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Friday, 4 November 2016

SIA's Q2 profit plunges to S$64.9m from S$213.6m in Q2 FY15/16

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8 comments:

Bad economy said...

Hardly surprising!

Better close substitutes.

Anonymous said...

SQ management is very inflexible & refused to change in response to market situation, a good example : Bangkok & Bali. South East Asia destination, bulk of the tourist only decide their intention of travel at a very last minute, as some people were given a few days off where is not likely to travel long haul, when you check the fare to Bangkok, you can be easily quoted $624.00 inclusive of taxes & surcharges, and if you reserved your air seat 60 days or more prior to departure, the fare can be as cheap as $238, such a huge different, that trigger off many people switch their flight to Thai Airways, TG on the other hand, you can even buy the cheapest ticket 2 to 3 days prior departure at just $248 booked under economy saver-W class, me & my family took a different flight on the same day, surprisingly SQ974 & TG404 depart at almost the same timing, SQ flight is less then 80 passengers on a B777-200, while TG B777-300 has nearly 250 passengers, both carrier are serving lunch & allowed 30kg checked in luggage, so what is the big deal of SQ for selling their airfare at that sort of cutting throat price?
If SQ kept sticking on to their rigid policies in determine their pricing, they will eventually lost out to many regional & ME carrier, flying a plane with half load is just to stick to their policy, is ultimately not workable!

Anonymous said...

Their best hope is still enticing 1st and Biz passengers because the ones flying Economy will go for something cheaper like AK or MH.

Anonymous said...

'This airline very easy to manage.
Cut costs
Sack employees ( excludes executives, managers, VP)

So easy... profit?.. all from savings.

Anonymous said...

Good ideas. Let Executive serve cabin,Manager use lip service, passenger help themselves ?Another Monty Python Air ?

Mike Lim said...

Dear Mr. Luke,

I hope SIA thinks clearly about how they choose their staffs now because $100M/annum seems like an extremely large amount to spend just on staff training when the quarterly profit is so small.

Today is Emirates recruitment event in Singapore. Sent a friend to the interview and she saw a large group of her SIA CC colleagues, all just completed their 2 year compulsory bond. Retention is still a big problem.

SIA Group seems to have acknowledged that their business model is flawed having such clear distinction between the service lines just doesn't seem to work in the long run:
-Long Haul-Full Service = SIA
-Short Haul-Full Service = Silkair
-Long Haul-Budget = Scoot
-Short Haul-Budget = Tigerair

They are finally merging Tigerair into Scoot removing the former's name.

With the aviation industry's rising competition, even Airasia has been mulling the idea of either staying in Budget line or move into Full Service line, but not both. With so many airlines around, without a clear strategy to compete and excel in one line, the airlines might not be able to survive.

Have a nice weekend.

Best wishes,
Mike

Anonymous said...

6 years flying senior says:

The coy has already lost it already.
no new ideas to compete apart from sucking from within.
The AMs and CCEs deadwoods in office come on board love to find fault with crew.
Seems like crew hairstyle or male crew white hair to them is upmost importance compare to how to move the coy foward as a team lol....
like that of course peanut profits la..
just do your fair share and come back safely is enough.
Not as if you do more or profit increase , they will share more with you or say you good lol..

Try Emirates said...

SiA's management must find out why this is happening.Study the exit interview.EK is not without their weaknesses.