SingaporeFA
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Will SQ Launch Its Own Budget Airline?

Fri Nov 21, 2003 5:49 am

So the feasibility study by SQ to whether it will launch a low cost carrier of its own will be decided at years end.So who here thinks that it will....or wont?
 
Ex_SQer
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Joined: Wed Apr 24, 2002 5:43 am

RE: Will SQ Launch Its Own Budget Airline?

Fri Nov 21, 2003 5:57 am

Bad idea. Cost base ex-Changi is way too high to compete profitably. Probably better to downsize capacity and let the budget carriers take the lowest yield customers.
 
SInGAPORE_AIR
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RE: Will SQ Launch Its Own Budget Airline?

Fri Nov 21, 2003 7:10 am

Yes, Singapore Airlines Limited will be launching its own budget airline - more than likely.

The wonderful Chew Choon Seng - CEO of the Airline said that the Group could either launch a new airline from scratch or do nothing. There is little rumour of it doing the latter.

----
Singapore Airlines completes study of proposed budget carrier
By Katherine Tay, Channel NewsAsia

Singapore Airlines has completed the study on its proposed budget carrier. Vice President of Public Affairs Rick Clements told Channel NewsAsia this in a recent interview.

SIA will decide on the investment by year-end.

One enthusiast for SIA to go into no-frills air service would be DBS Vickers Securities, which notes in its latest research report that a budget carrier's margins are better than even SIA's premium service.

Like it or not, Singapore Airlines will have to put up a tough fight with regional budget carriers.

Malaysia's Air Asia and Indonesia's Lion Air are already seeing brisk ticket sales and both want to quickly expand their network of routes.

On SIA's home turf, ValuAir is set to fly next year.

DBS Vickers Securities thinks SIA should invest in a budget carrier as the no-frills pie will grow.

But SIA is keeping its card close to its chest till next month.

What is clear, though, is that it will need more staff, even without a budget carrier, now that flight capacity is almost back to pre-Sars level.

But it will not be hiring in big numbers.

Mr Clements said: "We've still got a recruitment freeze and that will not be lifted in the near term but we are recruiting selectively and we are looking ahead to staffing requirements and crew requirements, especially in the early months of next year."

SIA says it will continue to hire foreign staff who have the necessary skills and can add value to the organisation.

ChannelNewsAsia
Anyone can fly, only the best Soar.
 
SingaporeFA
Topic Author
Posts: 108
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RE: Will SQ Launch Its Own Budget Airline?

Fri Nov 21, 2003 7:22 am

eerr..i was actually asking about your opinion whether they should or shouldnt...and not a news report of which i have already seen.
 
mandala499
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RE: Will SQ Launch Its Own Budget Airline?

Fri Nov 21, 2003 8:46 am

It will...
and it will be filled with more grumpier staff hating but not leaving their control obsessive management Big grin

Mandala499
When losing situational awareness, pray Cumulus Granitus isn't nearby !
 
SingaporeFA
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RE: Will SQ Launch Its Own Budget Airline?

Fri Nov 21, 2003 7:50 pm

Oh..then i should ask for a transfer....
 
Ryanair!!!
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RE: Will SQ Launch Its Own Budget Airline?

Sat Nov 22, 2003 12:43 am

The wonderful Chew Choon Seng - CEO of the Airline ...

Good God, give your enthusiatic connotations a rest will you? What is so wonderful about him? He has just taken over from "Baldy" and for all we know he might just be another Baldy crony! Simply sickening...

Anyway, I hope SQ won't launch their own budget airline. I can just imagine the SQ culture slowly creeping into the LCC formula and ending up with many mixed results and leading to many internal squabbles. Just look at how divided the staff is over at Silkair and SQ. Amazingly entire different benefits await for employees of the 2 airlines despite being owned by the parent SIA.

Plus the branding of SQ is too strong to ever go LCC I feel. And I second Ex_SQer on the handling fees at Changi. Too expensive even for Air Asia and they have since decided to operate out of Seletar hopefully by next year after CAAS extends the runway to accomodate the 737. So maybe SQ's proposed LCC should operate out of Seletar too if and when they decide to go ahead with the plans?
Welcome to my starry one world alliance, a team in the sky!
 
Ryanair!!!
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RE: Will SQ Launch Its Own Budget Airline?

Sat Nov 22, 2003 12:47 am

SingaporeFA, transfer? Where to? Valuair? No stewards... Silkair? No stewards also... QANTAS? Hmmm...  Big grin
Welcome to my starry one world alliance, a team in the sky!
 
asianguy767
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RE: Will SQ Launch Its Own Budget Airline?

Sat Nov 22, 2003 3:04 am

SQ should launch not a LCC but maybe a lower fare yet full service all economy regional airline serving its thinner routes such as MLE, SUB, DAC, CCU or routes that could do with more frequency over capacity, namely PEN & KUL. And in its forward cabin instead of business class, it can have its executive economy? I think a B737-900 would be an ideal aircraft for this...Just an idea...
 
SingaporeFA
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RE: Will SQ Launch Its Own Budget Airline?

Sat Nov 22, 2003 4:49 am

To your fav airline..ryanair!!!
 
Ryanair!!!
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RE: Will SQ Launch Its Own Budget Airline?

Sat Nov 22, 2003 3:12 pm

I think a B737-900 would be an ideal aircraft for this...Just an idea...

SQ would never go back to a narrow body after their 757's stint with the airline. Apparently customer surveys showed that they preferred to fly on a widebody!
Welcome to my starry one world alliance, a team in the sky!
 
Ex_SQer
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RE: Will SQ Launch Its Own Budget Airline?

Sat Nov 22, 2003 4:53 pm

SQ should launch not a LCC but maybe a lower fare yet full service all economy regional airline serving its thinner routes such as MLE, SUB, DAC, CCU or routes that could do with more frequency over capacity,

That's what SilkAir is for, except SQ keeps hanging on to routes that should really go to MI....
 
asianguy767
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RE: Will SQ Launch Its Own Budget Airline?

Sat Nov 22, 2003 11:33 pm

Well, if the routes are an SQ monopoly then the customers dont have much choice do they? And even if there is competition, either they use narrow bodies too or the airline is a world of difference from SQ..for example on routes to SGN, SUB, PEN, MLE, CCU, DAC.

Silkair was in concept supposed to do that but as it got a life and identity of its own, things became differrent and the challenge facing SQ now is way different than when MI first took to the skies...
 
SingaporeFA
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RE: Will SQ Launch Its Own Budget Airline?

Sun Nov 23, 2003 12:24 am

I think they should convert MI into a low cost carrier..and transfer some of its routes back to SQ like those to China and India as those are lucrative routes.And SQ should transfer some of it routes to MI..those suitable for low fares..like KL,PEN,BKK etc.
 
dynkrisolo
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RE: Will SQ Launch Its Own Budget Airline?

Sun Nov 23, 2003 9:39 am

I'm surprised none of the SQ experts in this group has picked up a report on AirAsia's confidence in getting landing rights in Singapore. In the report, an AirAsia spokesperson confirmed the airline is in discussion with Singapore's Temasek Holdings for a possible partnership. If I'm not mistaken, Temasek Holdings is the biggest shareholder of SQ. How can all the SQ experts here miss such an important development?  Wink/being sarcastic
 
mandala499
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RE: Will SQ Launch Its Own Budget Airline?

Mon Nov 24, 2003 1:21 am

Oh..then i should ask for a transfer....
SingaporeFA, after reading your previous comment on another thread, that line made me laugh somehow !

Mandala499
When losing situational awareness, pray Cumulus Granitus isn't nearby !