SQ and MI to merge (partially)

[CarbonMan]

Singapore Airlines (SIA) and its regional arm, SilkAir, have merged part of their finance operations, as part of an ongoing transformation to stave off competition in the industry.

This will likely pave the way for further consolidation of more of both carriers' functions, say analysts, amid industry rumours that a full merger between the two may even be on the cards in the longer term.

Spokesman Nicholas Ionides told The Straits Times that the merging of finance functions is part of an ongoing programme to identify synergies across the SIA Group.

http://www.straitstimes.com/singapor...mid-challenges

Few on details what this really mean. Will Silkair still fly in the near future? Will MI hardware be upgraded to meet SQ standards? Or is this just trying to get rid of one finance department to cut costs?

[r123]

http://www.straitstimes.com/singapor...mid-challenges

Few on details what this really mean. Will Silkair still fly in the near future? Will MI hardware be upgraded to meet SQ standards? Or is this just trying to get rid of one finance department to cut costs?

I guess that the strategy there is a bit similar to Cathay Pacific and Dragonair (now Cathay Dragon) where the operations merge but the products remain different.

MI is a regional airline of which the fleet consists of only short-medium aircrafts and SQ only has long haul aircrafts. With Scott and Tiger, Silk struggles and needs to proof its product as superior to low-cost while at the same time remaining a regional carrier.

The article mentions one person complaining of paying SQ but getting MI product; it doesn't make sense since Silkair destinations are mostly different from SQ ones. However, Cathay Pacific and Dragonair are sometimes having such practices.

Passenger wise, I don't think that it is going to change anything since Silkair was always part of SQ (reservations system, call centre and so on) but the major issue is that MI has not been integrated within the Star Alliance network while Air China included its subsidiaries (Shenzhen Airlines...) have been part of the network.

What we might see is MI welcoming a few long-haul aircrafts but that is just speculation. But MI not existing anymore doesn't look feasible unless all their aircrafts become long-haul and SQ product compliant.

I think that in SQ's mind, SQ - as a premium airline - needs to fly to premium destinations while MI is here to go to secondary or tertiary cities.

Overall speaking, I think that the main aim of this is for Silkair to distinguish itself as a premium airline and not be overtaken by other low cost carriers.

[pokfur]

The article mentions one person complaining of paying SQ but getting MI product; it doesn't make sense since Silkair destinations are mostly different from SQ ones.

It does, as many of SQ's passengers are connecting passengers and would've bought a through ticket on SQ. The MI portion would've been sold as a codeshare, giving passengers a surprise when they turn up at the gate or have their Star Alliance benefits taken away for that flight. Nowadays, we also see some destinations being served by both SQ and MI, such as DPS, HAN and CMB. In those cases, the prices most of the time are the same for both airlines.

Overall speaking, I think that the main aim of this is for Silkair to distinguish itself as a premium airline and not be overtaken by other low cost carriers.

When I think of Silkair, I already do not think of a premium airline, at least in my mind not as premium as SQ. The decision not to put individual IFE screens on the 737 fleet was also a mistake, I feel. Yes, there is Silkair Studio and many flights are very short, but this is one less differentiating factor from the LCCs. Regionally, you see MH and GA putting IFE screens on their 737 fleet. Perhaps you can argue that these 3 airlines serve completely different market, but I think it is a perception thing. People compare and think "Silkair has worse on board products than MH and GA?? Might as well fly LCC..."

Their current product offering is unable to pass off as premium, while the SQ 'brand' such as the SQ girl can in fact help to boost the premium feel of the airline.

Maybe SQ feels that merging MI into SQ will dilute the SQ brand. In that case, that means they actually know that MI is inferior. Then they better buck up!

[r123]

It does, as many of SQ's passengers are connecting passengers and would've bought a through ticket on SQ. The MI portion would've been sold as a codeshare, giving passengers a surprise when they turn up at the gate or have their Star Alliance benefits taken away for that flight. Nowadays, we also see some destinations being served by both SQ and MI, such as DPS, HAN and CMB. In those cases, the prices most of the time are the same for both airlines.



When I think of Silkair, I already do not think of a premium airline, at least in my mind not as premium as SQ. The decision not to put individual IFE screens on the 737 fleet was also a mistake, I feel. Yes, there is Silkair Studio and many flights are very short, but this is one less differentiating factor from the LCCs. Regionally, you see MH and GA putting IFE screens on their 737 fleet. Perhaps you can argue that these 3 airlines serve completely different market, but I think it is a perception thing. People compare and think "Silkair has worse on board products than MH and GA?? Might as well fly LCC..."

Their current product offering is unable to pass off as premium, while the SQ 'brand' such as the SQ girl can in fact help to boost the premium feel of the airline.

