danialanwar
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SQ Flight Reductions

Thu Mar 20, 2003 10:06 pm

From SQ's website:

· All services to Brussels and Madrid will be suspended from 30 March to 31 May 2003.
· Frankfurt will be reduced from 14 per week to 12 per week between 6 April and 31 May 2003.
· Manchester will be reduced from seven to six per week from 7 April to 31 May 2003.
· Amsterdam will be reduced from seven to five per week from 9 April to 31 May 2003.
· All services to Las Vegas and Chicago will be suspended from 7 April to 31 May 2003.
· San Francisco will be reduced from 14 to ten per week from 9 April to 31 May 2003.
· Los Angeles will be reduced from 14 to 12 per week from 7 April to 31 May 2003.
· New York will be reduced from 11 to nine per week from 6 April to 31 May 2003.
· Seoul will be reduced from 22 to 20 per week from 9 April to 31 May 2003.
· Hong Kong will be reduced from 41 to 33 per week from 9 April to 31 May 2003.
· Nagoya will be reduced from seven to five per week from 8 April to 31 May 2003.
· Fukuoka will be reduced from seven to five per week from 1 April to 31 May 2003.
· Hiroshima will be reduced from four to two per week from 1 April to 31 May 2003.
· Taipei will be reduced from 20 to 16 per week from 1 April to 31 May 2003.
· Kaohsiung will be reduced from three to two per week from 1 April to 31 May 2003.
· Jakarta will be reduced from 49 to 42 per week from 1 April to 31 May 2003.
· Denpasar-Bali will be reduced from 28 to 21 per week from 1 April to 31 May 2003.
· Surabaya will be reduced from nine to seven per week from 1 April to 31 May 2003.
· Kuala Lumpur will be reduced from 49 to 42 per week with the withdrawal of one daily flight from 24 March.
· All services to Mauritius will be suspended from 15 April until 31 May 2003.
· Dhaka will be reduced from seven to five per week from 7 April until 31 May 2003.

htp://www.singaporeair.com
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docpepz
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RE: SQ Flight Reductions

Thu Mar 20, 2003 10:33 pm

Why such drastic measures? surely it's not just SOLELY cos of the Iraq war! Especially the Japan flights.
 
SInGAPORE_AIR
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RE: SQ Flight Reductions

Fri Mar 21, 2003 1:25 am

This is very serious.

Mr. Koh Boon Hwee said of SIA's reaction to 11 September 2001, that SIA looked "like the boy who cried wolf", referring to the service cuts and aircraft deferrments.

As shocking as it seems, I comment, is SIA doing the same again?

I think we all hope not.

"They are managing capacity down so that the load factors remain fairly profitable. This is a similar sort of strategy to what they did in the post 9-11 environment and it accommodated an anticipated drop in traffic," said John Casey, airline analyst at DBS Vickers Securities

This is about 8% of total capacity and would be 9% of revenue lost in FY0304.

"The implementation of a war surcharge on cargo will enhance revenues," said Casey.
Anyone can fly, only the best Soar.
 
SInGAPORE_AIR
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RE: SQ Flight Reductions

Fri Mar 21, 2003 1:32 am

What did surprise me was the Las Vegas flights being cut.

"Singapore Airlines, which introduced nonstop service between Hong Kong and Las Vegas last summer, has no plans for service reductions, but spokesman James Boyd said the situation is being closely monitored.

James Boyd said the airline already has begun attempting to form new alliances with Strip properties for package deals that would encourage tourism from Southeast Asia. He said the pre-emptive move is not an indication that demand is weak, although Asian tourists traditionally have shown the most caution about traveling in times of turmoil."

Las Vegas Sun .com
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Ex_SQer
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RE: SQ Flight Reductions

Fri Mar 21, 2003 3:11 am

And is this the same James Boyd who told the press soon after the SQ6 incident that there were no reports of casualties....?

Pretty drastic measures, and I certainly hope they'er not crying wolf, but most of them don't come as a surprise. They are either (1) tourist/leisure-reliant routes (2) routes that are stuggling with loads (3) unprofitable routes or (4) routes to cities vulnerable to lower traffic in the event of war. In any case, April and May are generally very weak months for passenger traffic.

