Big drop in SIA load (beg. March 09)

[ycp81]

DESPITE shedding flights and cutting capacity, Singapore Airlines is still having trouble filling up its planes.

It carried just 1.28 million passengers in March, a 23 per cent drop compared to March 2008. It was the most drastic fall since the global credit cruch started in September last year.

SIA said on Wednesday that it filled 69.4 per cent of seats across its network last month. The figure for February was just slightly better at 69.7 per cent.

Taking passengers and cargo as a whole, the total amount of space filled was 62.6 per cent.

The airline said in a statement to the Singapore Exchange that the global economic downturn has weakened travel demand.

To cope with the crisis, SIA plans to cut capacity by 11 per cent over the next 12 months.

It will also take 17 aircraft out of service for at least a year, from its fleet of just over 100 planes.

With fewer flights and routes, the airline which is sitting on excess manpower, also plans to put staff on shorter work months.

The travel slump is causing the aviation industry much grief. Around the world, airlines are expected to lose US$4.7 billion this year.

Asia Pacific carriers could post combined losses of US$1.7 billion - the biggest of any region.

http://www.straitstimes.com/Breaking...ry_363973.html

[ycp81]

The figures are quite alarming when CX only reported a drop of 3% in passenger numbers and a load factor of 79.1%.

Cathay Pacific releases combined traffic figures for March 2009
14 April 2009


Cathay Pacific Airways today released combined Cathay Pacific and Dragonair traffic figures for March 2009 that show a drop in the number of passengers carried compared to the same month last year together with another sharp fall in cargo and mail tonnage.

In March, Cathay Pacific and Dragonair between them carried a total of 2,096,011 passengers – a fall of 3.2% compared to the same month in 2008 - while the load factor fell by 3.0 percentage points to 79.1%. Capacity for the month, measured in available seat kilometres (ASKs), dropped by 0.8%. For the year to date, the number of passengers carried is down by 2.7% while capacity has risen by 0.1%.

The two airlines carried a total of 129,628 tonnes of cargo and mail last month, down 13.7% on March 2008, while capacity, measured in available cargo/mail tonne kilometres, fell by 10.0%. The cargo and mail load factor fell by 0.3 percentage points to 67.9%. For the year to date, tonnage has fallen by 18.7% compared to a capacity drop of 14.1%

Cathay Pacific General Manager Revenue Management Tom Owen said: “The slump in our passenger business continued in March, with overall passenger numbers and load factor both showing a fall from last year's high base, which included the Easter holiday period. Leisure traffic held up relatively well in terms of volumes, particularly on long-haul routes, although customers are only willing to travel at the much lower fares available in a highly competitive marketplace. This, combined with the ongoing malaise of premium-cabin demand and adverse currency movements, continues to exert considerable downward pressure on yields."

Cathay Pacific General Manager Cargo Sales & Marketing Titus Diu said: “The sharp drop in tonnage compared to the previous year highlights the continued weakness of the global airfreight business, and the fierce competition in shrinking markets is putting tremendous pressure on our cargo yield. The market out of the Hong Kong continues to be hit by a fall in production in the key Pearl and Yangtze River Delta areas, though our business to and from the United States received a lift from the launch of a new service to Miami and Houston which is giving us greater access to the important South American markets."

[kt74]

The figures are quite alarming when CX only reported a drop of 3% in passenger numbers and a load factor of 79.1%.

It's not about how many, it's about how profitable

Not quite like-for-like periods, but you get the idea:
SQ operating profit Q3 Oct-Dec 08 S$357m & H1 Mar-Sep 08 S$495m
CX operating loss FY Jan-Dec 08 HK$7,500m pre-exceptionals

Anyone can fill seats with heavy discounting... You might not like it as a customer (although personally I prefer emptier aircraft!), but I know which business I'd rather be a shareholder of

[LukeGT]

Anyone can fill seats with heavy discounting... You might not like it as a customer (although personally I prefer emptier aircraft!), but I know which business I'd rather be a shareholder of

Yes but discounting also allows you to keep your customers. Losing a customer it's easier than retrieving him.

