User avatar
keesje
Posts: 9086
Joined: Thu Apr 12, 2001 2:08 am

Singapore Long-term Strategy?

Tue Mar 12, 2002 10:34 pm

SQ has bought VirginAtlantic at a bad moment. Just before 9-11 hit Atlantic Business travel.

However SQ (like most chinese) tend to go for long term investment/strategy's/relations.

Perhaps their stakes in ANZ (/Ansett) & VS are bought to cover for the time Boeing SC's & -LR's, A380 & A340-500's can/will by-pass the Singapore hub on their way from Australasia to Europe.

Strongholds in the UK & Australia/ NZ could ensure a significant part of the cake in the long term on direct Eur-Asia connections ...

keesje
"Never mistake motion for action." Ernest Hemingway
 
krisworldB777
Posts: 556
Joined: Mon Nov 06, 2000 10:28 pm

RE: Singapore Long-term Strategy?

Tue Mar 12, 2002 11:10 pm

This is what I posted earlier before the thread was annoyingly deleted for reasons I cannot understand. This is what I personally think about the SIA strategy and where it is headed although I am quite aware that many people most certainly don’t share my views!

“FYI, SIA dismissed around 70 newly trained cabin crew late last year due to the "economic situation" and immediately cut salaries for high-level managers between 5 and 15% but doesn't affect the great core of staff. SIA too has been offering early retirement and redundancies for those wishing although I wouldn’t have the faintest idea on the outcome. There is talk that there will be staff cuts and further redundancies but I would imagine that it would be a fruitless and criticized operation should they make a profit. I think that what people need to concentrate on is the long-term and this is how SIA wangled itself out of the 1998 Asian Economic Crisis. They invested heavily in their products and refrained from cost cutting where the passengers see it most and also focussed on their longhaul traffic which ultimately saved them and consequently saw them coming out with flying colours. The current situation appears different to me, I think that they are focussing at this very point on preventing the airline’s first ever loss, in my opinion not looking to the future and investing as heavily as CX in products.

But alas SIA management is certainly seasoned and know what they are doing. What SIA will however have to be careful about is the traffic on the kangaroo route between Europe and Australia. SIA enjoys extraordinary market share which in turn is a serious revenue earner and if SIA should loose the confidence of the Australian public although small, the airline will be dealt a huge blow. With Ansett’s Global Rewards gone, passengers most certainly will aim their loyalty to Qantas where they can clock up thousands of points on their Visas for free flights aboard QF, CX, BA and so forth. Therefore, it is imperative that SIA increase its involvement with Virgin, Virgin Blue especially. Ideally, Virgin Blue would become a full-service airline putting to an end the current monopoly in Australian skies for a fairly equal market share alike five years ago. One cannot underestimate the power of Virgin for SIA and it most certainly should not be snubbed of simply as a disastrous investment although it most certainly seems that way inclined. If SIA can maintain their alliances, they will score a strong clientele from both Australia and the United Kingdom which are arguably SIA’s most important and this is why SIA was so keen on taking a stake in the late Ansett. Don’t be fooled by Cheong Choong Kong and his management team. They haven’t made fundamental flaws that will cost their airline dearly. I truly do think they have a very strong and complex vision which, if managed
properly, will be of huge benefit to Singapore Airlines in the future”

Krisworld
 
SInGAPORE_AIR
Posts: 11619
Joined: Mon Nov 13, 2000 4:06 am

RE: Singapore Long-term Strategy?

Wed Mar 13, 2002 2:27 am

Singapore Airlines' investment in Virgin Atlantic was always to be long term. Despite what you hear certain narrow-minded people say about how it overpaid for Virgin Atlantic Limited, Singapore Airlines Limited's share of VS could be worth more than they paid for it in some years to come. You never know.

Virgin Blue (from now called VB) will be crucial to SIA's long term plan I think. Firstly, from an optimistic-SIA point of view, Branson will have to execute his rumour in creating a new low-cost carrier in AU and making VB a full-service airline. One must remember that Singapore Airlines did not want any real connections with Virgin Blue as umm, VB did not meet service expectations. Let's leave it at that  Big grin Anyway, with VB now a full-service carrier, it can use feeder traffic from Europe and maybe the Americas from Singapore Airlines to it's own advantage and hence increasing profit. And with the huge boom in Europe - Australasia traffic especially during the summer and winter months, this would be to VB's advantage. In addition, Singapore Airlines Limited could then boast many "tour Australia" deals and the like with convenient conenctions with VB. Much like the Escapade thing with VS, SIA, ANZ and AN before the latter vanished.

