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How Can SQ Make Money On Their New J Class?  
User currently offlinePaul From United Kingdom, joined Feb 2005, 374 posts, RR: 3
Posted (7 years 10 months 3 weeks 3 days 18 hours ago) and read 4884 times:

I have just watched the promotional footage from Singapore airlines. The new products look absolutely amazing. I am wondering how on earth with only 4 seat per row in J will they be able to make any money from the product. Especially when the product will be available on the normal business routs of Paris, Frankfurt etc. If it was restricted to the ultra long haul flights I could understand offering a product that like.

How will they make money from this product without loosing their price sensitivity to their key competitors?

Regards

Paul


Veni, vidi, vici.
14 replies: All unread, jump to last
 
User currently offlineFuturecaptain From , joined Dec 1969, posts, RR:
Reply 1, posted (7 years 10 months 3 weeks 3 days 18 hours ago) and read 4878 times:

They will be increasing fares for the new product.

User currently offlineMptpa From United States of America, joined Feb 2006, 546 posts, RR: 0
Reply 2, posted (7 years 10 months 3 weeks 3 days 18 hours ago) and read 4806 times:

Well, it is all about pricing... for ex: CDG-SIN return on F is close to $14k, and J is $9k, etc. Yield is high, and customers who want luxury and comfort will pay. Have you seen the SQ flights lately. All the flights I have been on have been nearly full. This is a great differentiator and until another carrier emulates them, they will make money and then will innovate to provide more....

I for one will not pay that much unless my employer/customer pays for it. But there are people with high disposable income that will frequent these services.


User currently offlinePiercey From Sweden, joined Nov 2005, 2233 posts, RR: 1
Reply 3, posted (7 years 10 months 3 weeks 3 days 17 hours ago) and read 4776 times:

For future reference:

SA = South African Airways
SQ = Singapore Airlines

Wow was I confused when I opened this thread :P

Either way, as said before, expect a price hike, and a big one at that.



Well I believe it all is coming to an end. Oh well, I guess we are gonna pretend.
User currently offlineFlyDreamliner From United States of America, joined Jan 2006, 2759 posts, RR: 15
Reply 4, posted (7 years 10 months 3 weeks 3 days 17 hours ago) and read 4727 times:

Quoting Piercey (Reply 3):
Either way, as said before, expect a price hike, and a big one at that.

They had better watch out in their price hike, or they might start coming close enough to some of their less expensive competitors fares for C.

Singapore's service is great, but at some point, you have to wonder if it is worth it to as many fliers as the price gets higher.



"Let the world change you, and you can change the world"
User currently offlineSingaporeBoy From Singapore, joined May 2005, 141 posts, RR: 0
Reply 5, posted (7 years 10 months 3 weeks 3 days 13 hours ago) and read 4594 times:

The price is approximately 10-20% more than what they were offering when they were using the 747-400s.As SQ is one of the only 2 airlines flying non stop from Singapore to Paris i am sure premium passengers who usually are corporate clients and businessmen dont care how much the airfare is as they are not the ones paying.And for those who are paying its not only the service they are paying for...its the space which is the most premium item of anything on an aircraft.

User currently offlineLufthansa From Christmas Island, joined May 1999, 3217 posts, RR: 10
Reply 6, posted (7 years 10 months 3 weeks 3 days 13 hours ago) and read 4584 times:

Quoting SingaporeBoy (Reply 5):

Lets not forget Singapore is also the main banking up for the whole of Southeast asia. Banks, have deep pockets and a good product is going to get them the contracts. Its not just singapore based banks either, Loads of european banks, Australian banks, and American banks all have significant operations there due to the foreign currency trading going on there. Think of it like this. If the average trader turns over a billion dollars a year, (yes - no joke on this one, thats just how much we're talking) then what the hell is another 20% extra for that airfare, for a product which will definately get you a good nights sleep? Yes, puts things in perspective, doesn't it.


User currently offlinePaul From United Kingdom, joined Feb 2005, 374 posts, RR: 3
Reply 7, posted (7 years 10 months 3 weeks 3 days 3 hours ago) and read 4300 times:

I am suprised it is only a 20% premium over the normal price. When you consider that BA's equivalent service product has twice the number of seats per row than the new SQ, with other airlines having 7 seats in a typical J Class row. The math is simple, a 20% premium does not cover the disparity between revenues two of comparitive airlines will make on the route. However with SQ's current financial status, I think the seating space issue takes less precedence with SQ than BA or Air France!

Paul



Veni, vidi, vici.
User currently offlineZvezda From Lithuania, joined Aug 2004, 10511 posts, RR: 64
Reply 8, posted (7 years 10 months 3 weeks 3 days 3 hours ago) and read 4239 times:

Also, SQ's new C class pitch is 51" so the seating density is not as low as one might assume from just knowing that it's 4 abreast.

User currently offlineAri From UK - England, joined May 2005, 131 posts, RR: 0
Reply 9, posted (7 years 10 months 3 weeks 3 days 3 hours ago) and read 4202 times:

Does anyone know if SQ are going to just use this configuration on their 773ERs?

aRi


User currently offlineZvezda From Lithuania, joined Aug 2004, 10511 posts, RR: 64
Reply 10, posted (7 years 10 months 3 weeks 3 days 3 hours ago) and read 4176 times:

Quoting Ari (Reply 9):
Does anyone know if SQ are going to just use this configuration on their 773ERs?

This is the only configuration planned for SQ's B777-300ERs. It might also get fitted to some of SQ's newer B777-200ERs. These seats will not be fitted to SQ's JumboJets. The A340-500s already have good loads and yields, so it makes little sense to reduce the seating density.


User currently offlineJimyvr From , joined Dec 1969, posts, RR:
Reply 11, posted (7 years 10 months 3 weeks 3 days 3 hours ago) and read 4148 times:

Quoting SingaporeBoy (Reply 5):
i am sure premium passengers who usually are corporate clients and businessmen dont care how much the airfare is as they are not the ones paying

Actually, some companies are pretty price-conscious these days...

Quoting SingaporeBoy (Reply 5):
nd for those who are paying its not only the service they are paying for...its the space which is the most premium item of anything on an aircraft.

...but if the service and amenity matches up the value what they pay, they' wouldn't mind at all, I guess.


User currently offlineHeeseokKoo From South Korea, joined Jan 2005, 652 posts, RR: 1
Reply 12, posted (7 years 10 months 3 weeks 3 days 2 hours ago) and read 4109 times:

In Korea, SQ 773ER's J class requires additional $250 surcharge for one way, (HKG-SIN is $150) which makes 10~20% expensive.

User currently offlineMaverickM11 From United States of America, joined Apr 2000, 17681 posts, RR: 46
Reply 13, posted (7 years 10 months 3 weeks 3 days 2 hours ago) and read 4048 times:

Quoting Mptpa (Reply 2):
Yield is high, and customers who want luxury and comfort will pay.

They better hope so!



E pur si muove -Galileo
User currently offlineFlying-B773 From Singapore, joined Apr 2001, 390 posts, RR: 0
Reply 14, posted (7 years 10 months 3 weeks 2 days 17 hours ago) and read 3769 times:

The Additional Surcharge do give people a surprise. Not all people are aware of the additional and were asked to pay at the airport. Its quite a hefy amount though, USD300 for full C class fare, and USD500 for a RTW C class fare. If you are flying that route on these 2 types of tickets, get your credit card/s ready.

regards,
North


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