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Old 24th May 2017, 04:00 PM   #31
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Originally Posted by Unionruler View Post
The cannibalisation is due to the product mix, like the Group must have knowingly absorbed it knowing that overall it would be able to capture more profitable target markets. I think it wouldn't work if say, a lot fewer Singaporeans didn't have relatively strong and/or blind loyalty to SQ.

Also, CX's recent financial performance is a lot worse...
If SQ is going to lose customers to a budget airline, rather lose customers to one in it's fold than another airline group. This is where SQ has managed to come ahead of CX, which has stuck to its dual carrier strategy ala SQ-MI of past. SQ has evolved out of it.
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Old 26th May 2017, 10:36 PM   #32
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SIA has lost market share and needs new strategy

Since 2014, the number of passengers SIA carried has barely budged, even though Asia-Pacific passenger demand rose some 11 per cent and carrier capacity grew by only 8 per cent.
Last week, Singapore Airlines (SIA) released a crushing set of financial results, reporting a group net loss of $138 million for the most recent quarter. Passenger yield per kilometre dropped by almost 5 per cent. Unsurprisingly, the company's shares plummeted by more than 7 per cent.

The challenges to the group are coming on all fronts. Low-cost carriers are putting the squeeze on conventional point-to-point travel connecting cities in South, East and South-east Asia. At the same time, the leading Middle Eastern carriers - Emirates, Etihad and Qatar, known as the ME3 - are challenging SIA's bread-and-butter premium hub-and-spoke international routings.

Adding to the pressure, the traditional set of competitors that SIA feasted upon for years - American carriers and other regional players such as Thai Airways and Garuda - has taken strong steps forward.

Across the industry, decades of consolidation and rounds of bargaining with pilots, ground crew and in-flight crew have brought costs down and reduced over-capacity. The combination of lower costs and higher revenues has thrust the profits of American carriers skyward. Even the recently maligned United Airlines has seen its stock price increase threefold in the past five years.

Closer to home, Thai Airways and Garuda have reinvested in the hardware and software of air travel. After a decade of trying to compete with low-cost carriers, they have returned to their roots: competing on long haul for business-class and less price-sensitive economy-class customers, updating their fleets and reinvigorating their in-flight service.

SIA states that it is a combination of competition, and political and economic uncertainty that is driving losses. But it is this triumvirate of competition - low-cost carriers, new premium carriers and reborn traditional long-haul competitors - that is the main cause of its losses.

SIA's core business is the premium, long-haul segment. Since 2014, the number of passengers carried by Singapore Airlines has barely budged, yet across the Asia-Pacific, passenger demand increased by 11.2 per cent while carrier capacity grew by only 8 per cent. The Middle East and Europe charted similar numbers.

The message is clear: SIA is losing market share. Even in a growing market, with demand growth outstripping capacity, SIA is not growing.

The strategic response has been for SIA to try to strengthen its premium services while building a range of offerings across the low-cost and full-service positions using the Singapore Airlines, SilkAir, Tiger Air and Scoot brands.

In response to weak performance, the group has emphasised the need to compete in all segments and indeed to strengthen its low-cost regional (Tiger Air) and low-cost long-haul (Scoot) offerings.

But adjusting the portfolio disguises the core problem: SIA as a premium airline is losing in competition in its segment. Placing more emphasis on other segments is a tacit acknowledgment that the battle cannot be won.

This is unfortunate because SIA has been a leading player in the aviation world for 70 years. Throughout its history, it has carefully, consciously and meticulously cultivated its image and services to be the leading long-haul carrier based in Asia.

During the days of leadership by Mr J.Y. Pillay, the company grew from a small regional player of 12 aircraft in the early 1970s to an industry leader in the 1990s. It followed its vision to be a top-quality intercontinental airline of South-east Asian origin, offering the best in-flight service in the world.

SIA had no choice but to compete strategically. With no domestic market, the carrier could only book revenue by beating other airlines. And it did this very well, battering Asian, North American and European competitors for decades.