However, this much depends on Singapore Changi Airport being able to provide quick connections from Europe to Australia on SIA flights. We could argue if they could do this with the third terminal at SIN, however it has not been built yet and we do not know the design specifications. However, that would be crucial if most people did not want to discover a spectacular island-nation full of culture, glitz and glamour. With the sonic cruiser going to be able to offer non-stop flights between Europe and Australia unfortunately, this point will be extremely crucial, along with SIA continuing to maintain it's stance as the best carrier inflight-service and amenity-wise.

Part 2 shortly...
Anyone can fly, only the best Soar.
 
SInGAPORE_AIR
Posts: 11619
Joined: Mon Nov 13, 2000 4:06 am

RE: Singapore Long-term Strategy?

Wed Mar 13, 2002 3:14 am

Some would like to rather concentrate their activities on SIA's investment in Virgin Atlantic Holdings, of which SIA owns 49.5%. Though the former company will post a loss due to Virgin Atlantic's reliance on the weak North American sector, I think some people have missed the point completely. The fact is that VS was a long-term investment. I hardly imagine that if there was no September 11, SIA would have pulled out right now because theoretically, the value of VS would have risen. No, of course not. Therefore, during times of crisis I see no reason for SIA to regret their investment. The N. American sector will pull back and there is no doubt about it. I have just posted that the FAA of the US expects recovery to be most visible during 2003. Then, VS can go back into profit, and hence give SIA a nice 49% of it's profit. One must remember that VS aided SIA, no matter how small the percentage may be of it's contribution, to record profits in the FY00/01. Virgin Atlantic is a brand that the UK people trust, and I honestly believe that despite what some people on the forum may say about Branson, his personality or his companies as a whole. If they continue that then they really do have a good chance against BAW and the other carriers due to their superior product and service standards.

As for ANZ, it was quite frankly a bit of a disaster. Yes, you read correctly and there is no need to re-read the last sentence; you read correctly. The ANZ investment failed because of the NZ Govt's dithering, stalling, ignorance and hypocritical-stance (the NZ Govt. was and probably still is a voice for opening up airlines to foreign ownership (source: Flight International), however it hardly put it's own words into action) much attributed to the failings and midemeanours of the woman, Helen Clarke. Furthermore, the ANZ mangement of AN was ridiculous. How an airline, famed for it's cuisine and on-board service around the region, made AU1 million loss or more a day is beyond my comprenhension. With regards to SIA, some would like to blame it on Dr. Cheong Choong Kong, CEO and Deputy Chairman of Singapore Airlines, and others, however their point is flawed. SIA wanted AN the most. No-one can deny that. AN was the jewel that SIA wanted, a goal. Why then would Dr Cheong sabotage the whole operation as some are implying by just sitting back and letting the thing rest. Maybe he did not know, or maybe the SIA voice was overuled. However, the outcome could've been far different. It would be illogical for SIA to just sit back while their "jewel" slips further and further away, not only from them, but from existence. It's a shame that AN has been done away so quickly, leaving the market open to Qantas and to a lesser extent Virgin Blue.

Whatever the case may be, Singapore Airlines Group will continue to survive, innovate, deliver superior customer satisfaction and adapt to the environment in which it operates. With the departure of the illustrious Dr. Cheong, there are many in the airline that are capable of runnig as CEO. Though I wish not to comment on who could be the next CEO at this time, I'm sure the choice will be wisely taken.

So, in essence, Singapore Airlines is now, and will be more than ever a Great Way To Fly



Where Somerset Maugham Penned Many A Great Tale
Raffles. Trishaw To Beach Road.
SQ To Singapore. Our Home.

Anyone can fly, only the best Soar.
 
Greg
Posts: 5539
Joined: Sat May 28, 2005 1:11 am

RE: Singapore Long-term Strategy?

Wed Mar 13, 2002 3:19 am

It won't be if they don't set aside the resources for CRM and more training.

The quickest way to tarnish your image is to kill your passengers.

 
User avatar
keesje
Posts: 9086
Joined: Thu Apr 12, 2001 2:08 am

RE: Singapore Long-term Strategy?

