Singapore Airlines facing tougher competition on prized routes: WSJ

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Wall Street Journal said Singapore Airlines and its regional rivals such as Cathay Pacific have seen their ability to charge more for their premium services erode in recent years.

The local airline is facing stiff competition from Middle East-based carriers such as Emirates Airline and Qatar Airways.

This is the case on it’s prized European and U.S. routes, while highly aggressive discount carriers have taken away leisure travellers on shorter routes within Asia.

But these are not the only challenges faced by the airline.
Singapore Airlines said the recent fuel prices volatility poses another challenge. The airline’s fuel bill rose 9.2% on year to S$1.02 billion in the December quarter.
Fuel prices are rising and are expected to remain volatile, Singapore Airlines said, adding that it has hedged 41% of its jet-fuel requirements at a weighted average price of US$65 a barrel in the current quarter, said WSJ.

13 COMMENTS

  1. It is said that retaining a customer is a lot cheaper n better than trying to get a new one. But based on my own first hand experience SQ probably has one of the worst frequent flyer redemption program i have seen. They make u accumulate points and than make u jump the hoops and take u on the merry go round plus other fine print obstacles to make sure u have difficulty redeeming your points for upgrades. SQ mgt should wake up n take a hard look at this.

  2. I have been flying SQ for more than 10 years. But recently flew Emirates as I am going to a place where SQ does not fly to. It’s my first time flying Emirates. Comparing the Biz Class experience between SQ and Emirates, I feel Emirates have more of an appeal as they are not stingy on their benefits. Small things really matter. The Emirates lounge in Dubai beats the SQ lounge in T2 or T3 hands down in terms of the facilities and comfort they offer. As for in flight service, Emirates offer Bvlgari toiletries kit. In SQ, you even have to ask for a eye mask nowadays. Emirates biz class is configured 2-3-2 while SQ is normally 1-2-1. The seats in SQ is obviously bigger and more spacious. But you can see why SQ will never win on pricing of tickets due to the smaller number of seats available. An biz class ticket to London cost 6k while Emirates cost 4.5k. You can see why SQ is always on the losing end in the price war. The saving grace is still SQ’S service level. But that too is deteriorating over time noticeably after flying so long with SQ. Considering that Biz class passengers are the ones that will make the airline profit in each flight, SQ has to buck up and not forget on the little details in the passenger experience. I hope SQ can address the overall appeal to their consumers with the recent order of new planes to replace their aging fleet. SQ is Singapore’s pride. It will be sad to see SQ being mismanaged and end up being another NOL or Keppel.

  3. Just a thought. Probably the only middle eastern airline that poses the greatest threat to sg is emirates
    Has any thought that perhaps it is because an ‘ang mo’ is at the helm of emirates. Perhaps sg air should hire an ang mo foreign talent. Perhaps the govt should allow an ang mo to run at sg air. I know i will get flack for staying this. But it is fact. Emirates is only doing well because of the Ang mo.