Had a discussion with a friend today about Singapore AIrlines and one thing that popped into my mind was, I can't recall them launching any new cities lately (this excludes SilkAir obviously which has been launching new routes left and right).
Someone correct me if I am wrong, but I believe the last new station that Singapore Airlines added was GRU which is 3 years ago. I guess HND also could be counted as well but Tokyo isn't a "new" market for them; just another airport added to the NRT slots.
ATH is being brought back in June but this isn't a "new" route so to speak as they've had an on again and off again relationship with ATH for the past 15 years or so it seems.
Are they planning on launching anything new anytime soon? They just seem to be in a rut with opening up new markets and have instead focused on increasing capacity on existing routes. the big 3 in the middle east obviously haven't helped either. Have they reached a saturation point? Any SilkAir routes that could be "upgraded" to SQ?
Discuss...!
Moderators: jsumali2, richierich, ua900, PanAm_DC10, hOMSaR
RE: Singapore Airlines New Routes: When?
Not an expert but I would imagine if SQ is going to add some routes in the near they're likely to be Silkair routes that need additional capacity and have growing business traffic, since the growth is coming mostly from ASEAN, China and India.
For that, maybe some of the Indonesian cities are a likely candidate. Unlike the other ASEAN capitals where the economy is more heavily centred around the capital, Indonesia has many more market centres like Surabaya, Medan, Bandung and Palembang. All under 2-hours from SIN.
For new routes outside the region, I wonder how viable these cities are for SQ, by region..
Europe- Warsaw, Lisbon
Americas (with a stop)- Chicago, Miami, Philadelphia, Buenos Aires
Africa- Nigeria
For that, maybe some of the Indonesian cities are a likely candidate. Unlike the other ASEAN capitals where the economy is more heavily centred around the capital, Indonesia has many more market centres like Surabaya, Medan, Bandung and Palembang. All under 2-hours from SIN.
For new routes outside the region, I wonder how viable these cities are for SQ, by region..
Europe- Warsaw, Lisbon
Americas (with a stop)- Chicago, Miami, Philadelphia, Buenos Aires
Africa- Nigeria
RE: Singapore Airlines New Routes: When?
I would love seeing them come back to BRU. Maybe one day, when they run out of real airports to fly to...
RE: Singapore Airlines New Routes: When?
Read a while a ago that SK and SQ where in talks about SQ starting SIN-ARN. Wonder what happened with that...
RE: Singapore Airlines New Routes: When?
SIN-LAX with A359 would be my guess for next long haul route, but that's still quite far away 
RE: Singapore Airlines New Routes: When?
I would guess India serves a higher chance for SQ new route.. It's just hard for it to have proper 5th freedom routes to N.America nor suitable aircraft yet to do non-stop flight.
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- BestWestern
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RE: Singapore Airlines New Routes: When?
This company really needs to start focusing on one thing... not so many different, sub optimally performing businesses. With SQ's aligned airlines such as Silk, Tiger, Scoot doing so badly, I can Imagine the management time spent on tidying up these messes. Silk air load factor was only 66.7% in Oct-2013, representing a 7.6 point drop compared to 2012. In march - SilkAir’s systemwide passenger carriage was marginally lower year-on-year against capacity growth of 1.1%.
Passenger carriage lagged behind capacity growth in East Asia and Pacific region, while West Asia region experienced a year-on-year decline in passenger carriage.
http://centreforaviation.com/files/analysis/163592/Mar14.pdf
SQ's load factor to west asia was just 67% in March - so no space for new flights to India, etc...
Tiger air is a unmitigated financial disaster.
Scoot, nok scoot, etc are years from breaking even, never mind generating returns on investment.
Passenger carriage lagged behind capacity growth in East Asia and Pacific region, while West Asia region experienced a year-on-year decline in passenger carriage.
http://centreforaviation.com/files/analysis/163592/Mar14.pdf
SQ's load factor to west asia was just 67% in March - so no space for new flights to India, etc...
Tiger air is a unmitigated financial disaster.
Scoot, nok scoot, etc are years from breaking even, never mind generating returns on investment.
Greetings from Hong Kong.... a subsidiary of China Inc.
RE: Singapore Airlines New Routes: When?
| Quoting BestWestern (Reply 6): |
Aren't they also having a substantial investment in Virgin Australia and planning to get a ownership in Air India or Jet Airways? Or are they trying to build a little alliance on their own?
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- bunumuring
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RE: Singapore Airlines New Routes: When?