Wed Mar 13, 2002 5:39 am

Hmmm, Singapore

< a spectacular island-nation full of culture, glitz and glamour.>

Have you ever been in Singapore ?! I must have been in a different place... Its very clean, lots of concrete and not aand I didn´t see glitz & glamour.

Take a free tour (sponsored by SQ & Government) and you will see it is very hot, empty & much too clean/ disiplined to spend more then one day on a holiday ..

cheers

keesje
"Never mistake motion for action." Ernest Hemingway
 
Greg
Posts: 5539
Joined: Sat May 28, 2005 1:11 am

RE: Singapore Long-term Strategy?

Wed Mar 13, 2002 5:41 am

It's a good place to stop on your way to Phuket.
 
SInGAPORE_AIR
Posts: 11619
Joined: Mon Nov 13, 2000 4:06 am

RE: Singapore Long-term Strategy?

Wed Mar 13, 2002 7:07 am

Keesje: hehehe. Well I have been shopping in Singapore and stayed there. It's a very clean and modern city and the restaurants are nice. Singapore Airlines sponsors some annual Jazz festival or something. I'm sure some Singaporean can come and defend their country!  Big thumbs up

Anyway what do you think about my posts? I am proud of them to be honest. I'm not one to blow my own trumpet but I did put a lot of effort into that.  Big grin
Anyone can fly, only the best Soar.
 
User avatar
keesje
Posts: 9086
Joined: Thu Apr 12, 2001 2:08 am

RE: Singapore Long-term Strategy?

Wed Mar 13, 2002 7:23 am

Singapore_Air you are sure motivated for SQ. Just don´t push it too much.

It seems to me some airliners.net collegeas are starting to like see SQ taking hits because they can laugh at you because of it.

Making mails shorter & more objective could make them more effective. Say you write a letter of application one day to SQ, then it has to be short & objective ...

cheers

keesje
"Never mistake motion for action." Ernest Hemingway
 
9V-SVA
Posts: 1747
Joined: Wed Aug 29, 2001 3:54 pm

RE: Singapore Long-term Strategy?

Wed Mar 13, 2002 8:27 am

SIA never wanted a stake in Virgin, it only wanted transatlantic routes which the UK would not allow it to have.

Look how quickly SIA wrote off its stake in Virgin after September 11. Obviously, it never wanted Virgin as a long-term shareholding.

I'm Singaporean, and I do find it boring. Every weekend, my family has to rack our brains to think of where to go out.

9V-SVA
9V-SVA | B772ER
 
nicolasrolland
Posts: 155
Joined: Wed Jun 27, 2001 11:16 am

RE: Singapore Long-term Strategy?

Wed Mar 13, 2002 9:01 am


Well as for the topic question : I think that chinese vision is always long terme and especially in Singapore
if they invested in Virgin I would think that they tought very longly about the long terme returns...

As for how is Singapore  Smile/happy/getting dizzy well I have been in Singapore and opposed to some people said in this forum it's a wonderfull place to live in... yes.. kinda weird coming from a french guy but I had to chance
to work for 6 months and it was the best working
experience I ever lived...

Pros :
People work hard!!! no lazyness
Lots of nice pubs, nice restaurants,
It's the place where Western way of
life meet the traditions...
It's a mixe of super advanced technologies
and traditions...
very near all the beautiful paradise islands  Smile/happy/getting dizzy
of coz Very Clean...
of coz all the best food in the world
is present there...
Everything is so efficient...  Smile/happy/getting dizzy

Chinese might look serious first...
it's just because we westerner have the
reputation to always be very Unpatient
direct... so chinese know too well how
some expats are... but once you
show that you understand them...
not as a lousy way but as a really
"Bond" way.. well they are pretty cool
Singapore and Malaysian chineses are
very fun to be with!!! Malay also !!!


and Im going there again this August (woohoo!)  Smile/happy/getting dizzy
and even better with the Sia Girls of Singapore
Airlines... on a nice 777  Smile/happy/getting dizzy


Cons : well.. huh...
if you listen to all the propaganda that
western countries say without visiting
this beautiful country you could think
it's a bit restricted.. but it is not!!!
it's for the best...  Smile/happy/getting dizzy hehe My say
here so as in my philosophy course
would be go live there at least 1 year
and try to be open and not closed mind
and you will discover such a nice country...
and you will learn a lot  Smile/happy/getting dizzy


I guess it shows that I love this place eh  Smile/happy/getting dizzy
and that I plan to continue my studying of
Mandarin  Smile/happy/getting dizzy
oh their airport is very nice...  Smile/happy/getting dizzy


Well See ya all  Smile/happy/getting dizzy
Nicolas from the French part of Canada  Smile/happy/getting dizzy
 
aussie_
Posts: 1600
Joined: Mon Dec 11, 2000 10:39 am

RE: Singapore Long-term Strategy?

