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Old 18th May 2018, 07:44 AM   #1
reddevil0728
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Default Silk Air to be merged into Singapore Airlines

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Old 18th May 2018, 07:46 AM   #2
djsflynn
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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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Old 18th May 2018, 07:47 AM   #3
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Originally Posted by reddevil0728 View Post
I actually thought this was a joke when i glanced at it.. Well hopefully now we'll have more equal service standards across the 2 (or 1 airline?)
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Old 18th May 2018, 07:58 AM   #4
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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.
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Old 18th May 2018, 08:06 AM   #5
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Wow! SQ liveried 737s in the future? Equipped with KrisWorld...!
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Old 18th May 2018, 08:07 AM   #6
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Also reported in the Straits Times

https://www.straitstimes.com/busines...agship-carrier
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Old 18th May 2018, 08:11 AM   #7
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Suddenly 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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Old 18th May 2018, 09:11 AM   #8
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Quote:
Originally Posted by flyinghigher View Post
Suddenly 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?
The newest aircraft will be retrofit last for sure. Those can live with the MI cabins for a while.
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Old 18th May 2018, 10:42 AM   #9
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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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Old 18th May 2018, 10:46 AM   #10
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as someone who has experienced flying on sia narrow-bodies back in the day, I'm looking forward to see how they will carry on the inflight service this time around
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Old 18th May 2018, 11:11 AM   #11
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This 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.
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Old 18th May 2018, 11:13 AM   #12
Avenger777
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Wait so does that mean MI girls will now become SQ girls wearing the kebaya too?
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Old 18th May 2018, 11:42 AM   #13
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Quote:
Originally Posted by SQ_326 View Post
This 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.
This is incorrect for the following reasons::

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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Old 18th May 2018, 12:22 PM   #14
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Quote:
Originally Posted by SQfanatic View Post
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.
is it 737 or 727? I remember I took SQ B727 in 80s
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Old 18th May 2018, 12:23 PM   #15
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Quote:
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Wait so does that mean MI girls will now become SQ girls wearing the kebaya too?
probably not. i think it is more like Cathay Dragon concept.
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