jetlag73
Topic Author
Posts: 74
Joined: Wed Sep 28, 2011 8:20 am

More Turbulences Ahead. SQ Profits Down 50%

Mon Feb 06, 2012 8:23 am

Seems the industry still has major turbulences ahead.
We've seen many small airlines fold (Spanair, Malev, etc...).
Now even the industry leaders are hit.

Link below :

http://www.balidiscovery.com/messages/message.asp?Id=7857

"Unfortunately, Singapore Airline's performance may portend a dismal outlook for international travel generally. The Singapore carrier is generally credited as one of the world’s best-managed carriers with an unparalleled worldwide network of routes. Because of this, SIA’s performance can arguably taken an indicative of the overall health of the global airline industry as a whole."
 
senliture
Posts: 404
Joined: Sun May 14, 2000 5:28 pm

RE: More Turbulences Ahead. SQ Profits Down 50%

Mon Feb 06, 2012 12:43 pm

More like they should spend some time and effort to fix their website. I tried booking a few times since they have 'upgraded' the website last year, it's a bit of a lottery really. Occassionally it will say technical error, making you starting all over again. There were a few times I have to give up and book with their competitors.

It looks like the top management at SQ still not recognising the problem.
 
IndianicWorld
Posts: 2806
Joined: Mon Jun 04, 2001 11:32 am

RE: More Turbulences Ahead. SQ Profits Down 50%

Mon Feb 06, 2012 1:02 pm

Very big fall. The SQ management have let TR/TT damage their brand and Scoot may not be any better.

Best managed airline? Questionable really, but in an industry full of strange decision making, they can sometimes look good.
 
SurfandSnow
Posts: 1069
Joined: Sun Feb 01, 2009 7:09 am

RE: More Turbulences Ahead. SQ Profits Down 50%

Mon Feb 06, 2012 1:15 pm

I wouldn't equate SQ's performance with the health of the global airline industry overall. This is no doubt a result of Southeast Asian LCC competitors poaching traffic in key markets throughout East Asia and Australia. Out of SIN there's JetStar, which has started New Zealand and apparently may do Europe in the future. In the region there's also Air Asia X threatening long haul yields and even Cebu Pacific is going to start long haul. Finally, the rise of the Gulf carriers has come at the expense of not just the European airlines but also the Southeast Asian carriers that heavily rely on the Kangaroo Route traffic. SQ is finally really starting to feel the LCC pinch that American, European, and Australian carriers have had to contend with for years now. They will face the same challenges that AC, QF, UA, AA, DL, BA, SK, AF, etc. have faced....
Flying in the middle seat of coach is much better than not flying at all!
 
Pe@rson
Posts: 16015
Joined: Sat Jan 13, 2001 6:29 pm

RE: More Turbulences Ahead. SQ Profits Down 50%

Mon Feb 06, 2012 1:18 pm

Quoting jetlag73 (Thread starter):
Now even the industry leaders are hit.

FR isn't hit: it has increased its anticipated full-year profit to €480m/$630m.

http://www.bbc.co.uk/news/business-16784541
"Everyone writing for the Telegraph knows that the way to grab eyeballs is with Ryanair and/or sex."
 
LondonCity
Posts: 987
Joined: Wed Nov 19, 2008 12:57 pm

RE: More Turbulences Ahead. SQ Profits Down 50%

Mon Feb 06, 2012 1:41 pm

Quoting SurfandSnow (Reply 3):
Finally, the rise of the Gulf carriers has come at the expense of not just the European airlines but also the Southeast Asian carriers that heavily rely on the Kangaroo Route traffic.

It's not just the Kangaroo Route traffic. The Gulf airlines are muscling into the Europe-SE Asia market in a big way and poaching traffic from SIA, TG, MAS etc. For example, in 2011 Etihad's most popular route was AUH-BKK over which it flew 500,000 pax. Many of those pax would have transitted AUH from points in Europe.
 
jetlag73
Topic Author
Posts: 74
Joined: Wed Sep 28, 2011 8:20 am

RE: More Turbulences Ahead. SQ Profits Down 50%

Mon Feb 06, 2012 2:14 pm

Quoting Senliture (Reply 1):
It looks like the top management at SQ still not recognising the problem.

Management has been "assessing" the problem with a special team since mid 2011, but until now, still the same mess.
Old website was perfect, why change ???

I have to call the booking center in SIN every time I need to make a booking, and they cannot give the same rate as my local station (DPS). So then DPS station contacts me and proceeds to payment. Not practical really.
Same for redemption, website f***s up, so I call, and I get the 15% discount on miles, just like on internet.
Still, what a mess...

Quoting LondonCity (Reply 5):
The Gulf airlines are muscling into the Europe-SE Asia market in a big way and poaching traffic from SIA, TG, MAS etc.

Well, in the end, it's all good for us consumers. Hopefully SQ management will start to feel the heat, and change their attitude towards its customer base. SQ charges more, but service is not "much ahead of competition" anymore, and KF/PPS is not what it used to be (like many others, granted).