SQ's business model are heavily reliant on premium market, therefore, the Suite R class in A380s, better J class in both regional and international flights as well as soon-to-be unveiled upper deck all J class in A380s. The 'pride and prestige' exudes by SQ allows it to charge a premium price in which many people are willing to pay for it.
On the other hand, MH rely on Y class for most of its business. I am not saying that they are not making money from F class and J class, but the number of seats of both classes clearly tells us that they are gunning for more Y class pax only. F class is only available on MH B744 eight seats only. With 38 seats in the new A333 it can be seen that MH is going for "quantity, not quality". Do you get the flow? Kinda oxymoron....
By charging below other airlines, MH hopes that they can make enough money from J class to recover the cost of operation. SQ's principle is opposite like what Johan has stated. They make money even if the J class is not fully packed. J class on most of my flight with SQ were packed to the brim, except maybe the SIN-KUL flight which many alternatives (i.e. LCCs) are available.
MH is shying away from old days. I think the business model will work well for MH. Rather than flying empty F or J class, they can make some money from Y class. It would be even better if they pursue J, Y+ and Y class only. The example from people willing to pay for Hot Seats on AK proves that some of us Malaysians and our international friends are willing to pay a bit more for some extra space and service. I think it would be a even better for its financial bottom line.
On the side note, I think its a trend now that most airlines are now having angled lie flat seats on their regional flights. GA's case is a bit different as their A333s fly some of their longest route. At least the angle is now at less than 10 degrees recline, almost flat bed.
Hopefully, when the A380s arrives, MH will have the same J seats but with fully lie flat seats. Hey, we now have PTVs on our A333 which should be in since like n number of years ago....
Much apologies if I offended anyone. Please do point teach if I made a mistake.
Edited by JuliusWong, 07 April 2011 - 09:58 AM.