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Singapore Airlines should revisit half-baked strategy

A350-900’s long-haul 253-seat configuration suboptimal 14.4% smaller Economy cabin than Cathay’s A350 hard to justify revenue premium SIA ex-fuel CASK 9.28% higher since low point reached in FY12/13 H1 with 14.0% lower yield Q2 yield of 10.4 c/RPK lowest ever seen since FY11 Soaring cost base compounded by intra-group cannibalisation Krisflyer point accrual on Scoot/Tigerair should […]

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Is budget long-haul but a pipe dream?

Only days after announcing plans to launch transatlantic flights in five years, Ryanair retracted its position, abandoning the plans. In a statement, it said it “has not considered or approved any transatlantic project and does not intend to do so.” This ran contrary to the earlier announced approval by its board to mount budget flights […]

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Is Singapore Airlines getting its mojo back?

SIA’s return on capital employed (ROCE) collapsed from pre-GFC threshold of 8% SIA’s break-even load factor below its actual L/F in 12 of past 15 quarters Premium economy progress partially offset by initial launch pricing A380’s first C3 check offers excellent PEY introduction timing SIA should retrofit New Business & New Economy classes on A380s as […]

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Tigerair not out of the woods

At last Tigerair is making a profit. The Singapore budget carrier reported a positive FY2014/15 third-quarter with a profit after tax of S$2.2 million (US$1.76 million), compared to a hefty loss of S$118.5 million in the previous year. The improved performance was achieved on the back of a reduction in costs by 1.5% and capacity by […]

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Interview: Jetstar Hong Kong chief executive Edward Lau

It has been a long wait for Jetstar Hong Kong since its application (“Jetstar Hong Kong’s long and costly wait to fly“, Nov 21st, 14). Almost two years after its launch, the airline has yet to receive approval from the Hong Hong Kong authorities to fly with its air transport licence application with the Air […]

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Qantas/China Eastern partnership: Dressing up an old arrangement

Qantas and China Eastern Airlines (CEA) announced a new agreement that the airlines said will enlarge their existing codeshare arrangement signed in 2008 for a deeper level of commercial co-operation on flights between Australia and China. A statement issued by Qantas referred to the new relationship as a “joint venture”. In the application to the […]

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Is there a future for Tigerair?

It has to happen, and it is happening. The anticipated increased control of the long ailing and unprofitable Tigerair by parent airlines in both Singapore and Australia was announced almost simultaneously, an unlikely coincidence. Tigerair Singapore Singapore Airlines (SIA) will increase its stake in Tigerair from 40% to a majority of 55%. The low-cost carrier […]

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Could Singapore Airlines soar with limitless expanse?

Lack of co-ordination among SIA subsidiaries a significant issue Tigerair & Scoot have duplicate reservation systems, PSSs, incompatible websites & products Vistara & SilkAir could share fleet, seats and fuel procurement to gain economies of scale Codeshare with SIA to tap India-Australia connecting traffic Vistara to launch premium economy product in ‘2-and-a-half class’ Premium economy a long-haul […]

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Is Singapore Airlines better off without its subsidiaries?

There comes a time when the question must be asked: Is Singapore Airlines (SIA) better off without its subsidiaries? Besides an engineering and a cargo arm, SIA also owns three carriers: wholly-owned regional carrier SilkAir and long-haul budget subsidiary Scoot, and 40%-owned budget carrier Tigerair. Scoot’s performance has not been reported separately, but neither SilkAir […]

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Tigerair sinks deeper

The tide has not changed for Tigerair as the budget carrier which is 40% owned by Singapore Airlines (SIA) continues to be plagued by poor performance. Tigerair posted an operating loss of S$16.4 million (US$13.1 million) for the quarter ended June 30, 2014, which is the first quarter of its new financial year. This was […]

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