Can I suggest that with the release of Etihad's new first and business class offerings which are arguably market-leading and innovative, that SIngapore Airlines may need to focus more on refining it's previously market-leading and innovative products rather than launch new routes...
Cheers,
Bunumuring.
Cheers,
Bunumuring.
I just wanna live while I'm alive!
RE: Singapore Airlines New Routes: When?
| Quoting Bunumuring (Reply 8): |
I don't think that is going to happen since SQ just recently launched their newly refurbished first and business class seatings. In any case, SQ will wait how etihad and emirates are doing with their residence and apartment class doing, if the demand are there, I am sure SQ will follow. In the mean time, SQ should take a look and seriously consider making premium economy class.
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- TropicalSQ744
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RE: Singapore Airlines New Routes: When?
SQ should look at taking a small fleet of 789s from Scoot to do smaller European markets nonstop like MAN, BRU, DUB. Not sure how realistic this is given the gulf carriers but one can always dream..
DMK(TG773/772) PEN(SQ772/MH734) PER(QF333) PEK(CA763) HKT(MI320) HKG(SQ744) ICN (OZ333), CJU,TAE(OZ734) TPE(3K320) KUL(T
RE: Singapore Airlines New Routes: When?
I think this is the typical example of an airline reaching network saturation, at least for the long haul. Traffic growth make top destinations bigger but the smaller ones still remain quite small.
On the long haul, due to the distance and the size of the US market to SIN, I don't see new destinations in America. Maybe the routings will change (FRA-JFK?).
Opening secondary cities in Europe looks increasingly challenging with the ME3 & TK. Growth will remain on the big cities they already serve. When you are Indonesian and want to fly to Europe, you only want to fly to 3 or 4 cities in Europe anyway.
More and more regional routes out of SIN will need widebody operations. If it's not Scoot operating these routes it will be SQ. I would also see Tiger start to operate widebody aircraft.
On the long haul, due to the distance and the size of the US market to SIN, I don't see new destinations in America. Maybe the routings will change (FRA-JFK?).
Opening secondary cities in Europe looks increasingly challenging with the ME3 & TK. Growth will remain on the big cities they already serve. When you are Indonesian and want to fly to Europe, you only want to fly to 3 or 4 cities in Europe anyway.
More and more regional routes out of SIN will need widebody operations. If it's not Scoot operating these routes it will be SQ. I would also see Tiger start to operate widebody aircraft.
Never trust the obvious
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- BestWestern
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RE: Singapore Airlines New Routes: When?
Tiger will Go bankrupt. They won't be in a financial position to operate wide bodies.
With scoot yields really struggling they too will change their focus. SQ can't afford to be in every segment - from a financial and strategy perspective. Too much time spent fighting fires in Tiger and Scoot, and not enough time building the strengths of SQ.
With scoot yields really struggling they too will change their focus. SQ can't afford to be in every segment - from a financial and strategy perspective. Too much time spent fighting fires in Tiger and Scoot, and not enough time building the strengths of SQ.
Greetings from Hong Kong.... a subsidiary of China Inc.
RE: Singapore Airlines New Routes: When?
| Quoting robbie86 (Reply 3): Read a while a ago that SK and SQ where in talks about SQ starting SIN-ARN. Wonder what happened with that... |
It is about 2 years since that agreement was made. At the time, they were going to study the possibility of operating to ARN as well, but not much has been heard since then. SK have seemed to suggest that their cooperation is having good results, but SQ would want to tread carefully as opening an ARN flight might just result in taking business away from their own CPH flight.
http://www.singaporeair.com/jsp/cms/...UK/press_release_news/ne120112.jsp
The article does seem to suggest SQ were going to start flying to ARN, but the key phrase was, "depending on market conditions"
-CXfirst
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- AWACSooner
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RE: Singapore Airlines New Routes: When?
| Quoting BestWestern (Reply 12): Too much time spent fighting fires in Tiger and Scoot, and not enough time building the strengths of SQ. |
I think this statement answers the question posed in the original post. That, and the fact the ME3 are marginalizing their loads west of Asia...and the Americas are geographically too far out of range.
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- IndianicWorld
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RE: Singapore Airlines New Routes: When?
I tend to agree that the SQ network has likely reached saturation point, taking into consideration its competition and product position.
SQ has a premium branding, which has been its strength but their market leading position has become more eroded by the year, especially as the ME3 and other regional carriers expand and take their product to the next level.
There really are not that many viable opportunities that exist these days for SQ to take on, which is why it has tried to position it's TIger and Scoot brands into the fastest growing segment of the market (LCC). As much as that plan has struggled, it is likely their best chance for significant growth if they can get it to work.
