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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 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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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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Tata-SIA Airlines: Silver lining in a dark cloud?

Two big names joining hands – Indian conglomerate Tata and internationally renowned Singapore Airlines (SIA) – cannot go wrong. So it must seem. Besides, both organisations are not new to the aviation business. The Air India that the airline industry has come to know today started as Tata Airlines in 1932. It was renamed in […]

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Premium economy: Singapore Airlines catches up, at last

Johnny come lately. Was it pride or misplaced hope that took Singapore Airlines (SIA) that long to finally decide it would introduce – or, rather, re-introduce – premium economy in its fleet? The Singaporean flag carrier announced last week it would offer the sub-class next year as part of a S$347 million (US$325 million) cabin […]

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The Chinese connection

Not very good news these past weeks from Chinese carriers as Air China reported first quarter profit falling 63% to 92.7 million yuan (US$14.8 million) from 252.3 million yuan last year, despite an increase in revenue of 7.5% to 24.4 billion yuan. This was followed by China Eastern Airlines (CEA) posting a deeper loss of […]

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Competing for dominance in Asean skies

The 10-nation bloc Association of Southeast Asian Nations (Asean) of Brunei Darussalam, Indonesia, Kampuchea, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand and Vietnam will finally see the full implementation of the Asean Open Skies policy next year. That is, if things go as planned. First mooted some 20 years ago, it has been a long time […]

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