announced plans to develop the next generation of in-flight cabin products to be introduced in the latter half of next year – a move that it says in a statement issued by the airline will help it “remain at the forefront of airline product innovation.”

Cabin interiors, seats and the in-flight entertainment system will be revamped.

It was 6 years ago in December 2006 that SIA embarked on a major product overhaul, but as the competitive gap narrows and robs it of some of its glitter, it is all simply too long ago (“Singapore Airlines needs a strategic rethink“, 1st Aug, 12).

SIA senior vice president (SVP) of product and services Tan Pee Teck said: “Singapore Airlines is always looking towards the future and we have many major investments lined up for the years ahead to help retain leadership position. In this business if you are staying still you are moving backwards, as your competitors can catch up quickly.”

Indeed, the prolonged global economic uncertainty that has taken its toll on long-haul routes seems to have slowed down SIA somewhat. In recent months, there has been more news about budget offshoots Tiger Airways and Scoot and regional airlines SilkAir as the SIA group shifts focus to regional and short haul routes.

Tiger, recovering from the Australian suspension of its flights, is tying up with Indonesia’s Mandala Airlines and the Philippines’ SEAir. Scoot inaugurated services to Sydney, the Gold Coast and Bangkok, with Tianjin in China, Taipei and Tokyo in the pipeline. SilkAir announced a deal to purchase up to 68 Boeing jets, of which 54 are firm orders worth S$6.1 billion – an indication of its growth potential.

Image Courtesy of Singapore Airlines

Understandably, close rivals Qantas and Cathay Pacific Airways are also hitching a ride on their subsidiaries. Cathay, reporting a first-half loss for 2012 of HK$935 million (US$121 million), is boosting Dragonair’s operations, expanding its network in the region. Qantas, also grappling with loss-making international operations, is actively pushing the Jetstar brand across Asia, operating joint-ventures out of Singapore, Japan and Vietnam with Hong Kong planned next.

However, the parent airline risks losing its edge in the premium competition if it becomes reactionary instead of proactive in its own environment over a prolonged period.

SIA ranked third as the world’s best airline in the 2012 Skytrax survey – after Qatar Airways and Asiana Airlines. Qatar Airways wins on seats, in-flight entertainment, food, and service. It has usurped SIA’s position as the world’s best premium class operator – winning top accolades for its first class airline lounges, business class onboard catering and business class airline seat.

There is a perceived deterioration of the SIA product – or rather, SIA is not what it used to be. Being a clear leader in the field for so many years in the past, SIA may be challenged by an image issue, and that has largely to do with customer’s expectations. The higher the expectations, the less forgiving are customers of perceived lapses.

Other airlines, such as Qatar and Emirates Airline, that in the past set out to emulate SIA have caught up. By comparison, the SIA product begins to look dated and tired – its seats not the widest in the competition, its in-flight entertainment system not as user friendly, and its food quality not much to talk about. Its service, in the view of many passengers, has been affected by cost-cutting measures.

It is a race to serve the latest and the best. Cathay, for one, has only recently retrofitted its cabins with new seats. Its new regional business class will be equipped with flat beds by October this year, according to Aspire Aviation‘s sources at the Hong Kong-based carrier (“Gleam of hope for Cathay Pacific in stormy skies“, 13th Aug, 12). It has also introduced a new premium economy class, which SIA has said it will not consider. Whether Cathay’s decision is one in the right direction is debatable; nonetheless the business demands continual renewal for an airline to stay ahead of the competition.

It is time to renew and refresh, even as many customers maintain that what SIA is offering is still good. What SIA needs is a fresh injection of excitement, through new and improved facilities and new service ideas to bring back the magic and romance of air travel that in its heyday put it in a class of its own. Known to be providing a service that other airlines talk about, surely it will not want to slip into becoming just another airline.