Maybe SQ feels that merging MI into SQ will dilute the SQ brand. In that case, that means they actually know that MI is inferior. Then they better buck up!

Yes I fully agree with the fact that Star Alliance benefit should not be taken away when connecting on MI.

As for the product, a passenger who books let's say FRA-SZX via SIN will be aware that his SIN-SZX portion will be with MI; this is clearly stated. However, it is such a shame that he will not have Star Alliance benefits for the SIN-SZX portion.

IFE is becoming more common amongst short-medium aircrafts but I think that the airlines including IFE in their 737's or 320's are usually airlines that tend to: 1. Not have a regional airline 2. Reserve their wide aircrafts for long hauls only. MH, TK, GA are mostly using 737's or 320's for flights up to 4 hours and going to major destinations whereas MI doesn't (apart from Darwin which I think should be part of SQ rather than MI network).

A regional airline can - as a matter of fact - not pass as premium but they can definitely enter the competition. Not many people outside of Singapore and Malaysia know about Silkair, and those who know might have learned about it through documentaries about MI185 (not a great way of introduction I guess!).

But on the other hand, when you look at Cathay's Dragonair, it is a bit similar but the difference is that they have wide aircrafts which are pretty similar to CX.

Also, we need to remember that what makes premium airlines is the fact that they do only have wide bodies and have their own regional wing. EK has Flydubai CX has Dragon. Thai now has ThaiSmile...

[SQ228]

Yes I fully agree with the fact that Star Alliance benefit should not be taken away when connecting on MI.

LH likes to do this too. You book the ticket on LH, it has an LH flight number. The Star Alliance logo is on your ticket... but this is an EW flight. You Star Gold means nothing here! In any other industry it'd be called false advertising. If you buy a Skoda or a Volkswagen, they don't sell their cars using Audi logos, even though it's the same company.

[xt_20]

Regionally, you see MH and GA putting IFE screens on their 737 fleet. Perhaps you can argue that these 3 airlines serve completely different market, but I think it is a perception thing. People compare and think "Silkair has worse on board products than MH and GA?? Might as well fly LCC..."

That's how I felt taking MI from SIN-KUL a few weeks ago. Got a juice and that was it, on an old A320 with no IFE. At least with AirAsia you can BoB. MH has a better product - IFE (usually) and kacang I would not pay any more for MI.

[PPSFlyer]

That's how I felt taking MI from SIN-KUL a few weeks ago. Got a juice and that was it, on an old A320 with no IFE. At least with AirAsia you can BoB. MH has a better product - IFE (usually) and kacang I would not pay any more for MI.

There is also a USB charging port on MH which may be useful for a quick charge when flying between SIN-KUL.

[CarbonMan]

LH likes to do this too. You book the ticket on LH, it has an LH flight number. The Star Alliance logo is on your ticket... but this is an EW flight. You Star Gold means nothing here! In any other industry it'd be called false advertising. If you buy a Skoda or a Volkswagen, they don't sell their cars using Audi logos, even though it's the same company.

Strange, the good old protector of consumers EU, haven't gone after them for this.

That's how I felt taking MI from SIN-KUL a few weeks ago. Got a juice and that was it, on an old A320 with no IFE. At least with AirAsia you can BoB. MH has a better product - IFE (usually) and kacang I would not pay any more for MI.

MI is behaving like FY - charge full-service airline fares but deliver sub-standard in-flight service. The only differentiation with LCCs are inclusive luggage allowance and a free snack and drink.

[SQfanatic]

I guess that the strategy there is a bit similar to Cathay Pacific and Dragonair (now Cathay Dragon) where the operations merge but the products remain different.

MI is a regional airline of which the fleet consists of only short-medium aircrafts and SQ only has long haul aircrafts. With Scott and Tiger, Silk struggles and needs to proof its product as superior to low-cost while at the same time remaining a regional carrier.

The article mentions one person complaining of paying SQ but getting MI product; it doesn't make sense since Silkair destinations are mostly different from SQ ones. However, Cathay Pacific and Dragonair are sometimes having such practices.

Passenger wise, I don't think that it is going to change anything since Silkair was always part of SQ (reservations system, call centre and so on) but the major issue is that MI has not been integrated within the Star Alliance network while Air China included its subsidiaries (Shenzhen Airlines...) have been part of the network.

What we might see is MI welcoming a few long-haul aircrafts but that is just speculation. But MI not existing anymore doesn't look feasible unless all their aircrafts become long-haul and SQ product compliant.

I think that in SQ's mind, SQ - as a premium airline - needs to fly to premium destinations while MI is here to go to secondary or tertiary cities.

Overall speaking, I think that the main aim of this is for Silkair to distinguish itself as a premium airline and not be overtaken by other low cost carriers.

