SQ continues to upset customers in 2018

[259850]

Again it is a matter of opinion.

In certain market (such as Indonesia), SQ is still regarded as atas (literally mean above/high). If you fly SQ, they perceive you as atas.

They will choose SQ as it is the "great way to fly"

No arguments there. SQ is the "atas" airline anywhere. But they can't seem to make people pay for it. Look at slide 5 here:

https://www.singaporeair.com/saar5/p...e-q2fy1718.pdf

With fuel prices at multi-year lows, SQ should have reported stellar numbers in the 6 months ending September. But as I wrote on another thread, there was plenty of creative story telling in the results.

They can continue to make minor gains (digital this and that, duty free, etc, etc) but the macro trends are not going away. There is significant excess capacity in the airline business and yields will be structurally low for the foreseeable future. Congratulations to Boeing and Airbus for saturating the market.

I remember what I paid for my flight back from college in East Coast US in a summer in the early 90s - on CI, with 3 stopovers (including a miserable 8 hour wait in TPE). Today, I can get the same route at the same price with a seamless transfer in the same airport on a much nicer seat on BR.

Meanwhile the price of a bowl of bak chor mee has probably tripled in the same period.

[SQ_326]

No arguments there. SQ is the "atas" airline anywhere. But they can't seem to make people pay for it. Look at slide 5 here:

https://www.singaporeair.com/saar5/p...e-q2fy1718.pdf

With fuel prices at multi-year lows, SQ should have reported stellar numbers in the 6 months ending September. But as I wrote on another thread, there was plenty of creative story telling in the results.

They can continue to make minor gains (digital this and that, duty free, etc, etc) but the macro trends are not going away. There is significant excess capacity in the airline business and yields will be structurally low for the foreseeable future. Congratulations to Boeing and Airbus for saturating the market.

I remember what I paid for my flight back from college in East Coast US in a summer in the early 90s - on CI, with 3 stopovers (including a miserable 8 hour wait in TPE). Today, I can get the same route at the same price with a seamless transfer in the same airport on a much nicer seat on BR.

Meanwhile the price of a bowl of bak chor mee has probably tripled in the same period.

Atas or premium literally means you have to pay more. To not pay more for something premium is a denial waiting for reality to set it. In term Y class, SQ is charging you more for not reducing the seat width to 17", pitch to 30", a younger fleet, Singapore Girls etc.

[EWR]

SQ has 2 choices: stay in its niche but serve a smaller market, or grow along with the market by offering the product the market wants at a price that it's willing to pay. They've been oscillating between the two, wanting to have it both ways. But at some point, they have to go strongly one way or another. With the large aircraft orders, one can only guess which way it will be. It all starts with auto-included insurance, then 9 abreast 787 seats, then......

http://www.marketing-interactive.com...uffer-from-it/

Aka topping up mindset

[flyguy]

Atas or premium literally means you have to pay more. To not pay more for something premium is a denial waiting for reality to set it. In term Y class, SQ is charging you more for not reducing the seat width to 17", pitch to 30", a younger fleet, Singapore Girls etc.

Not sure if SIA can remain a "premium" airline as some frequent fliers have perceived SIA as going downhill with its cuts in the quality of meals, or reduction in meals and even amenities in its premium class. Most Asia airlines are providing the same level of inflight service and in fact their widebody aircrafts are similiarly equipped and none of them are of course reducing ther seat width or pitch to 30" - and of on a "younger fleet", one can still get aboard a 15 year old SIA aircraft for the next couple of years.

[SQ_326]

Not sure if SIA can remain a "premium" airline as some frequent fliers have perceived SIA as going downhill with its cuts in the quality of meals, or reduction in meals and even amenities in its premium class. Most Asia airlines are providing the same level of inflight service and in fact their widebody aircrafts are similiarly equipped and none of them are of course reducing ther seat width or pitch to 30" - and of on a "younger fleet", one can still get aboard a 15 year old SIA aircraft for the next couple of years.

SQ's fleet is younger. Not all SQ planes are young.

[lingua101]

Atas or premium literally means you have to pay more. To not pay more for something premium is a denial waiting for reality to set it. In term Y class, SQ is charging you more for not reducing the seat width to 17", pitch to 30", a younger fleet, Singapore Girls etc.

And "Retro" aircraft such as SLR?

[SQ_326]

And "Retro" aircraft such as SLR?

If you renovate your house (or even your face), you could take ages out from it. The utility that you consumed or enjoyed out of the house would be far more than the old aged one notwithstanding that the age is unchanged. You would feel younger too

[flyguy]

somewhat different but another bad publicity for SIA.......but believed this is not the first time it happens as have happened some many years ago too ........https://www.msn.com/en-sg/news/singa...cid=spartanntp

[259850]

Once there was a talented chef, let's call him Squire, who had a small number of fine dining restaurants in a nice city. He served the best food, provided the best service and had loyal customers who paid a premium to eat at his restaurants regularly.

There were other restaurants in the city, mind you, but Squire always stayed ahead of the pack with new offerings and unwavering service standards.

