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Old Jul 25, 14, 12:40 am
  #14  
QRC3288
 
Join Date: Nov 2007
Location: Hong Kong
Programs: CX, UA, Shangri-La, Hyatt, Starwood
Posts: 7,654
Originally Posted by LHR/MEL/Europe FF View Post
SQ is happy to put 773s on flights to Australia, and A380s on a select few. Connecting F class traffic I guess.
I think a more likely explanation is that SQ has been decimated by EK, and SQ is doing whatever it can to compete...even if the yields themselves don't justify it. EK offers a high end premium product to Australia and connects to far more cities in Europe...so SQ better at least give what it can. Before the days of the Middle Eastern carriers, SQ's bread and butter was premium connecting traffic Europe to Australia. EK is just crushing them with the bazillion A380s EK flies around, all with F class. SQ cannot give up this fight, even though I can't imagine the yields are great. The real beneficiaries are Australian passengers who probably are getting far more premium service at cheaper prices than what long-term market dynamics call for. Definitely not bad at all for the customers! CX doesn't quite face this predicament, and hence serves Australia with yield in mind. I recall years ago SYD F yields being dreadful.

SQ executives are frank about needing to go head to head against EK even short-term profitability of a route be damned.

Last edited by QRC3288; Jul 25, 14 at 12:46 am
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