[TON_UK]

Last year I flew from LHR to BKK via SIN with Singapore Airline
This year have to swap to TG on A346 same price as Singapore airline but I do get miles on TG which SQ won't.....

The sad things are I do miss A380 and the service on Singapore airline........

[ycp81]

Last year I flew from LHR to BKK via SIN with Singapore Airline
This year have to swap to TG on A346 same price as Singapore airline but I do get miles on TG which SQ won't.....

The sad things are I do miss A380 and the service on Singapore airline........

I would alo be doing a trip on SIN-LHR in a couple of mths on TG A346 as TG offers me significantly lower fares than SQ (about $700 less for similar timings in Y class). I am a single traveller and thus would never be able to enjoy SQ's 2-to-fly offers out from SIN. My trip this sunday to TPE would also be on CX as CX is literally throwing away seats at super bargain prices, saving me almost $200 over SQ. Ironically, CX is also cheaper than Jetstar!

[SQADL333]

Off the topic a little I booked a Trip to Vietnam For Christmas flying with Singapore Airlines out of Adelaide as the fares were a lot cheaper than Thai And I get my Royal Orchid Plus Points.Even with the Overnight Stopover due to flights not connecting I am still a few hundred dollars in front taking into account with the TG flights having to get a cheap Virgin Blue Flight Return to Melbourne to leave the country.SQ is much cheaper than TG and if anyone out there is even considering Jetstar out of Australia or even Vietnam Airlines don't do it.

[flyguy]

SIA's economy load seems to be down to below 70% - and do believe its premium 1st n biz class loads are even below 40%.

[LionCity]

Yes but discounting also allows you to keep your customers. Losing a customer it's easier than retrieving him.

That is right. CX and EK offering pretty neat deals to North Asia, US and Europe.
My company is already trying out/looking at these alternatives. Some folks have already signed up their frequent flyer programs.

SQ needs to be on its toes in this market not to lose her loyal customer base.

[sqdazz]

offering miles on discount fares will keep me loyal, otherwise I am looking elsewhere, i.e. Qantas and Emirates

[LukeGT]

The attractiveness of bonus miles rather than a fare discount it's a personal argument.

It's pretty clear that the chance to get a better fare or a bonus miles compared to the standard is always attractive.

On the other side, the real question is: among a correct sample of people, how many people would remain loyal thank to a bonus miles, if the competitor offer a fare discount? Ie other words, do you prefer 10000 bonus miles for your trip or to spend 20 % less (and I said 20%...).
I think everyone has a own different personal feeling regarding that.

[SQDoubter]

hi all,

heard from a friend who flew C from Manchester to Singapore last week that the load was 4J & 7Y!!!! OMG

How is that even sustainable. I wonder how true it is though? has anyone seen Y this light before?

[EWR]

Maybe that's why they're mass emailing ads like this to subscribers...

Click here if you are unable to view this page


28 Apr 2009









Dear XXX,

With these great one to go all-inclusive fares, there's never been a better reason to fly with Singapore Airlines. En route, enjoy KrisWorld, your personal inflight entertainment system, and the inflight service even other airlines talk about. For more promotional fares, visit singaporeair.com

Warmest Regards,

YYY
Singapore Airlines Limited



*Fares quoted are on sale from now to 8 May 2009 and for travel between 6 May and 30 June 2009 (except Europe). Flights to Europe are valid for travel between 2 May and 30 June 2009. Fares quoted are not valid for travel between 8 and 9 May 2009. Other terms and conditions apply.





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[Kyo]

7 in Y sounds awfully, unbelievably low... I'm surprised.

Great crewax ratio though! MAN Flyer would be happy

[N_Architect]

CX and EK offering pretty neat deals to North Asia, US and Europe.

I would add QR as well (and if their prices are not so attractive ex-SIN, they are indeed ex-PVG for example).