But a history of success does not guarantee a future of success. SIA today has the same vision as it did in the 1970s - so will the same strategy lead to success?

The answer increasingly appears to be "no". The current industry landscape pits Singapore Airlines against a robust set of competitors, led in particular by the ME3. Much as SIA aimed for leadership as a matter of national pride and economic growth, the ME3 are part of a large-scale, heavily resourced effort to build air travel that transits through Middle Eastern hubs.

These new airports in the Middle East are fantastic, with the airlines offering incredible in-flight service. With national resources willingly devoted to the development of this industry, first-class, business-class and economy-class fliers on these airlines receive more in services than what they pay for. Unsurprisingly, the ME3 have posted five consecutive years of strong growth.

Singapore Airlines has a strong balance sheet, a substantial cash war chest and massive, unmatched experience in providing premium service at a competitive price. It can meet the ME3 carriers head-on if it so chooses.

But competing against companies determined to win at all costs can be a taxing proposition. If SIA is willing to endure continued losses for the foreseeable future, then it should continue to meet the ME3 head-on.

Alternatively, SIA could chart a new course, aiming at a new segment of full-service long haul.

With growing passenger demand, there is a segment of the market that looks for a price between low-cost and premium, where the flying experience is uncomplicated and pleasant, and where the competitors are still ones that SIA can dominate.

What choice SIA makes now is as important as any in its long history. The airline industry has changed, so SIA must change its strategic direction accordingly.

The company's leadership must have the courage and foresight to lead the company into new decades of success in a tough industry that is more challenging than ever.

The writer is Head of the Department of Strategy & Policy at National University of Singapore Business School.

Source: http://www.straitstimes.com/singapor...ime=1495756200
Obviously SIA is losing its market share when its fares from Sydney to Hong Kong is as expensive as Cathay Pacific. Also obviously they are losing customers when they still have those aging B772ERs with old Economy seats.

I think SIA's service and its products is getting a little outdated, even the times of routes are outdated as well with no red eye service ex-SYD, and no red eye service to HKG.

It's time for SIA to refresh itself to bring us to the 21st century, so that passengers will start to come back to SIA.
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Old 27th May 2017, 09:08 AM   #33
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Well,It's time for SQ to review and enhance the Krisflyer & PPS Club program if they are serious in retaining the loyalty of it's most regular flyers before competition erodes them further. In my opinion, SQ's pathetic frequent flyer program does little to incentivize brand loyalty to SQ
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Old 27th May 2017, 11:34 AM   #34
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Originally Posted by Tonitan View Post
Well,It's time for SQ to review and enhance the Krisflyer & PPS Club program if they are serious in retaining the loyalty of it's most regular flyers before competition erodes them further. In my opinion, SQ's pathetic frequent flyer program does little to incentivize brand loyalty to SQ
+1!!!
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Old 27th May 2017, 11:59 AM   #35
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Originally Posted by Tonitan View Post
Well,It's time for SQ to review and enhance the Krisflyer & PPS Club program if they are serious in retaining the loyalty of it's most regular flyers before competition erodes them further. In my opinion, SQ's pathetic frequent flyer program does little to incentivize brand loyalty to SQ
Regarding Krisflyer, I think on the whole Krisflyer isn't too bad.

Positives:

- Saver seats are actually available for those who are willing to plan ahead, and on off-peak flights/dates availability isn't too bad.

- Point redemption rates are still reasonable. The recent point devaluation was quite mild compared to what has been happening to other airlines. Accrual could be better, but at least more Y fares are eligible for point accrual these days.

Negatives:

- Have never been PPS myself, but from what others have said, I tend to agree that they need to improve benefits for PPS, or even rollback the scheme to what it used to be. I encounter fewer fanatical SQ/PPS supporters nowadays than I used to.

