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SIA to make flight network changes next year

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Wealthy Indonesians will vote with their feet and fly with SQ only even though GA has improved a lot over the years. CGK remains the only SEA route to have SQ F class service and have the latest B77W on its daily rotation. With this addition, SQ is clearly leveraging on its branding and the large Indonesians migrants in SYD. We may see SIN-CGK-MEL soon enough.

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Would love to see a SIN-CGK-PER flight that arrives into PER circa 8-9am, then departs back mid morning at 10:30 vv.. Slots at PER only constrained by the first wave of return FIFO flights.. Otherwise, it's an international lull period for PER, barring the QF flight to SIN.

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BWN has SQ F service twice a week.

MNL too, I think

Of yes, BWN and MNL. Thank you for the reminder.

 

i foind this SQ route map from 1976. SQ apparently is reviving an age-old route: CGK to SYD

 

244ebdk.jpg

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Yes. First thing in my mind is the failed MH flights to Australia via CGK several years back.

 

How long did the failed KUL-CGK-MEL flights last for? Which year was that. I vaguely remember they did that, it was quite short right?

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From SQ insider: The following routes are struggling:

  1. SIN-CBR-CHC
  2. SIN-MAN-IAH
  3. SIN-DME
  4. SIN-DUS
  5. SIN-FRA-JFK (to lesser extent, on certain periods)
  6. SIN-MUC
  7. SIN-CPH
  8. SIN-BCN
  9. SIN-MXP

SIN-MXP might be hand over to TZ. SIN-CGK-SYD will remain in back burner for next few years.

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Most of the routes involve European destinations - looks like European economies are struggling and business travel is no longer as lucrative for SQ as it used to be.

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SIN-CBR-CHC I would imagine is heavily incentivized, don't think this route will be gone anytime soon.

SIN-MAN-IAH (and previously DME) I think was heavily dependent on O&G, which as we all know is struggling now. I think SQ will continue to bleed this one out until the industry recovers as to not lose the premium traffic.

If SIN-MUC is struggling, I think SIN-DUS even more so.

CPH, MXP and BCN (in order) I think will be favorite candidates to be given the axe.

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Most of the routes involve European destinations - looks like European economies are struggling and business travel is no longer as lucrative for SQ as it used to be.

 

European economies except Greece have recovered from 2008 recession. Believe SQ market share and yield is eroded by ME3.

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In hindsight, it was somehow a good idea that MH withdrew almost completely from European markets and Istanbul too. Judging by SQ's numbers, not many premium carriers could have make it.

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European economies except Greece have recovered from 2008 recession. Believe SQ market share and yield is eroded by ME3.

Believe just because the European market has recovered doesn't mean it's strong. Believe the Europe-Asia market has been struggling over the past year, which also makes me believe the ME3 isn't the only contributor to SQ's miseries. But that's just my belief.

 

Thai still champion having and adding more capacity to Europe

TG's European expansion is modest at best. For the most part they're just reinstating frequencies or destinations. (FRA, LHR, DME etc). Also, they're not after the same sort of high-yield traffic that the likes of SQ and CX are after. Some of the new flights/frequencies are clearly targeted at tourists.

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In hindsight, it was somehow a good idea that MH withdrew almost completely from European markets and Istanbul too. Judging by SQ's numbers, not many premium carriers could have make it.

Yes, MH and D7 stopped their bleeding early due to the nature of their traffic - leisure travel. These will be the first markets to cut expenditure.

Believe just because the European market has recovered doesn't mean it's strong. Believe the Europe-Asia market has been struggling over the past year, which also makes me believe the ME3 isn't the only contributor to SQ's miseries. But that's just my belief.

The European economies are hardly growing - although they stopped the recession, that is all they have done. The growing numbers of Syrian, Iraqi and Afghan, etc. refugees is putting a huge strain on their economies.

 

Do note that both Air France and Lufthansa failed to restore their flights to KUL, despite enjoying monopoly positions. That is how weak the market has become.

ME3 are not really having it good either. Emirates' profit has declined drastically and neither Etihad nor Qatar wishes to disclose their financial information. So all is not so well in the airline industry.

It will be interesting to see what SQ reports when they publish their Q4 2016 financials.

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Yes, MH and D7 stopped their bleeding early due to the nature of their traffic - leisure travel. These will be the first markets to cut expenditure.

The European economies are hardly growing - although they stopped the recession, that is all they have done. The growing numbers of Syrian, Iraqi and Afghan, etc. refugees is putting a huge strain on their economies.

 

Do note that both Air France and Lufthansa failed to restore their flights to KUL, despite enjoying monopoly positions. That is how weak the market has become.

ME3 are not really having it good either. Emirates' profit has declined drastically and neither Etihad nor Qatar wishes to disclose their financial information. So all is not so well in the airline industry.

It will be interesting to see what SQ reports when they publish their Q4 2016 financials.

 

ME3 is affected largely by the slow down in O&G industry.

 

On AF and LH to KUL, the demand is smaller than BKK or SIN, aircraft sent was too big and many chose to travel with ME3, BA or KL.

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ME3 is affected largely by the slow down in O&G industry.

So we have full circle in this discussion.

 

SQ is suffering not because of the ME3 as you argued earlier - this has been taking place for many years already. But in 2016, the main issue for premium airlines is that O&G companies have cut their business travel. So SQ and ME3 are all suffering together.

On AF and LH to KUL, the demand is smaller than BKK or SIN, aircraft sent was too big and many chose to travel with ME3, BA or KL.

Funny thing is that KL has ADDED three more B789 frequencies for AMS-KUL. So, do the Dutch travel more than the French and Germans?

 

I guess the B789's economics is better than AF's B77E and LH's A343....

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Funny thing is that KL has ADDED three more B789 frequencies for AMS-KUL. So, do the Dutch travel more than the French and Germans?

 

I guess the B789's economics is better than AF's B77E and LH's A343....

 

That (aircraft reason) and also KL has SPA and codeshare agreement with MH for beyond KUL traffic.

 

 

Do note that both Air France and Lufthansa failed to restore their flights to KUL, despite enjoying monopoly positions. That is how weak the market has become.

 

It's not that the market is weak, but rather the yields are weak especially with the free-falling MYR. There are business traffic from DE to MY, not high, but it exists. And they don't have the right plane for KUL. Both are old gas-guzzlers and LH doesn't have any connection agreements with MH beyond KUL, i.e. KUL is the end point for most LH pax (except for a few domestic destinations in MY).

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For foreign carriers, "free-falling MYR" should be a boon.

Maybe I don't know much about aviation management or economics, but please enlighten me how is this be a boon to foreign carriers?

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