The Hindu Business Line : India, China growth drivers for Singapore Airlines

Route revamp
The airline is hoping that the decision to shift capacity from some routes to others on which there is higher passenger demand, an upgrade in products on offer, better traffic mix and more premium customers will help it weather the storm.

Meera Mohanty

Singapore, July 25

India along with China is keeping the hopes of Singapore Airlines (SIA) alive in the face of downward trends from other markets such as Japan and the US.

Although the airline expects a slightly less robust pace this June quarter compared with last year’s over 20 per cent growth, it plans to increase services in one of the fastest growing markets for the airline.

“India and China are growing markets with opportunities still to be tapped,” Mr Cheng Eng Huang, Executive Vice-President-Marketing and Regions, told a group of visiting Indian newspersons. The US economic slowdown has led to a 20-30 per cent fall in travellers, while the trend in Japan is also worrying, he added. SIA is, however, taking comfort in the fact that most other markets are “holding up quite well.”

Bullish on Premium Segment

The airline is hoping that the decision to shift capacity from some routes to others on which there is higher passenger demand, an upgrade in products on offer, better traffic mix and more premium customers will help it weather the storm.

Declining to share specific figures, Mr Cheng said the premium segment which contributes a “fairly significant” share of the revenue, provided between 15-20 per cent higher yield. In its continued and increasing focus on the premium segment, SIA has started operating flights to Mumbai and Delhi with the Boeing B-777 300 ER (Extended Range) aircraft which provides greater comfort in the cabin to the flyers.

Increase in Frequency

The growth engine of the Indian economy is expected to continue feeding SIA’s business with new travellers. “We may not be able to start operations from a new city immediately, but SIA will certainly look to increase frequency from Bangalore, New Delhi and Chennai which have dense traffic. We are already operating two flights a day from Mumbai and hope to be able to operate two flights a day from Delhi also,” he added.

The airline also hopes to increase the number of weekly flights operated from Hyderabad and Kolkata in the next 12-18 months, SIA’s General Manager, India, Mr C.W. Foo, added

Besides, Silk Air, its 100 per cent subsidiary, is also evaluating the possibility of operating flights from Visakhapatnam and Pune provided the Governments of Singapore and India can firm up new air services bilateral agreement which could provide flying rights to the airline.

Tie-up with AI

SIA is also looking to tie up with Air India, on a code share basis. “Once Air India becomes a member of the Alliance, it’ll be like being part of a family and we will rather look forward to partnering with someone within this club, and we are waiting for that. Air India along with Indian will provide the distribution network that we would look for in a partner,” said Mr Cheng.

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