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Why Does SIA Want AN?  
User currently offlineRMenon From Trinidad and Tobago, joined Jun 2001, 116 posts, RR: 0
Posted (14 years 11 months 3 weeks 1 day 15 hours ago) and read 1852 times:

Every press release/news article I read talks either about SIA wanting to "help" Ansett, or take a pie of the "lucrative" Aus domestic market.

Isn't this is a redherring? First - no for-profit business will "help" another company, second - the Aus domestic market may be lucrative but Impulse and VB didn't find a fantastic growth potential either.

Methinks that future long-range and faster aircraft like the Sonic Cruiser, A345, 777LR could mean the end of SIN as a big hub on the kangaroo route. Singapore does not have the population mass to support a lot of local traffic either. So when QF/BA/LH/AF start nonstop Europe/Aus flights, and some long/thin routes to South and South East Asia can be viable as nonstop flights from US, SIA could be in big trouble.

This could explain their acquisition strategy - VS in Europe (with LHR slots), AN,ANZ, and Air India (future growth potential and route rights).

Any other ideas?

1 replies: All unread, jump to last
User currently offlineAl From Australia, joined Jun 1999, 593 posts, RR: 2
Reply 1, posted (14 years 11 months 3 weeks 1 day 3 hours ago) and read 1826 times:

You got it in one - AN is the closest thing SQ will ever have to a potential 18 million "domestic feeder pax". There is one other overriding logical reason - SQ want to hurt QF badly, and AN can be their instrument in that aim. There is no doubt that the product of AN International is miles ahead of QF - given half a chance to expand the reach of AN International and once more people try AN International, then SQ are banking they will not return to QF for future trips.
Cheers. Al.

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