Singapore Airlines
Reduction and suspension is the new game for Singapore Airlines
One of Asia’s biggest carriers, Singapore Airlines (SIA), has announced that it is planning to reduce capacity by 11 percent between April and March 2010. The airline has also announced its decision to suspend flights to Vancouver, Canada.
SIA said that it will cut capacity this by decommissioning 17 aircraft. According to published reports, only four aircraft were due to be phased out, one to be converted to a freighter while the other three would be returned to lessors.
Singapore Airlines CEO Chew Choon Seng said: “The drop in air transportation has been sharp and swift. Given the falls of over 20 per cent that we have seen recently in air cargo shipments, and the tradition of demand for air travel following closely behind trends on the cargo side of the business, we have to face the reality that 2009 is going to be a very difficult year.”
Seng added, “We have already taken action such as expanding and stepping up training and re-training programs, and we will contemplate retrenchment only as a last resort, but we do not have the luxury of time and we need to agree and act on some measures quickly so that we can push back the point of retrenchment as far as possible and improve our chances of avoiding it altogether.”
SIA also said is it “indefinitely” suspending its three-times-weekly service between Singapore and Vancouver, via Seoul. The airline is planning to operate its last flight from Singapore to Vancouver on April 25, 2009.
The Asian carrier has put the blame on performance on the route having been badly affected by the global economic downturn and the reduction as part of its continuing commitment to ensure capacity is best matched with demand in the current economic conditions as the reasons for its decision. SIA said the “decision to suspend service is most regrettable” as Singapore Airlines has served Canada for over 20 years.
The airline noted that arrangements are being made to inform those customers affected by the change, and to offer them alternative travel solutions. A refund, without penalty or fee, for unused travel will be given to customers currently holding tickets issued prior to Feb. 14, 2009 for Singapore Airlines flights after April 25, 2009 between Singapore and Vancouver, or Seoul and Vancouver.
The airline reported last week reported that its profit for the October to December period was down 43 percent compared to 2007.
Comments
Heya Karl,
Send all those tourists to Thailand instead, we'll take good care of them and of you. Nothing's for free, how can Singapore Airlines be so shortsighted and amputate such a promissing market like that>?
Thai airways isn't doing too well financially, they will have to take some measures, but im sure cutting off commissions to agents wont be in their plans.
In spite recent events (that we all know) Thailand has much to offer, and is still SE Asia's top tourism destination.
SQ policy for Zero % commission has seen further downfall in India. The Travel Fraternity has solidly supported SQ all these years, thru good as well as turbulent times. However, their adamant attitude has seen withdrawal of support from the entire travel fraternity since 29th Dec'09. As per statistics avbl, 11% of their turnover comes from India but they would rather fall then rise. India is not similar to other countries i.e. North America, Europe in their business module as most sales are thru travel agents, who market on behalf of the airline, give bank guarantess, collect payment from customer, service them and then find that SQ does not want to pay/remunerate the Travel agent but wants us to charge the customer over and above the airfare. The Indian outbound market is still strong compared to other markets and we hope SQ and few other foreign airlines see sense and start paying commission just like our National carrier Air-India, Kingfisher, Jetairways, Emirates, Virgin, BA, Ethihad etc
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