It's best chance is to keep increasing frequencies on existing routes, building on its strength in markets it has a strong customer base. Even this is a challenge though, as shown lately by its capacity pullback into Australia, which is definately a key market for the airline. Other airlines are moving into their key markets and often have a cheaper cost base and a product that now is competitive.
SQ is a great airline, but it will need to hope that it can build on its strengths but exploit the main growth trends in the future. To do that though, it first needs to work out how to get its LCC strategy to be profitable and complementary to its main brand. Not easy.
SQ has a premium branding, which has been its strength but their market leading position has become more eroded by the year, especially as the ME3 and other regional carriers expand and take their product to the next level.
There really are not that many viable opportunities that exist these days for SQ to take on, which is why it has tried to position it's TIger and Scoot brands into the fastest growing segment of the market (LCC). As much as that plan has struggled, it is likely their best chance for significant growth if they can get it to work.
It's best chance is to keep increasing frequencies on existing routes, building on its strength in markets it has a strong customer base. Even this is a challenge though, as shown lately by its capacity pullback into Australia, which is definately a key market for the airline. Other airlines are moving into their key markets and often have a cheaper cost base and a product that now is competitive.
SQ is a great airline, but it will need to hope that it can build on its strengths but exploit the main growth trends in the future. To do that though, it first needs to work out how to get its LCC strategy to be profitable and complementary to its main brand. Not easy.
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- airtropolis
- Posts: 148
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RE: Singapore Airlines New Routes: When?
Seattle would be on my wish list. While it is an ultra long haul flight distances are comparable to say HKG-JFK which CX seems to pull off quite comfortably with current generation aircraft. SQ's A350s should be able to do SIN-SEA nonstop. In SEA they can always code share with AS who seems open to working with various airlines and in view of their current relations with DL would probably be open to code share with SQ. This would open up various new city pairs for SQ such as SIN - San Jose/Boise etc which will be too thin to be served by SQ but code share with say AS may work with a non stop to SIN. I have been to SEA and it certainly seems pleasant enough to transit through.
Closer to home I reckon they may consider Phuket. Silkair will soon have 5 flights a day and further expansion on the route is limited for MI which is surprisingly successful on the route despite LCC competition, due to capacity constraints at HKT. SQ could easily put in a wide body on this route during peak times to increase capacity.
Closer to home I reckon they may consider Phuket. Silkair will soon have 5 flights a day and further expansion on the route is limited for MI which is surprisingly successful on the route despite LCC competition, due to capacity constraints at HKT. SQ could easily put in a wide body on this route during peak times to increase capacity.
RE: Singapore Airlines New Routes: When?
| Quoting BestWestern (Reply 6): This company really needs to start focusing on one thing... not so many different, sub optimally performing businesses. With SQ's aligned airlines such as Silk, Tiger, Scoot doing so badly, I can Imagine the management time spent on tidying up these messes. Silk air load factor was only 66.7% in Oct-2013, representing a 7.6 point drop compared to 2012. In march - SilkAir’s systemwide passenger carriage was marginally lower year-on-year against capacity growth of 1.1% |
But you realize Silk Air is more profitable margins than SQ mainline right? Per SIA last annual report, MI was the best in the group.
With bulk of global air traffic growth centered in Asia Pacific basin, Silk is well positioned to grow for SIA Group.
Future is not so much long hauls, but intra regional flying as economies grow and consumer societies blossom in region.
| Quoting Aither (Reply 11): Opening secondary cities in Europe looks increasingly challenging with the ME3 & TK. Growth will remain on the big cities they already serve. When you are Indonesian and want to fly to Europe, you only want to fly to 3 or 4 cities in Europe anyway. |
Remember SQ just recently signed agreement with TK which will give SQ access to 26 markets via IST. SQ also result boost its IST frequencies at same time.
mercure f-wtcc
RE: Singapore Airlines New Routes: When?
The elephant in the room no one wants to discuss...
Their hey day has passed. They were the world's greatest airline in the late 90s/early 2000s.
Either lack of leadership, changing demographics, or a change in business have let growth in this department be taken over by Emirates.
Times goes by, things change.
Their hey day has passed. They were the world's greatest airline in the late 90s/early 2000s.
Either lack of leadership, changing demographics, or a change in business have let growth in this department be taken over by Emirates.
Times goes by, things change.
RE: Singapore Airlines New Routes: When?
The A350-900 may allow SQ to do things they can't with 777.
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