SQ's lost mojo - overdue for a good rant!

[9V-SIA]

Thanks milehighj.

Pretty much sums up SQs problems.

Going forward what are the solutions?

I see trying to win back members into loyalty program

Higher density seating, which ties in to lower ticket prices. Market has shown lower price trumps product

More substitution of SQ routes (short haul) with MI.

[milehighj]

The bottom line: Singapore Air, which faces new competition from Middle East carriers, has seen its passenger count fall by 12 percent since 2008.

- BloombergBusinessweek

So let me ask this very simple, big picture question:

- How much premium passenger business has been lost by driving away all those PPS customers?

I am fairly certain that the PPS population has been reduced by far more than 12%, and those disenfranchised customers are now giving more business and revenue to other carriers. Let's call it "decremental revenue", shall we?

Or should someone in SQ pick up the phone and ask that raving moron Chew Choon Seng for the answer??

[Nick C]

raving moron Chew Choon Seng

Spot on!

[HUGE AL]

So let me ask this very simple, big picture question:

- How much premium passenger business has been lost by driving away all those PPS customers?

I am fairly certain that the PPS population has been reduced by far more than 12%, and those disenfranchised customers are now giving more business and revenue to other carriers. Let's call it "decremental revenue", shall we?

Or should someone in SQ pick up the phone and ask that raving moron Chew Choon Seng for the answer??

I was going to say something similar. Culling the PPS ranks/devaluing their FFP seriously bites the hands that feed them. THIS is what the article should have included.

[CarbonMan]

Yes, there is a detachment of senior management from their customers, I fear. They probably fly F when on duty-travel and when the boss is on the flight, the FAs would most probably turn on the extra Mojo (sorry, I don't mean any disrespect to FAs but this happens everywhere). So they don't feel and see the drop in standards as much as we FFs do. It may be true that they may not have cut overall costs but certainly they have cut the quality of many of the amenities that were previously provided (showers, food, toileteries, etc) in order to serve more with the same expenditure.

On the other hand, their prices keep going up - I just checked that the cheapest SIN-IAH-SIN on J in June is nearly S$12.5K while UA is 7.8K and QR is $8K. UA's flights are about the same duration as SQ +/- 2hrs. Is the premium worth it? Very hard to justify in times like this.

The CEO has said it, the focus for the coming years is in the budget sector. Are they re-strategizing SQ beyond saying that there are newer (better?) products in the far off horizon or have they thrown their hands in the air?

[9V-SIA]

On the other hand, their prices keep going up - I just checked that the cheapest SIN-IAH-SIN on J in June is nearly S$12.5K while UA is 7.8K and QR is $8K. UA's flights are about the same duration as SQ +/- 2hrs. Is the premium worth it? Very hard to justify in times like this.

I think this goes back to the fact that SQ planes have fewer seats than the competition.

CCS said as much when they introduced New Business Class to replace Spacebeds. Fewer seats, higher price.

You have to remember the decision to go upmarket was made before GFC when companies were more generous with their travel budgets.

Well its 2012 now. The sooner they recognize the new realities the better.

Let's for one moment imagine SQ service and product NOW were like the good old days

Would travelers choose it over UA or QR to SIN-IAH? Bearing in mind the price difference?

[milehighj]

You have to remember the decision to go upmarket was made before GFC when companies were more generous with their travel budgets.

Well its 2012 now. The sooner they recognize the new realities the better.

Let's for one moment imagine SQ service and product NOW were like the good old days

The global economy goes in cycles, and while things are not rosy now, we should all hope that this will not always be the case. No-one could predict the GFC, but corporate leaders should be expected to protect the firm in all scenarios.

By all means, aim go for the premium product and pricing, but why concurrently kill the loyalty that could have made a difference today? Pure idiotic arrogance, plain and simple - and I will rant on about it here (and also to my friends in Singapore Inc., Temasek, et. al.) probably till the last A380 flight.

CCS bet the farm on charging the Premium Customer more while giving/rewarding/respecting them less. He IS a moron, and deserves to be called out as one for screwing up a national asset.

[milehighj]

I just wanted to make the observation that Singapore Airlines, a company close to my heart in many ways, has quite frankly lost it's mojo.

Love them or hate them, EK and their Middle Eastern brethren are upping the stakes with new aircraft, new routes, and new customers. They may certainly fail, but at least they have a vision and a plan.

What does SQ have? SQ is now being run by a bunch of cost-conscious, risk-adverse Singaporean technocrats to whom Vision and Strategy were subjects they once scored A's in their Ivy League MBA classrooms.

This once-iconic industry leader has acquired a core of uninspired mediocrity. The short list over the past few years:

- Living off the Singapore Girl and her sarong kebaya;

- Destroying the PPS loyalty base in the name of cost savings;

- Comfortably milking the cash-cow routes - China, India, Europe - and minimal route expansion or aggressive fleet buys;

- Totally incoherent, fragmented and poorly executed stabs at perceived market segments - SQ, SilkAir, Tiger(!), Scooooot(!!);

- Total hubris, followed by indecision and quiet dilution of the "Class Beyond First";

- And finally, of course, there's that website - merely the public face and major sales channel of a 21st century enterprise. What happened? Amateurish, incompetent execution that, in a real company with real accountability, would have gotten the CEO and/or every senior manager directly responsible tossed out on the street.

I'm not an industry expert, and no doubt I've got some bits wrong. But I do run a business and it's clear as daylight that this company is totally lacking in Leadership, Accountability, Ideas, and even a basic clue about the Future!

I hope, with genuine sincerity, that the powers-that-be in Singapore Inc. and Temasek Holdings wake up to this fast and find this company proper leadership before it's too late.

Six months since I first posted this. They haven't even sorted out the website!!!!!!

[LionCity]

Latest postings in the ST in response to Allen Tan.

One is by http://www.straitstimes.com/STForum/...ry_802916.html

This one seems to have not read Allen's earlier letter properly when the focus was mostly premium classes and he was spending his time focusing on comparison to budget airlines. I think he is missing the points that Allen was trying to convey.

[benlee]

I will be very tempted to switch to CX if they introduce the new business class seats for JKT <> HK route.

[UMD]

I will be very tempted to switch to CX if they introduce the new business class seats for JKT <> HK route.

Give GA a try! They definitely have a much better product than CX on this route. They have also started to individually plate the premium class food for CGK - HKG - CGK sector since April 5th, 2012.

[UMD]

Latest postings in the ST in response to Allen Tan.

One is by http://www.straitstimes.com/STForum/...ry_802916.html

This one seems to have not read Allen's earlier letter properly when the focus was mostly premium classes and he was spending his time focusing on comparison to budget airlines. I think he is missing the points that Allen was trying to convey.

I agree with you. He is probably someone who works for SQ who keeps missing the point about what the premium and the SQ's loyal passengers want.

[9V-SIA]

I have to say that I feel very loved by SQ since hitting TPP

[MAN Flyer]

I have to say that I feel very loved by SQ since hitting TPP

Really?. Have I missed something ?.

[LionCity]

I agree with you. He is probably someone who works for SQ who keeps missing the point about what the premium and the SQ's loyal passengers want.

He has his own brand consultancy. See http://www.jorgdietzel.com/index.php?/about/brand-bio/. Claimed that American Airlines (Germany) is his customer but not SQ. He did talk about SQ and CX on their "new seats" see link: http://www.jorgdietzel.com/index.php?/news/. Did not really understand his posting....just wondering if he is trying to rope in SQ as his client too?

I am not too impressed by his reasonings and certainly not going to use his services for my products.