Singapore Airlines’ 2017 outlook analysed

SIA reinforces premium position, introduces long-haul products
Tough competition and overcapacity continue to plague Singapore Airlines in 2017, CAPA reports. But it is gradually responding to pressures by reinforcing its premium position and introducing new long-haul products while growing its low-cost subsidiaries.
In recent years, SIA’s position in the long-haul market has been hit by fast expansion and aggressive pricing by Gulf and North Asian airlines. The short-term outlook is relatively bleak but the group is making structural changes.
It is implementing a new long-term strategy, CAPA says, “including a much bigger role in the faster-growing budget end of the market, to prepare the group better for the new reality” of low-cost growth in Asia. However, it will be a few years before it is able to fully implement this new strategy.
In Europe, while SIA has expanded its network, “the gains are more than offset by the reduction in average seat count caused by premium economy and the down-gauging of some existing long-haul routes to smaller widebody aircraft.”
CAPA adds: “As Dusseldorf is only served with three weekly flights, and Stockholm will be served only as a tag to Moscow, the impact of these new routes on ASKs is relatively modest. The suspension of São Paulo has had a bigger impact on overall ASKs.”
Long-haul strategy is focused on improving profitability in a difficult environment, CAPA continues, and SIA intends to roll out its new premium economy product in 2017 while unveiling a new business and first-class long-haul product. The article can be read in full here.

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