RMenon
Topic Author
Posts: 113
Joined: Tue Jun 12, 2001 10:51 pm

Why Does SIA Want AN?

Fri Jun 15, 2001 2:08 pm

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?
 
Al
Posts: 584
Joined: Tue Jun 08, 1999 10:28 pm

RE: Why Does SIA Want AN?

Sat Jun 16, 2001 1:51 am

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.