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Silk Air to be merged into Singapore Airlines
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Yep - also some routes will be transferred between the airlines (which means some regional SQ routes will be handed over to SilkAir)
https://www.ausbt.com.au/silkair-ado...business-class
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Interesting. It makes sense to rationalise the number of brands and products within the group, and have a single full service brand leveraging the equity of the master brand. Similar to what CX has done with Cathay Dragon.
It'll be cute to see SQ-branded narrowbodies - though I wonder if the current SilkAir entity will take the form of a 'Singapore Airlines Regional' sub-brand.
Plus this is great news for Star Alliance partner loyalty program members as SilkAir sitting outside *A and therefore not eligible for earn &burn or status benefits (despite the prevalence of SQ*/MI itineraries) for partner programs has long been a pain point.All opinions shared are my own, and are not necessarily those of my employer or any other organisation of which I'm affiliated to.
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Originally posted by flyinghigher View PostSuddenly the possibility for future B797s seems quite likely with this merger.
Also, Wouldn't it be a waste of money for the new cabin products on the B737 Max 8 be such a waste on those new planes this year?
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Historically, according to wikipedia, Singapore Airlines used to have the 737 and that was in the old old livery in the early 1970's which were the 737-100.
Although the article states years away, eventually it will be cool to see SQ 737's plus KrisWorld or at least some PTVs even on regional narrowbody planes.
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Originally posted by SQ_326 View PostThis move is more financially rather than brand driven. Post-merger, MI’s revenues will be above the line and given that it’s “more” profitable than SQ, it will dress the book nicer.
1. In the most recent Financial Year, MI's operating margin was 4.2%, SQ Parent's 6.0%.
2. SQ revenues are 11.5x larger than MI's. Even if MI's profit margins are better (they were in some years in the past), the needle will hardly be moved.
3. The company reports profits on a consolidated basis since MI is a 100% owned subsidiary and that is what the market focuses on (the numbers in point 1 and 2 above are taken from footnotes deep inside the financial statement). So financial results will be same with or without merger.
There may be some cost benefits from maintaining a single brand (just one brand to promote, etc), but probably will be balanced by higher cost of providing the SQ service (better seats, food, etc) on the MI network.
All in all, this is highly unlikely to be a financially motivated move. More of providing operating flexibility (e.g. with one AOC, they have the flexibility of upsizing/downsizing aircraft to destinations based on demand).
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Originally posted by SQfanatic View PostHistorically, according to wikipedia, Singapore Airlines used to have the 737 and that was in the old old livery in the early 1970's which were the 737-100.
Although the article states years away, eventually it will be cool to see SQ 737's plus KrisWorld or at least some PTVs even on regional narrowbody planes.visit my blog
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