The city kept growing (it was a nice city) and more restaurants opened up to serve the growing populace. Cheap fast food chains opened up everywhere to entice people who'd never eaten out to eat out. Now everyone can eat out, they said.

And some casual dining places kept improving their offerings to the point Squire couldn't innovate more to stay way ahead. They also kept opening more outlets. And they kept their prices low, which meant Squire struggled provide the same standards of service he did before.

Squire's customers became less loyal. "Come on," said some, "you need to provide better food and better furniture, but we're not going to pay more because we can get almost as good food and service in so many other places for so much less!"

Squire appealed to his neighborhood zoning officer to control the new restaurant openings; after all, other long standing restaurants elsewhere managed to put some controls in place. But she was not interested in his story. "More restaurants mean more jobs, and more taxes in my coffer," she said.

Now there were two real estate agents in the town, one from Seattle and one from Toulouse. And boy were they good at their jobs. "Squire," they said. "You need to grow! We've got fantastic new style restaurants being planned, and we think you should be the first one to run them; we'll give you more discounts if you open up more restaurants!"

Squire was flattered. He opened lots of new restaurants and the estate agents helped shut his old ones. What a deal!! He tried his best to maintain food quality and service standards at his new restaurants, but there just weren't enough customers willing to pay top dollars. People liked fast food, and people liked casual dining.

Squire quietly opened a few fast food joints in the space he had bought. That worked fine.

But when he introduced a few casual dining concepts in his now expanded fine dining restaurants, customers got upset. They blogged about it and wrote in forums. What should Squire do now?

[loldude333]

Once there was a talented chef, let's call him Squire, who had a small number of fine dining restaurants in a nice city. He served the best food, provided the best service and had loyal customers who paid a premium to eat at his restaurants regularly.

There were other restaurants in the city, mind you, but Squire always stayed ahead of the pack with new offerings and unwavering service standards.

The city kept growing (it was a nice city) and more restaurants opened up to serve the growing populace. Cheap fast food chains opened up everywhere to entice people who'd never eaten out to eat out. Now everyone can eat out, they said.

And some casual dining places kept improving their offerings to the point Squire couldn't innovate more to stay way ahead. They also kept opening more outlets. And they kept their prices low, which meant Squire struggled provide the same standards of service he did before.

Squire's customers became less loyal. "Come on," said some, "you need to provide better food and better furniture, but we're not going to pay more because we can get almost as good food and service in so many other places for so much less!"

Squire appealed to his neighborhood zoning officer to control the new restaurant openings; after all, other long standing restaurants elsewhere managed to put some controls in place. But she was not interested in his story. "More restaurants mean more jobs, and more taxes in my coffer," she said.

Now there were two real estate agents in the town, one from Seattle and one from Toulouse. And boy were they good at their jobs. "Squire," they said. "You need to grow! We've got fantastic new style restaurants being planned, and we think you should be the first one to run them; we'll give you more discounts if you open up more restaurants!"

Squire was flattered. He opened lots of new restaurants and the estate agents helped shut his old ones. What a deal!! He tried his best to maintain food quality and service standards at his new restaurants, but there just weren't enough customers willing to pay top dollars. People liked fast food, and people liked casual dining.

Squire quietly opened a few fast food joints in the space he had bought. That worked fine.

But when he introduced a few casual dining concepts in his now expanded fine dining restaurants, customers got upset. They blogged about it and wrote in forums. What should Squire do now?

I disagree that the estate agents helped him shut his old ones......there are still some of Squire's 16 year old restaurants that haven't been upgraded since 2001....heehee. But the rest is great storytelling!

[259850]

I disagree that the estate agents helped him shut his old ones......there are still some of Squire's 16 year old restaurants that haven't been upgraded since 2001....heehee. But the rest is great storytelling!

I'm booked on SQ983 in early March. Just want to see how different the SRL experience is compared to the PR A321 MNL-HKG experience I had last week. I hope she's not pulled out of service by then.

[cscs1956]

http://www.msn.com/en-sg/news/singap...y2?ocid=ASUDHP

http://www.msn.com/en-sg/news/singap...nr&ocid=ASUDHP

[CarbonMan]

Good story, 259850! Like Star Wars, may I extend it a bit.

Squire has also opened a new chain of restaurants called Scoondu that sold standard food at basic costs. These Scoondu restaurants were usually opened in areas where there are no Squire restaurants and while some opened at dead hours to cater for sleepless people. With growing success, it would seem.

Economically, Squire will need to bank on a growing upper middle class to fill their restaurants. The question is will that class of people grow fast enough for Squire? And will it be able to differentiate sufficiently on quality and service to encourage people to pay a bit more for it? Maybe it has figured it won't and that it will go the "Titantic" model. Extreme opulence at the top end of the restaurant and basic fare in the basement through a different entrance, with payable options to differentiate the riff-raff, including whether you get a life jacket or not.

[259850]

[.....] the "Titantic" model. Extreme opulence at the top end of the restaurant and basic fare in the basement through a different entrance, with payable options to differentiate the riff-raff, including whether you get a life jacket or not.

I thought it's called the Emirates model.

[CarbonMan]

I thought it's called the Emirates model.

Emirates not extreme enough on the low end.