 
SInGAPORE_AIR
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RE: SQ Flight Reductions

Fri Mar 21, 2003 3:19 am

Yes, this is the same James Boyd who soon after the tragic accident in question said there were no fatalities. However, he was being informed via the Taiwanese authorities on the ground at Chiang Kai Shek International Airport.

Anyway, I wonder if there are also aircraft changes. Maybe the A340-300s will be used more.
Anyone can fly, only the best Soar.
 
Ex_SQer
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RE: SQ Flight Reductions

Fri Mar 21, 2003 3:33 am

Sorry, but I wouldn't give too much credence to this guy's statements. He shouldn't have said what he said re: SQ6.

SQ is pretty short of 777 pilots, so this should give them some temporary breathing space.
 
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apuneger
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RE: SQ Flight Reductions

Fri Mar 21, 2003 4:06 am

All services to Brussels and Madrid will be suspended from 30 March to 31 May 2003.

Damn...Let's hope it's not true

Ivan
Ivan Coninx - Brussels Aviation Photography
 
SInGAPORE_AIR
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RE: SQ Flight Reductions

Fri Mar 21, 2003 4:36 am

What can I say? It's true.  Sad
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United777
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RE: SQ Flight Reductions

Fri Mar 21, 2003 5:14 am

Suspending and reducing flights all over the world except India. Could we say India is SQ's biggest market now?
 
BIK
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RE: SQ Flight Reductions

Fri Mar 21, 2003 5:18 am

SQ is also not reducing or cutting services to Aus/NZ.

 
United777
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RE: SQ Flight Reductions

Fri Mar 21, 2003 5:23 am

Yea India, Australia and New Zealand. Are there any flight changes expected there soon?
 
SInGAPORE_AIR
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RE: SQ Flight Reductions

Fri Mar 21, 2003 5:23 am

Well no.

SIA is not cutting France, the UK, among others.

India is a fantastic market for Singapore Airlines as they can charge overly-high fares out of India because of what I presume is a non-official SIA/Air India cartel running.

Marvellous.
Anyone can fly, only the best Soar.
 
Ex_SQer
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RE: SQ Flight Reductions

Fri Mar 21, 2003 5:35 am

India is a fantastic market for Singapore Airlines as they can charge overly-high fares out of India because of what I presume is a non-official SIA/Air India cartel running.

Oh dear. Please refrain from making such irresponsible speculative statements. Price fixing and cartel pricing - even "non-offical" - is illegal.

FYI, India is a high volume market and SIA enjoys good yields there. SIA has a solid brand name and they are in a position to charge premium fares in India in accordance to market demand. It is not unusual for SQ to have full P/J classes to/from BOM and DEL. The fares are market-driven.
 
SInGAPORE_AIR
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RE: SQ Flight Reductions

Fri Mar 21, 2003 5:37 am

Well yes but there have been numerous reports about how a duopoly obviously benefits both SIA and Air India.
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ConcordeBoy
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RE: SQ Flight Reductions

Fri Mar 21, 2003 6:57 am

Nooo!!!!!!! Not HKG-LAS  Sad  Sad
Faire du ciel le plus bel endroit de la terre c'est impossible sans Concorde!
 
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airzim
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RE: SQ Flight Reductions

Fri Mar 21, 2003 7:02 am

They got a double whammy this week. The more immediate problem is not the war, it is the Asian flu. Traffic has plummented to HKG, BKK, TPE, and SGN. I would guess that the Asian services are mostly affected by that, including LAS services.

TG, CX, CI and others are seeing the same traffic problems.
 
Ex_SQer
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RE: SQ Flight Reductions

Fri Mar 21, 2003 7:54 am

S_Air: Duopoly does not equate cartel. There is no collaborative price fixing going on. Rather, SQ is capturing consumer surplus (ie what people are really willing to pay for SQ's premium service) and they'd be foolish not to in this situation. Obviously, having few competitors does help. In any case, SIN-India is strictly not an SQ-AI duopoly because IC also offers significant capacity to both MAA and DEL.
 
SInGAPORE_AIR
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RE: SQ Flight Reductions

Fri Mar 21, 2003 8:11 am

Ex_SQer: That's what I meant but officially it isn't a cartel. But really, Air India has more or less the same fares as Singapore Airlines doesn't it?