Yup, the concept of Cathay Dragon came into place when thinking of this thread, too. My father took a family emergency trip and ended up flying CX/KA, so he flew with Cathay Dragon to CCU, and unlike CX did not have the IFE like some of their A330's.

As far as MI, I'm not expecting they would take some longhaul aircraft, and if they do, they should at least provide some IFE like SQ's planes (Take for example the A330), then again too much speculation. However, as far as the 737 MAX, I think I have ridden on a new 738 next gen (which I assume is different than the MAX) recently from SFO-JFK (via DEN, two different 738 with the same cabin), I hope MI does have the similar concept of charging ports. The wifi to access the entertainment system would be decent if you also know where you are mid-flight for example like what I had on UA's flights.

What would really cause SQ and MI to merge into SQ like TR and Scoot to merge into Scoot? Cathay Pacific and Cathay Dragon are two different airlines but operating under the Cathay Brand for example.

[flyguy]

That's how I felt taking MI from SIN-KUL a few weeks ago. Got a juice and that was it, on an old A320 with no IFE. At least with AirAsia you can BoB. MH has a better product - IFE (usually) and kacang I would not pay any more for MI.

Even for Malindo from SIN-KUL-SIN, the fare is usually $150 return during non-peak days and Malindo planes are very new 737-800 to the new 737 Max and have IFE and USB charger port. And it comes with drinks and a snack.

[FN-GM]

Busses have USB charging and its only a short journey. Planes should have them without a doubt.

[pokfur]

MI's 738s do have A/C plugs, but not USB ports. You'd have to bring the charger plug yourself. It's the older A320s that lack them completely.

I think the MI/SQ combination is slightly different from the KA/CX combination. From my understanding, the 'Dragon' brand has been kept because it actually resonates with certain markets that do not know what 'Cathay Pacific' is. On the other hand, I am not aware of anybody that puts Silkair on a high pedestal.

That is why you see that there are a lot more similarities between KA/CX as compared to SQ/MI. I have flown a KA A321 (yes narrowbody!) that is equipped with the same long-haul seats and IFE (with different branding) as CX's 77W fleet. As far as I know, the A330 fleet also has similar interiors as a CX aircraft, and the IFE basically has a red background (i think) vs a green background on CX. I think the greatest cost savings comes from a different cabin/flight crew scheme for KA, which is why you see some apparently low-yielding routes such as KUL being transferred to KA even though it's still operated by an A330.

Again I think that MI will benefit from having products that are more aligned with SQ's to appear as a more premium carrier. Imagine walking on board an MI 737 to find A350 Y seats! I wouldn't hesitate fly that anytime. Now I walk on and think - er, did I just pay extra for an airline that looks and feels completely like an LCC?

[cowie]

MI's 738s do have A/C plugs, but not USB ports. You'd have to bring the charger plug yourself. It's the older A320s that lack them completely.

Hmm, the MI flights on the 738s I took last weekend had the USB ports in Y.

[r123]

1. What we also need to remember is that in Hong Kong, Dragonair faces competition from a non low cost carrier: Hong Kong Airlines. Product wise, Hong Kong Airlines could be centred between KA and CX with KA service but CX destinations plus destinations flown by neither. KA therefore is not in the same comfortable position as MI (which locally competes only with LCC's). That is why the new strategy of rebranding KA was aimed at bringing service quality closer to CX.
Also, all KA flights have a CX code (is MI and SQ the same?). If you fly KA123, it will be CX5123 and so on...
As for IFE, all KA long bodies should now have IFE.

2. When you book MI on SQ site, it asks you your StarAlliance card. Logically, if you input it, will your S* eventually appear? Has any non SQ Star* ever successfully used Star* privileges on MI?
Look at this scenario: you fly from DPS to LHR via SIN with your DPS-SIN portion being with MI. As a Star* member from another airline, SQ entitles you to priority luggage tags. Your luggage in DPS will be handled by MI and transferred to SQ. So I presume that MI staff in DPS would tag the luggage as priority?

[PPSFlyer]

Also, all KA flights have a CX code (is MI and SQ the same?). If you fly KA123, it will be CX5123 and so on...

Yes, it is the same at least for the flights the I often take SIN-KUL-SIN. Most of them are MI flights but with SQ codes attached to them. For example, MI 341 is also tagged SQ 5341 for the same flight.

2. When you book MI on SQ site, it asks you your StarAlliance card. Logically, if you input it, will your S* eventually appear? Has any non SQ Star* ever successfully used Star* privileges on MI?
Look at this scenario: you fly from DPS to LHR via SIN with your DPS-SIN portion being with MI. As a Star* member from another airline, SQ entitles you to priority luggage tags. Your luggage in DPS will be handled by MI and transferred to SQ. So I presume that MI staff in DPS would tag the luggage as priority?

Yes, I got my bags tagged when flying MI and through to the final destination before transferring SQ.