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SIA reduces PAX capacity by 7.6% and suffers fall in reveneue per passenger km

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  • SIA reduces PAX capacity by 7.6% and suffers fall in reveneue per passenger km

    Singapore Airlines posted last week its January operating results, revealing 3.3 percent drop in the number of passengers carried to 1.4 million compared to the same period a year ago.

    The carrier said its system wide passenger carriage, measured in revenue passenger kilometres, fell 1.6 percent on the back of a larger reduction in capacity of 7.8 percent.

    Capacity was lower due to SIA's planned reduction in frequencies termination of services to Amritsar and Vancouver (via Incheon), and the transfer of Hyderabad and Penang operations to SilkAir.
    Subsequently, January's passenger load factor increased 5.0 percentage points to 79.1 percent.

    SIA said passenger demand continued to recover in tandem with the improving global economy with all region recording improvements in passenger load factors during the month.

    In its cargo business, overall cargo carriage improved by 3.3 percent on the back of a company wide cargo capacity reduction of 6.8 percent.
    Overall cargo load factor improved 5.9 percentage points.

  • #2
    It would sure help their bottom line if their business class fares were cheaper than some first class fares on *A member airlines...

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    • #3
      You may be right in the short term. But how about the long term? Once you drop fares it's difficult to raise them again.

      Also, their J class, in their minds, stacks up nicely to the opposition - hence the premium.

      Many companies won't allow F class travel for all except the C level. So, they may have positioned themselves to have a comparable F class product, but in the C class category, priced higher than the C competition. But in this day and age, accounting is also looking at the fare, and not just class flown.

      SQ C used to be between F and Y - now it's between a rock and a hard place.
      Last edited by bmchris; 23 February 2010, 02:23 AM.

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