----
Singapore Airlines, which inaugurated nonstop service between Las Vegas and Hong Kong last summer, will suspend its twice-a-week flights for two months beginning in April because of low demand anticipated with the outbreak of war in Iraq.

In the meantime, Singapore's move suspending Las Vegas flights caught tourism officials and executives at McCarran International Airport by surprise.

"We're disappointed," said Rob Powers, a spokesman for LVCVA. "This pretty much caught us by surprise. We're confident it will be a temporary situation because the partnership between Las Vegas and Singapore Airlines is a good one and will continue to work."

"It came as a complete surprise to us," added Grey.

Representatives of Singapore Airlines said today that it is suspending 65 weekly flights, including all of its service to Las Vegas and Chicago, due to "softening demand" from the war.

Singapore spokesman James Boyd said the airline's current plan is to suspend the flights from April 7 through May 31. That means the last nonstop flight from Hong Kong would arrive in Las Vegas April 7 because of the schedule.

Boyd said that plan could change, depending on what occurs in Iraq.

Singapore began Boeing 777 service from Hong Kong in August, bringing an average 285 seats per flight to the Las Vegas market. While Singapore officials said they were working to increase demand in the market, especially for Nevadans traveling to Southeast Asia, they have been satisfied with the number of seats sold on the route.
----

Las Vegas Sun .com
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Ex_SQer
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RE: SQ Flight Reductions

Fri Mar 21, 2003 8:45 am

S_Air: We are splitting hairs over the same issue.

It is not uncommon for dominant carriers on any route to match each other's fares. For the most part this type of pricing is legal, market driven, and economically rational (even if the fares are high). A cartel - "official" or "unofficial" - usually implies illegal, non-market driven and economically irrational pricing, because the players involved collaborate to keep prices artificially high. There is a difference.

If SQ and AI's fares were really priced beyond the market, then people will either not fly (travel is almost always a discretionary purchase) or they would defect en masse to IC or fly indirect with MH or TG, but that hasn't happened.

The bottom line is that SQ and AI's fares may be high, but this is not cartel pricing in any recognizable way, shape, or form.
 
rupertvander82
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RE: SQ Flight Reductions

Fri Mar 21, 2003 8:46 am

They are reducing so many destinations?

This is rather insane. They are just overly obessed with profits!
 
Businessflyer
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RE: SQ Flight Reductions

Fri Mar 21, 2003 10:04 am

Ex-SQer....

Don't forget that in Singapore there is no general competition law. Therefore, a cartel involving one or more Singapore company would not technically be illegal.

Admittedly SQ does charge very high fares in and out of India, but this is a function of high demand between SG and India and relatively constrained demand. In particular, Singaporeans just will not fly Air India... so it remains a captive market. But you are right... I don't think this is a deliberate policy. It is the same around the world where there is limited competition between cities.
 
Ex_SQer
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RE: SQ Flight Reductions

Fri Mar 21, 2003 10:44 am

Businessflyer:

Ah, I forget about Singapore's laws on competition/antitrust. In any case, Indians themselves prefer to fly SQ for various reasons (perceived better service, class consciousness, etc). I remember when I was at SIN I had to deal with long waitlists for P/J, and people whining about having to sit with "poor people" (I kid you not) in Y.

So, with less SQ flights to KUL will you be less likely to mistake SQ B777s for MH A330s?  Smile/happy/getting dizzy


Rupertvander82:
I'm not saying that SIA isn't overreacting, but this situation is nothing short of a crisis. SIA no longer has a ridiculous cash buffer, and it makes sense to conserve cash rather than bleed red ink during the traditionally weak months of April/May. In any case, they are short of mechanics and 777 pilots, and aircraft utilization is very high at the moment. This should give them some operational breathing space.
 
9V-SVA
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RE: SQ Flight Reductions

Fri Mar 21, 2003 11:42 am

Not surprised. Tourist destinations in Europe such as Athens, Copenhagen and Rome are not suspended while Brussels is suspended? Rather wierd if you ask me as Brussels is served by B744s and the former three are done by B777 aircraft. Since they are short of B777 crew, first priority would be to suspend the leisure routes although they do earn money, no one from Asia would want to travel now due to the war and that stupid flu bug.

