• WILL THE PREMIUM PASSENGERS PLEASE WAVE THEIR HANDS… PIC/SIM KOK CHWEE
    Aviation

    A Premium Problem

    In a move that showed it is still a believer in the economics and viability of the premium segment despite recent trends indicating otherwise, Singapore Airlines (SIA) has announced more perks and privileges for its most valuable customers, the PPS-card carrying passengers. SIA said the changes were made in response to feedback from PPS members – those who have spent at least SGD250,000 (about USD179,000) – over five consecutive years. Premium (business and first) passengers generate around 45% to 50% of SIA’s passenger revenue. Read the full release here. Our view remains that premium air travel demand is anemic at best. And legacy carriers such as SIA and Cathay Pacific, both…

  • SIA IS BANKING ON THE A350S TO REVIVE ITS REVENUES. PIC/SIM KOK CHWEE
    Aviation

    What next for Singapore Airlines after 4Q loss?

    As it prepares to celebrate its 70th year of operations, Singapore Airlines (SIA) is facing bleak prospects in the near term. SIA announced on May 18 it had posted annual net profit of SGD360.4 million (vs. SGD804.4 million profit in the previous financial year) but in the fourth quarter (January-March 2017) it registered a net loss of SGD138.3 million (vs. SGD224.7 million profit in 4QFY16). Read the official release here. The airline attributed the loss to weaker operating profit and SIA Cargo’s SGD132 million provision for competition-related issues. Unlike many other regional airlines, whose losses were due to poor management and leakages, many of SIA’s problems are structural and some beyond its…

  • CIAO ALITALIA! AN AZ STAFF POSING WITH TWO OF THE CARRIER’S A320S AT VINCENZO BELLINI AIRPORT. PIC/ROSARIA C
    Aviation

    Auguri, Alitalia

    There is a Sicilian proverb that goes: chiu scuru e mezzanotte non po fari, which literally means it can’t get any darker than midnight. It is an apt description for the circumstances that Italian flag carrier Alitalia now finds itself, having been forced into administration just a day after Labour Day. The airline has debts of about EUR3 billion as of end-February. The problems are too many to enumerate and have been too long in the making. And, like many of the other major European flag carriers, the unions wield far too much power and influence, limiting the critical changes that management need to perform in order to stay solvent. But hey, it’s…