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Singapore Airlines Says Job Cuts Are Possible

Singapore Airlines Says Job Cuts Are Possible

Old Jun 11, 2017, 3:26 am
  #16  
 
Join Date: Dec 2012
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For the longest time, they have cut and put pressure on their suppliers around the world to bring the cost.

Meanwhile, their own corporate team and staff have gotten complacent. There is much fat to be trimmed and this will be good for SQ.
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Old Jun 11, 2017, 3:42 am
  #17  
 
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Originally Posted by edgewood49
It's my opinion that given the current and going forward these carriers need to add a premium coach product, it works and bridges that huge gap between main cabin and the upper classes which are getting ridiculous as breakfast in Paris. We have what maybe our last upper class flights on EK and BA after that I think premium coach is in our future.
If you mean PEY, I agree, but that's probably not enough. PEY appeals to a limited customer segment - typically older individual travellers who will pay for a non-stop that is less painful without being luxurious. Most airlines with PEY cabins have sized them quite small with only 4-5 rows.

Last edited by KACommuter; Jun 11, 2017 at 3:57 am
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Old Jun 11, 2017, 3:54 am
  #18  
 
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Originally Posted by spk307
Do you have trouble getting out of the past? We are talking about current trends, not the trends of last 20 years.

Emirates is cutting flights. Qatar is removing amenities and trimming their lounges. Hub and spoke model was the king for last 20 years, but growth is bare minimum now.

If you need help to identify current trends, look at the new flight routes being proposed; look at the airplane models that get massive orders!

Its either short haul single aisle or ultra long range.
No, strangely enough I live in the present. I just don't see how going direct non-stop to more destinations with new fuel efficient hardware will be enough help SQ. Their market for origin-destination passengers whom they can offer non-stops to is pretty limited after all. They could launch ultra long haul non-stops to New York, San Francisco, LA, Chicago with premium services - but would they fill their aircraft?

Qingdao non-stop to SFO is not a good comparison - it has Shandung province to feed it and that's 90m people. Singapore has the state of Johor in Malaysia...

And as soon as you feed Jakarta and KL into the mix, why would passengers there not connect via (say) HK with CX instead of through Singapore?

Last edited by KACommuter; Jun 11, 2017 at 4:04 am Reason: Typo errors
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Old Jun 11, 2017, 4:19 am
  #19  
 
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Originally Posted by lokijuh
And Doha!

I think one of the problems with the hub and spoke model at SIN, is just the geographic location of SIN. It's a sensible hub for travelling to/from Australia or Indonesia. It seems to work for Southern India to West Coast US, or East Asia - JNB. But other routes are fare less direct travelling via SIN.

Perhaps SQ also copes better with higher fuel prices. The lower fuel prices have opened up many non-stop routes, that may be more marginal if (when) fuel prices rise again, and the pendulum could swing back to favouring hubs.
+1^
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Old Jun 11, 2017, 9:57 pm
  #20  
 
Join Date: Apr 2006
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SQ Premium Product some times is not premium.
TPR without any Wow factor.
The shower in TPR provides unknown brand toiletries from dispenser.

Once there was a used sock on ottoman, which should not even happen in their premium class beyond first.

But if flight with a good team, you would be treated like a king.
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Old Jun 12, 2017, 2:24 am
  #21  
 
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Originally Posted by spk307

Just take flight routes from China to US. As per Wikipedia,

In 2006, there were 10 non-stop flights between the two countries 2 million passenger trips per year.

As of 2013, there are 28 non-stop routes (not including Hong Kong), operated by three major US carriers, United, American and Delta, and four Chinese carriers, Air China, China Eastern, China Southern and Hainan Airlines. By 2014, there will be 35 non-stop routes.