Rupertvander82, SIA is not that obsessed with profits, just that their reserves weren't the amount it used to be before 9-11. It also does have passenger safety at hand. What if an SIA B744 was forced to land in Iraq? Would you want that?

9V-SVA
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odie
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RE: SQ Flight Reductions

Fri Mar 21, 2003 11:48 am

MAS is also reducing its flight into Singapore, but all of its flight is going to be operated by the brand new A332s. MAS will fly 7 times a day using A332s where as SIA will fly 6 times a day using B772s (after July). However, there are no flights out from Singapore to Kuala Lumpur after 9 p.m. How are passengers from Australia/New Zealand/Asian cities going to connect to KUL when their flight arrives after 8:15 p.m. (45 minutes for the minimum transfer) and not to mention the long transfer for passengers en-route to cities with early morning departure e.g. to Seoul, Nagoya, Fukuoka, South Africa, Shanghai etc.

This might be off-topic, but MAS seems to be reducing a small fraction of their capacity. Only two flights will be canceled and that is only for the forthcoming week. Are they really doing that well?
 
Businessflyer
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RE: SQ Flight Reductions

Fri Mar 21, 2003 2:34 pm

Ex-SQer...

Maybe... but when you are tired on a Friday night, it is amazing how one airline pretty much starts to look like another Smile! Expecially when the comparison is MH vs SQ. However, not so sure about SQ against Air India! I think no matter how tired you are, you will always notice. Incidentally I remember that one of the Mumbai SQ flights is a component of the SG to Manchester route, which in part may explains why it is so difficult to get a seat.

Anyway, with respect to Singapore Airline's financial position, the latest financial figures I could see were for September 2002, but at that time the balance sheet looked very healthy. However, the airline is noted for limited financial disclosure, so who really knows how well they are currently doing.

Furthermore, amazed to see in today's papers, well in today's "Today", that MH has absolutely slashed airfares from Singapore to around the world. It is possible to fly economy class, Singapore to London or New York, via KL, for only S$750! Amazing...
 
Ex_SQer
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RE: SQ Flight Reductions

Fri Mar 21, 2003 2:41 pm

Limited financial disclosure is right on, BusinessFlyer. Every time I scan through the financial statements there will be at least one item that'll surprise me  Smile

The SIN-BOM-MAN flights will be suspended end of March. From then on the plan is to have daily 773s to BOM. Of course all that is subject to change.
 
rupertvander82
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RE: SQ Flight Reductions

Fri Mar 21, 2003 2:53 pm

I am just shocked that SIA will drop destinations like Chicago, Las Vegas, Madrid and Brussels so quickly, it seems rather insane to me!

But I had no idea that they had little cash reserves left!
 
Shortfinals
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RE: SQ Flight Reductions

Fri Mar 21, 2003 4:16 pm

Odie,

The problem you mention about not being able to connect to KUL after arriving from Australia always causes me grief. The solution is MH645 departing at 23.20, which doesn't help if you're on an SQ only ticket.
 
9V-SPK
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RE: SQ Flight Reductions

Fri Mar 21, 2003 4:26 pm

Aussie and Kiwi routes are always high-demand. Not suspending these routes are not really uncommon.

What makes me feel strange is that all suspensions are NOT taken immediate effect, but rather 1-2 weeks, when war could possibily be over (or not?). Also if we look carefully only Madrid, Brussels, Chicago, Las Vegas and Mauritius are stations that are suspended, while others are only the reduction of flights. Obvious reason for suspending flights to the 5 stations are low demand for those flights (Especially LAS and ORD as I heard load factors are not too good, not sure bout Madrid and Brussels but possibily the same).

Probably SQ has experience after 911 incident and knows what measures are the best to meet the objectives, who knows? SQ definetely has planned carefully of restructuring the routes after the launch of attack on IRAQ and this scheldue will probably be the only reductions they will announce unless war continues for quite a period of time.

Also for the time-being all flights will be resumed on 1st June 2003, which means the routes will eventually come back as everything goes well. Why operate routes during the war and tension when SQ reckons it won't do any good for herself? I reckon SQ's move might be quite conservative but SMART.

