India, China growth drivers for Singapore Airlines

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.

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