SQ ups investment ...

[CarbonMan]

SINGAPORE—Singapore Airlines Ltd. C6L.SG +0.36% plans to raise its capital expenditure by 67% over the next five years as it battles for market share in an industry facing declining corporate demand.

The airline and its peers face lower demand for first- and business-class seats.

The country's flagship airline said it plans to buy new planes and improve its cabins by investing 14.25 billion Singapore dollars (US$11.6 billion) over the period, compared with S$8.55 billion in the previous five years.

"We must venture outside our comfort zone, find new ways to conduct our sales and marketing, reduce expenditure, and improve both productivity and operational efficiency," Chief Executive Goh Choon Phong told employees.

Original Article

[Kyo]

They should spend a bit (a lot) of that on their bloody website for starters. Maybe if people could actually book seats, they would face less 'declining corporate demand'.

Spend more to make more. They used to know this but gave the reins to competitors like EK... a history lesson is in order!

[SilverChris]

They should spend a bit (a lot) of that on their bloody website for starters. Maybe if people could actually book seats, they would face less 'declining corporate demand'.

Whatever for? It's blindingly obvious that a proper, functioning website is an unnecessary luxury for customers, as are decent lounges

[CarbonMan]

They should spend a bit (a lot) of that on their bloody website for starters. Maybe if people could actually book seats, they would face less 'declining corporate demand'.

Spend more to make more. They used to know this but gave the reins to competitors like EK... a history lesson is in order!

They are executing their strategy of "finding new ways to conduct our sales and marketing" - quite successfully so far.

[flyguy]

their premium loads are likely to fall till second half as predicted by some economists and analysts in view of the state of the US, Europe and even Asia"s economy and expected techniocal recession. Perhaps SIA should not go for too high emphasison top end premium classes. And secondly it doesnt look like SIA have new destinations or what are their plans on new destinations ie like how many new destinations to be opened a year etc? When one looks at the rapid expansion of mid-east airlines like Emirates and even Qatar, they have been adding many destinations yearly in view of their aircraft orders and deliveries.

[scooby5]

Filling the planes would be a good start, Op-Ups to those booked at the back to fill the front and sell off the seat again.

[Kyo]

Yeah, but they don't want to Op-Up anybody. They'd rather let them fly empty. That's their SOP...

[Sethor]

They Could open up seats for Krisflyer & other FFP's during the downturn, fills the seats & reduces frequent flyer liabilities. Don't know why airlines did not do this when the GFC hit. SQ could also win back business by matching QR/EY/EK door to door service even Sri Lankan offers this in London, Lounges also need a major overhaul as well they are very average.

[MAN Flyer]

They should spend a bit (a lot) of that on their bloody website for starters. Maybe if people could actually book seats, they would face less 'declining corporate demand'.

Indeed. I actually think those high up in SQ must have been convinced that the website is actually working properly now. How else could you explain the fact it still doesn't work properly ?.

It must have cost them millions in the last year and a half.

[scooby5]

Yeah, but they don't want to Op-Up anybody. They'd rather let them fly empty. That's their SOP...

I know..... I'm just saying it wrong. They cannot complain about loosing profit or marketshare and raise prices to compensate only to go through the same cycle again, all whilst their planes are not totally full and they have options to do something about it.

They are not in a position, these days, to pretend to be so much better than every other airline, especially when their website proves otherwise.

[boing]

Doesn't look too good.

[RHG]

I think its clear that the mentality of the bean counters is that it is a "sellers market" as with a lot of local businesses. The reality is obviously the opposite. There is only so much that can be done for internal controls and cost cutting.

[flyguy]

SIA like other premium carriers needs to identify and have new routes - as it have not been doing so and no releases from them about looking to operating new routes/destinations. Seems like SIA is allowing itself to almost stagnant and even with one or two new routes will not be enough - and it seems like SIA is allowing and using Scoot to expand and Silkair to do likewise with its new order of over 60 Boeings and even may let Silkair take over some of its regional routes too.
If SIA doesnt get back into the game of expanding itself, then there's a real danger of losing itself in future.

[scooby5]

SIA like other premium carriers needs to identify and have new routes - as it have not been doing so and no releases from them about looking to operating new routes/destinations. Seems like SIA is allowing itself to almost stagnant and even with one or two new routes will not be enough - and it seems like SIA is allowing and using Scoot to expand and Silkair to do likewise with its new order of over 60 Boeings and even may let Silkair take over some of its regional routes too.
If SIA doesnt get back into the game of expanding itself, then there's a real danger of losing itself in future.

It first has to improve load on routes it already has without incurring cost on new ones.

[Sethor]

Looks like SQ is going down the same path as QF, but SQ is more vulnerable with no domestic market & surrounded by airlines with a lower cost base.