- Usually, no op-ups unless overbooked. Time to scrap this policy. Might have worked before, but times have changed. Not asking SQ to pack the front cabins, but I think delighting your loyal customers from time to time cannot be a bad thing.

- SQ could treat frequent flyers who travel in economy better. (Translation: "SQ could treat me better" ). I used to fly 150-200K miles a year exclusively on SQ, which is equivalent to qualifying for Gold 3 or 4 times over in a single year. And yet PPS was out of reach. I wrote to Krisflyer customer service to ask for an exception, but never got beyond the first layer of customer service, whose role seems restricted to cut and paste responses to simple questions. Solution? These days, I fly up to 50K miles on SQ each year till I reach Gold, then switch to Oneworld to qualify for OW Sapphire (Equiv to *Gold) as well. Net result for me: I earn/burn miles and get FF privileges on both Star and Oneworld alliances. Net result for SQ: half or more of my annual Y spend which used to go to SQ goes to the competition. They could easily get this revenue back from me by creating a new PPS tier for, say, 100K or 150K miles a year in Y.

Last edited by yflyer; 27th May 2017 at 12:04 PM..
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Old 27th May 2017, 12:16 PM   #36
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Another cost-cutting move, this time it might actually be a win-win situation.

http://www.sqtalk.com/forum/showthre...717#post210717
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Old 27th May 2017, 12:19 PM   #37
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Originally Posted by Metropolitan Airlines View Post
Obviously SIA is losing its market share when its fares from Sydney to Hong Kong is as expensive as Cathay Pacific. Also obviously they are losing customers when they still have those aging B772ERs with old Economy seats.

I think SIA's service and its products is getting a little outdated, even the times of routes are outdated as well with no red eye service ex-SYD, and no red eye service to HKG.
If they would have competitive fares, the product would not matter that much. Especially not in Y. There is worse in the sky and still they make money.

Anyway, SQs problem is the cost side rather than the revenue side. The (Overall) loadfactor should be good enough to earn a decent profit. My (very) subjective feeling is, that loadfactor significantly improved (i heard the word "waitlist" from my TA quite often this year, which iam not so used too).

Last edited by SQ025; 27th May 2017 at 12:30 PM..
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Old 28th May 2017, 12:18 AM   #38
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Originally Posted by yflyer View Post

- SQ could treat frequent flyers who travel in economy better. (Translation: "SQ could treat me better" ). I used to fly 150-200K miles a year exclusively on SQ, which is equivalent to qualifying for Gold 3 or 4 times over in a single year. And yet PPS was out of reach. I wrote to Krisflyer customer service to ask for an exception, but never got beyond the first layer of customer service, whose role seems restricted to cut and paste responses to simple questions. Solution? These days, I fly up to 50K miles on SQ each year till I reach Gold, then switch to Oneworld to qualify for OW Sapphire (Equiv to *Gold) as well. Net result for me: I earn/burn miles and get FF privileges on both Star and Oneworld alliances. Net result for SQ: half or more of my annual Y spend which used to go to SQ goes to the competition. They could easily get this revenue back from me by creating a new PPS tier for, say, 100K or 150K miles a year in Y.
I followed suit, and I believe many more may be doing so too.
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Old 29th May 2017, 06:44 AM   #39
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Not sure if it's been mentioned, but side note... no more playing cards in YCL
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Old 29th May 2017, 03:40 PM   #40
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Originally Posted by yflyer View Post
- SQ could treat frequent flyers who travel in economy better. (Translation: "SQ could treat me better" ). I used to fly 150-200K miles a year exclusively on SQ, which is equivalent to qualifying for Gold 3 or 4 times over in a single year. And yet PPS was out of reach. I wrote to Krisflyer customer service to ask for an exception, but never got beyond the first layer of customer service, whose role seems restricted to cut and paste responses to simple questions. Solution? These days, I fly up to 50K miles on SQ each year till I reach Gold, then switch to Oneworld to qualify for OW Sapphire (Equiv to *Gold) as well. Net result for me: I earn/burn miles and get FF privileges on both Star and Oneworld alliances. Net result for SQ: half or more of my annual Y spend which used to go to SQ goes to the competition. They could easily get this revenue back from me by creating a new PPS tier for, say, 100K or 150K miles a year in Y.
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I followed suit, and I believe many more may be doing so too.
I'm doing the same as a QPPS too, as TPPS amount is, as of now, beyond reach and takes too long to achieve. I'll allocate $25k to SQ and the rest goes to other carriers for me to gain status on another alliance.
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Old 30th May 2017, 06:44 PM   #41
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Originally Posted by yflyer View Post
Regarding Krisflyer, I think on the whole Krisflyer isn't too bad.


