The Hindu Business Line : Singapore Airlines sees phenomenal traffic growth

Although competition in the market has intensified with more flights to the east, we have been able to hold our yields, as our emphasis is on targeting a better traffic mix. - BHARATH MAHADEVAN, MANAGER, SOUTHERN INDIA, SINGAPORE AIRLINES

Mr Bharath Mahadevan, Manager, Southern India, Singapore Airlines

D. Murali
R. S. Murali

Ask Mr Bharath Mahadevan, Manager Southern India for Singapore Airlines (SIA) at Chennai, about the values of his organisation that come to the top of his mind, and he remembers the former Singapore Prime Minister Mr Lee Kuan Yew who had said that the Government would not subsidise the airline and that it had to stand on its own feet. “The then Chairman Mr J. Y. Pillay decided to use service and hubbing as the prime values SIA stands for, given that there was no domestic market and the Singapore population was limited. Bold decisions like offering free headsets in the Economy Class helped put us on the global map,” Mr Mahadevan recounts, during a recent lunch-hour interaction at Business Line. We take our discussion forward over the e-mail and ask him if he is worried about the competition. “Singapore Airlines, as among the leading airlines in the world, has set a benchmark in the ‘travel in style’ sector,” he replies confidently. “India is a big market with its traveller community growing at a robust rate; we feel that there is enough room for everyone.”

Excerpts from the interview:

Singapore Airlines has been a long-time player in India. What are the major trends you have been witness to, in terms of passenger traffic both inbound and outbound?

India has been a very important market for us. We started operations from Chennai in 1970. SIA operates 55 weekly flights to Singapore from eight cities in India, viz. double daily flights from Mumbai, 10 times weekly from Chennai and Bangalore, daily flights from Delhi, 4 times weekly from Kolkata and Hyderabad, and thrice weekly each from Ahmedabad and Amritsar. In addition, SIA’s subsidiary, the regional airline SilkAir, operates daily flights from Kochi, 4 flights from Thiruvananthapuram and thrice weekly from Coimbatore. In terms of outbound passenger traffic, the shift has predominantly been to the business traveller, from the IT (information technology), finance and manufacturing sectors. This is in addition to the student traffic, as well as what we call the VFR traffic (Visiting Friends and Relatives based overseas), mostly to the US and Australia.

Over the past few years, we have also seen a phenomenal growth in MICE traffic (Meetings, Incentives, Conferences and Exhibitions), with Incentives and Exhibitions forming the bulk of the MICE.

A lot of companies find it cost effective and rewarding to incentivise their dealers with overseas trips. Leisure traffic is on the upswing, primarily to the traditional destinations of Singapore, Kuala Lumpur and Bangkok. We are also gradually seeing a shift in travel patterns to new destinations such as Bali, Vietnam, China and Australia.

How big is India in the global pie of Singapore Airlines? Has India’s share been growing over the years? Are there constraints to the growth?

The Indian aviation sector has changed dramatically, particularly in the last three years. The major change, of course, is that the Government has taken a lot of steps towards deregulation of this sector. This has brought in opportunities for airlines to expand their operations in India; also, there is a lot more capacity matched by good demand, which is healthy.

Although competition in the market has intensified with more flights to the east, we have been able to hold our yields, as our emphasis is at targeting better traffic mix.

As mentioned earlier, Singapore Airlines has had good growth over the years and we expect this trend to continue for the forthcoming years as well. The growth has come from various market segments namely corporate, leisure, incentives, etc. An aspect that plays a key role in facilitating this growth for us is our network — both in India and across the globe.

Singapore Airlines has always adopted a disciplined approach in terms of pricing, given our premium product, which attracts the high end, luxury customers.

But this is one part of the story; we do come up with attractive promotional fares ( www.singaporeair.com ) that our customers can benefit from throughout the year so that more people can travel as well as experience our services.

Besides, we provide special fares to select travel agents/tour operators for their travel packages. By managing a good traffic mix catering to different market segments such as business, leisure, migrants, visiting friends and relatives, students, etc. we ensure that our yields don’t suffer.

Another point that we’d like to highlight here is that corporate demand has also shown an upward trend, which has led to healthy business class loads. Hence, on aggregate, we are seeing a positive trend in yields.

On the leisure side, too, market demand has been strong, and hence we have been able to soak up the additional capacity with many travellers wanting to explore new destinations such as Bali, Australia, and New Zealand.

What are the unique attributes that distinguish Singapore Airlines from other carriers?

Over the years, we have made a mark for ourselves as a premier airline. We take great efforts to ensure that the travel experience of the passenger is not compromised at any stage. We take detailed look at the menu, in-flight entertainment and even the aircraft.

We were the first to introduce KrisWorld, a state-of-the-art in-flight entertainment and communications system across all three classes in 1995. We also pioneered high quality theatre-style “surround sound” to in-flight movie viewing in all three classes with Dolby Technologies.

We were the first to involve a comprehensive panel of world-renowned chefs, the International Culinary Panel, in developing in-flight meals. We were also the first to operate the world’s longest non-stop commercial flight between Singapore and Los Angeles in February 2004 on the A340-500, and then surpassing the record later that year with the non-stop service to New York in June 2004.

And we recently launched our latest suite of cabin products that meets, if not exceeds, the expectations of the increasingly sophisticated world traveller. It promises to deliver improvements to all aspects of the customer’s flying experience across all three classes. Our customers travelling on Singapore Airlines’ new B777-300ER services, between Singapore and Paris, and Zurich, will be able to experience these new products.

And that’s not all; we were the launch customers of A380, which changed the definition of travel with the launch of ‘Suites’ – a class beyond first.

Our customers on Singapore Airlines are assured of the same high standard of service and efficiency on the ground as in the air. We utilise the latest technology to enhance personalised customer service, right from the moment the traveller makes a booking until he boards the flight.

Last but not the least, our Silver Kris lounges around the world offers a soothing respite for all First, Business Class, and PPS Club customers to relax or continue working in comfort before they continue on their journey. On the competition front, new entrants and established carriers continue to compete for market share. Singapore Airlines will continue to respond to these challenges and be competitive.

As a manager, how do you motivate your staff?

In my opinion, trust and partnership are two key components for motivation. As a leader I need to inspire trust in my team and this only comes about if they realise that we need to work together as partners to realise a common goal.

Treating them as partners rather than just employees creates: (a) a positive work environment, and (b) the decision making takes a more democratic approach and is mostly unanimous in nature. And most importantly they feel ‘heard’, which goes a long way in keeping the morale upbeat.

You have worked in the Eastern sector. Any insights on passenger preferences?

India is a vast country with cultural nuances, language, buying preferences of people changing every 100 km or so. For example, in the aviation arena, the Eastern region is a more price-sensitive market compared to the Southern region that understands and appreciates value-adds. I remember launching a promotion for Rs 4,000 from Kolkata to Singapore and back, and passengers came to me bargaining for another Rs 50!

On a personal note, what keeps you going?

Knowing that my job is always unfinished and there always something I can do to improve both myself and the organisation.

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