Even Qingdao has a non stop flight to SFO. Earlier the same would have been through HKG. No wonder Cathay is in same situation as SQ. The China traffic has dried up for Cathay and to a smaller extent for SQ.
How many of these are non-stop routes without a hub at one end of the journey? Using the Qingdao-SFO service as an example, it is operated by MU. Wikipedia lists Qingdao as a secondary hub for MU, so definitely a hub at one end there. Earlier, most likely this trip would have been as likely, or more likely, to be via ICN or NRT as HKG.

It seems the trend is away from routings via mid-journey hubs to non-stop long hauls supported by an extensive short haul network at one end of the journey.
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Old Jun 12, 2017, 4:43 am
  #22  
 
Join Date: Aug 2005
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Originally Posted by terbangalways
Nowadays companies are reducing costs. Business travellers rarely have our voices over our preferences.
Premium corporate travellers fly ME3 rather than SQ.

I have seen very reasonable long haul premium fares. But still can't beat those offered by QR.

Plus deteriorating inflight service, poor J seats cubby foot rest, over crowded lounge in SIN. SQ in need to revamp fast!

Travel budgets have been under stress for some time though I managed to bend the corporate rules for 20+ years and I know Im not the only one.

The big challenge for SQ is their shrinking market share in the premium air travel market and it does not help SQ and the Singapore air hub that Emirates, Qatar and Etihad have been ramping up services to and from Singapore in recent years with high quality product. SQ have lost loyalty as evidenced in reductions in PPS membership, a problem which is traceable back to sweeping loyalty program changes made ten years back when the airline felt loyalty was a liability and culled membership.

Its fixable; SQ can and will take near term action to return to profitability. I just hope the longer term review addresses among other things loyalty programs.
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Old Jun 12, 2017, 12:13 pm
  #23  
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1 crew in J and 2 in Y.
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Old Jun 12, 2017, 8:36 pm
  #24  
 
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Originally Posted by SQveteran
I just hope the longer term review addresses among other things loyalty programs.
One thing I think the myopic singular focus on J & F passengers is a folly they need to address. Sure J & F provide a lot of revenue, but surely they're not the only profitable passengers.

It struck me when when comparing a $6k SGD fare to ZRH in business, and a couple of weeks later an economy to CGK for almost $1k return (admittedly CGK-SIN was so heavily booked across all carriers such that if my SQ waitlist didn't come through - I was going to get GA from CGK to Batam and catching the ferry ..).

Anyway for ZRH J fare, you accrue PPS dollars and 16,000 elite miles. For the $1k fare you get just 1100 elite miles. I'd hazard a guess the margin on the $1k fare is much higher.

Even economy fares, it favours long haul .. lot more 21,000 elite miles for a flexi $2k return from MEL-LHR vs the high value short flights like CGK that get 5% of the miles for 30% of the cost ....

Last edited by lokijuh; Jun 12, 2017 at 8:58 pm
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Old Jun 12, 2017, 8:57 pm
  #25  
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In terms of which cabins make money for airlines, this is an excellent video for Wendover Productions. They do fantastic videos.

Note the part about 2/3 of an airline's revenue comes from.....


The Economics of Airline Class

Mar 14, 2017

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Old Jun 12, 2017, 9:11 pm
  #26  
 
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Originally Posted by lokijuh
One thing I think the myopic singular focus on J & F passengers is a folly they need to address. Sure J & F provide a lot of revenue, but surely they're not the only profitable passengers.

It struck me when when comparing a $6k SGD fare to ZRH in business, and a couple of weeks later an economy to CGK for almost $1k return (admittedly CGK-SIN was so heavily booked across all carriers such that if my SQ waitlist didn't come through - I was going to get GA from CGK to Batam and catching the ferry ..).
Think the SIN/CGK route is probably one of the rare ones with a high yield in Y for SQ as the alternatives are a LCC or Garuda. Same as the HKG/PVG route today for a lot of business travellers based in HK. Many of us pay more and travel with KA in order to avoid the delights of MU (which now include blown up engine cowlings) or HX.
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Old Jun 12, 2017, 9:37 pm
  #27  
 
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Originally Posted by KACommuter
Think the SIN/CGK route is probably one of the rare ones with a high yield in Y for SQ as the alternatives are a LCC or Garuda.
Our corporate policy requires lowest non-LCC on most routes. Which means not SQ.