- SQ could treat frequent flyers who travel in economy better. (Translation: "SQ could treat me better" ). I used to fly 150-200K miles a year exclusively on SQ, which is equivalent to qualifying for Gold 3 or 4 times over in a single year. And yet PPS was out of reach. I wrote to Krisflyer customer service to ask for an exception, but never got beyond the first layer of customer service, whose role seems restricted to cut and paste responses to simple questions. Solution? These days, I fly up to 50K miles on SQ each year till I reach Gold, then switch to Oneworld to qualify for OW Sapphire (Equiv to *Gold) as well. Net result for me: I earn/burn miles and get FF privileges on both Star and Oneworld alliances. Net result for SQ: half or more of my annual Y spend which used to go to SQ goes to the competition. They could easily get this revenue back from me by creating a new PPS tier for, say, 100K or 150K miles a year in Y.
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I followed suit, and I believe many more may be doing so too.
Agree on this, and I do the same to meet the 50k miles requalification and look for other options.
With regards to business trips, not every company has policies that allow premium class flights, even at senior management levels.
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Old 30th May 2017, 10:18 PM   #42
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I have also heard that on another forum that they are cutting back the menus on Y class, as well as take off drinks and nuts for short haul flights to Hong Kong?
Also they will distribute wet paper towels instead of hot towels?
Are they true?
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Old 30th May 2017, 10:53 PM   #43
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I have also heard that on another forum that they are cutting back the menus on Y class, as well as take off drinks and nuts for short haul flights to Hong Kong?
Also they will distribute wet paper towels instead of hot towels?
Are they true?
I certainly hope we don't see an end to hot towels in YCL. It's just so homey to smell the SQ scent and receive a fresh towel at the start of a flight and prior to meals. Really makes a difference.
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Old 30th May 2017, 11:22 PM   #44
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I guess we have to accept that cost cutting in economy is inevitable. In this way this will make Premium Economy for attractive for passengers.

I won't be surprised to see the pre-take off drinks cut. Happy for the nuts to be cut. Since they aren't that healthy and use palm oil.

Hot towels will likely become paper towels. I guess amenity kits will be cut. Menus can be cut too and have the crew flash the cards of the main course during service or have the menu shown on the IFE.

In fact I would go forward to suggest that SQ could go down the EK route and charge pax who are paying the cheapest seats to pay to select seats in advance.

I would also suggest SQ to go 3-4-3 on the 77W.
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Old 31st May 2017, 03:52 AM   #45
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I guess we have to accept that cost cutting in economy is inevitable. In this way this will make Premium Economy for attractive for passengers.

I won't be surprised to see the pre-take off drinks cut. Happy for the nuts to be cut. Since they aren't that healthy and use palm oil.

Hot towels will likely become paper towels. I guess amenity kits will be cut. Menus can be cut too and have the crew flash the cards of the main course during service or have the menu shown on the IFE.

In fact I would go forward to suggest that SQ could go down the EK route and charge pax who are paying the cheapest seats to pay to select seats in advance.

I would also suggest SQ to go 3-4-3 on the 77W.

I agree amenity kits should be cut. But 3-4-3 and nuts..? Probably not.
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