One more thing, examining the routes closely most of the destinations that have been reduced capacity have quite a number of flights, e.g Hong Kong, Kulua Lumpur, Taipe, SFO, NYC (JFK and EWR) etc whereas Hiroshima and Kaohsiung still operate 2 flights a week. So SQ is only reducing capacities and trying to pack those flights during those low-season rather than always flying not-even-half full planes.

Hope the war will end earlier however and everything goes back to normal.
Best Regards

 
SInGAPORE_AIR
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RE: SQ Flight Reductions

Fri Mar 21, 2003 5:12 pm

It should be noted that a lot of airlines have not cut capacity as much as Singapore Airlines have.

I concurr with 9V-SPK's reasoning.

Also, Singaporeair.com still shows flights that should be suspended. Hence, it can be concluded that they haven't updated their schedules online.
Anyone can fly, only the best Soar.
 
SInGAPORE_AIR
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RE: SQ Flight Reductions

Fri Mar 21, 2003 7:10 pm

Singapore Air Says Fuel Bill Will Rise Because Of War
SINGAPORE (Dow Jones)--Singapore Airlines Ltd. (P.SAL) said Thursday longer flight routes to Europe and the U.S. will lead to a higher fuel bill, but the carrier declined to quantify any costs from the war in Iraq.
"A larger fuel bill is inevitable with the alternative longer routings of flights due to the Mid-east conflict," the airline said in response to a query from Dow Jones Newswires.

The airline said Thursday it planned to fly alternative routes to Europe and the U.S. and also suspended up to 65 flights, or about 10% of its weekly schedule, because of the war in Iraq.

The airline has traditionally hedged up to 50% of its fuel needs. In the financial year ended March 31, 2002, a one U.S. cent per gallon rise in fuel cost lead to a S$19 million rise in cost, it said.
Anyone can fly, only the best Soar.
 
Flying Belgian
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RE: SQ Flight Reductions

Sat Mar 22, 2003 12:10 am

I was very shocked when I read that on another website !!! I thought they were laughing !
I'm very sad to see that BRU is dropped. Our only 744 pax  Sad  Sad  Sad

Isn't it too early to take such measures ?? The war seems to be quick so far.

I hope EJazz can bring some precisions.


FB.
Life is great at 41.000 feet...
 
Airbus Lover
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RE: SQ Flight Reductions

Sat Mar 22, 2003 1:21 am

Was at KUL today and according to the flight info TV, MH flight to PEK was cancelled and the flight to ICN was too. Strange.
 
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apuneger
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RE: SQ Flight Reductions

Sat Mar 22, 2003 1:29 am

Better start taking a lot of SQ pics I guess...  Sad  Sad  Sad

Ivan
Ivan Coninx - Brussels Aviation Photography
 
hkg82
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RE: SQ Flight Reductions

Sat Mar 22, 2003 4:02 am

I did not expect SQ to cut THAT many flights, but they are necessary in order to maintain profitability (SQ relies heavily on fifth freedom traffic) & maximize shareholder dividends in these exceptionally difficult times in the aviation industry. At least SIA is not resorting to laying off staff, as other airlines have done & will do in the future.

I thought CX would be among the first airlines to announce flight reductions & suspensions but so far they haven’t. Before the war started, CX said they would immediately suspend flights to Dubai, Riyadh & Bahrain if the US strikes Iraq but in a recent press release they stated they would continue to fly to these destinations for the time being.

Maybe in the next few days (still too early, the war could be over in a week or two and that wouldn't affect the travel industry much), or if the war is a prolonged affair?

Hkg82.
 
AN882
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RE: SQ Flight Reductions

Mon Mar 24, 2003 7:43 pm

I was booked to fly BNE SIN MRU early may. SQ are accommodating us on MK from SIN to MRU so all is not lost. The flight times are actually better than we had booked with SQ (Less time in SIN). Will have to wait and see if SQ will give a us freebie in Singapore on the way home and pay for some extra accommodation in Mauritius. Not likely I’m sure. It really surprised me that they would just drop so many routes overnight (so it seems). Mauritius was only served 2 times a week, and I would have thought the enormous feeder traffic SQ has through Singapore that they could at least sustain 2 weekly's. Anyway an A340 will be a nice change to 777's.

AN882