However we can choose SQ (or other carriers) in preference to local carriers on some routes, including GA,VN, PR and mainland Chinese carriers. But we also have our budgets to manage. I'm more inclined to accept GA than other carriers though (eg I try to go SQ to MNL instead of PR).
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Old Jun 12, 2017, 9:45 pm
  #28  
 
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Originally Posted by KACommuter
No, strangely enough I live in the present. I just don't see how going direct non-stop to more destinations with new fuel efficient hardware will be enough help SQ. Their market for origin-destination passengers whom they can offer non-stops to is pretty limited after all. They could launch ultra long haul non-stops to New York, San Francisco, LA, Chicago with premium services - but would they fill their aircraft?

Qingdao non-stop to SFO is not a good comparison - it has Shandung province to feed it and that's 90m people. Singapore has the state of Johor in Malaysia...

And as soon as you feed Jakarta and KL into the mix, why would passengers there not connect via (say) HK with CX instead of through Singapore?
This "so-and-so" analysis about X having X amount of people always cracks me up, because it ignores geography and a whole lot of socio-economic factors. CX has the ENTIRE Chinese market and it doesn't seem to be doing too well, eh. 1.3 billion people! Even if you talk about Guangdong province alone that's 108 million people. And you don't realise that the same issue persists on CX vs SQ. When there's JL, NH, BR, CA, CZ, MU, HU, CI, KE, OZ all being able to bring one to North America - there's no conceivable reason why one would choose CX as well. And bar the four major Chinese carriers, all the rest do give CX a run for their money for the experience.

Long-haul US flights are for O&D demand. They might be in fact, able to feed four flights if Singapore maintains its position as a financial hub in SEA. Surprisingly - that's something you might not know.

But that ignores the fact that hub-and-spoke still serves as the basis of SQ's model with Indonesia and Australia as their main feeders. While certainly geography makes SQ's position more challenging, at least they have the brains to develop other markets such as LCCs rather than be CX/KA and impose exorbitant prices, expect HKers to pay it and prevent challengers like Jetstar HK from entering their market. Which, obviously, isn't working so well.

In fact, SQ cutting its ranks is honestly expected. Parkinson's law affects all organisations, not just SQ. Even CX is going with their cuts.
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Old Jun 13, 2017, 7:45 pm
  #29  
 
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Originally Posted by lokijuh
One thing I think the myopic singular focus on J & F passengers is a folly they need to address. Sure J & F provide a lot of revenue, but surely they're not the only profitable passengers.

[...]

The focus of SQ is indeed J & F because SQ is a premium carrier and it makes most of its money from premium class seats.

Over the next few months you will see SQ significantly discount economy class seats for flights in non-peak periods. Flying with empty seats is not positive and they know they need to improve yield.

That said, I agree with you that loyalty programs must embrace all classes of travel. The old business school mantra of the cost to acquire customers far exceeds the cost to keep them still holds true today.
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Old Jun 13, 2017, 10:10 pm
  #30  
 
Join Date: Jul 2005
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Originally Posted by SQveteran
Over the next few months you will see SQ significantly discount economy class seats for flights in non-peak periods. Flying with empty seats is not positive and they know they need to improve yield.

That said, I agree with you that loyalty programs must embrace all classes of travel. The old business school mantra of the cost to acquire customers far exceeds the cost to keep them still holds true today.
Discounts on Y aside, I wish they would allow members to earn more miles than the measly 10% on discounted fares. Even a comparison against other *A airlines show that most airlines offer a minimum of 25%. The fact that other airlines allow me to earn more miles will drive me to take other *A carriers if the flight time is not significantly longer.

I earn more miles on a 1-night hotel stay than flying on a discounted fare on SQ.
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