Wed Mar 13, 2002 12:50 pm

As opposed tot he view mentioned above, I think Virgin Blue will stay as is and VS together with SIA will create their own new "boutique" airline in Australia. This will allow Star back into Australia.

There are news reports of such an airline floating around as we speak...
 
tsentsan
Posts: 1921
Joined: Mon Jan 28, 2002 10:48 pm

RE: Singapore Long-term Strategy?

Wed Mar 13, 2002 12:58 pm

Tesna - Do you keep that post on your desktop? You have repeated that 4 times now. Please, thanks. We do have a *search* function.
NO URLS in signature
 
aviasian
Posts: 1244
Joined: Mon Jan 08, 2001 8:11 am

RE: Singapore Long-term Strategy?

Wed Mar 13, 2002 1:42 pm

Tsentsan: You know the old saying . . . that if you throw dung on a smooth wall hard enough and repeat it often enough, a little will stick . . . and soon more will stick . . .

Tesna is therefore midway through this most inspiring exercise.

SIA, like many other major corporate entities takes risk, and have made some less than enlightened investments. This has caused it some indigestion . . . but it sure is better than many others who have never ventured into anything, and never achieved anything.

KC Sim
Bangkok
 
jesseycy
Posts: 322
Joined: Fri Aug 03, 2001 2:15 pm

RE: Singapore Long-term Strategy?

Wed Mar 13, 2002 3:25 pm

Hmm, imagine what would it be like now if SIA did manage to take over Ansett! It would work out pretty well, actually.... AirNZ wouldn't be so badly off now, SIA would be happy with the feeder traffic from Ansett! (Assuming that SIA keeps Ansett afloat)

Why on earth did AirNZ bought over Ansett? Guess the Star Alliance was not that strong then! And I'm saying this as a New Zealander!
 
carmy
Posts: 590
Joined: Sat Oct 06, 2001 12:00 am

RE: Singapore Long-term Strategy?

Wed Mar 13, 2002 6:36 pm

I remember reading in Asian Aviation that SIA actually wanted to turn Ansett into a premium airline that targeted premium business travellers, not unlike the kind of travellers that currently fly SIA. They would then be able to feed into SIA's SIN-Europe routes, and SIA would make lots of money as a result. SIA did have a concrete plan for Ansett, but very unfortunately Air NZ had to buy Ansett instead.
 
duff
Posts: 109
Joined: Thu Oct 11, 2001 10:29 am

RE: Singapore Long-term Strategy?

Thu Mar 14, 2002 9:13 pm

Jesseycy

Air NZ bought into AN because the the Australian government reneged on a deal that would allow Air NZ to fly in Australia so AN was the only way in.
 
SInGAPORE_AIR
Posts: 11619
Joined: Mon Nov 13, 2000 4:06 am

RE: Singapore Long-term Strategy?

Thu Mar 14, 2002 10:02 pm

Carmy: That's quite interesting actually. Can you tell us anymore? Not that it would ever happen now anyway but it would be nice!
Anyone can fly, only the best Soar.

Popular Searches On Airliners.net

Top Photos of Last:   24 Hours  •  48 Hours  •  7 Days  •  30 Days  •  180 Days  •  365 Days  •  All Time

Military Aircraft Every type from fighters to helicopters from air forces around the globe

Classic Airliners Props and jets from the good old days

Flight Decks Views from inside the cockpit

Aircraft Cabins Passenger cabin shots showing seat arrangements as well as cargo aircraft interior

Cargo Aircraft Pictures of great freighter aircraft

Government Aircraft Aircraft flying government officials

Helicopters Our large helicopter section. Both military and civil versions

Blimps / Airships Everything from the Goodyear blimp to the Zeppelin

Night Photos Beautiful shots taken while the sun is below the horizon

Accidents Accident, incident and crash related photos

Air to Air Photos taken by airborne photographers of airborne aircraft

Special Paint Schemes Aircraft painted in beautiful and original liveries

Airport Overviews Airport overviews from the air or ground

Tails and Winglets Tail and Winglet closeups with beautiful airline logos