Below is a news item in the local Singaporean press, Business Times, dated 19 May 2004. Apparently at a time when the whole world is expecting the local singapore airlines to order a handful of 7E7s, Airbus is trying its best to steal the show. Somehow I doubt the A332s suit the airline's needs, although I don't really mind seeing an A340-600 in the SQ livery!! But then i fear their preference is the 777-300ER...
Buy A330-200, A340-600, Airbus proposes to SIA
S'pore carrier needs to expand fleet to make up for last year's lost growth
By DONALD URQUHART
(SINGAPORE) Competitive threats from budget airlines, 6th freedom carriers and emerging air hubs in the region mean Singapore Airlines (SIA) must consolidate its core product and quickly kick-start its aircraft acquisition strategy, according to Airbus executives.
'Having lost a year of growth to the impact of Sars and war in Iraq, SIA recognises the need to grow in what has become a very dynamic market,' Airbus customer marketing director Cronan Enright told Shipping Times in an interview.
To counter the competitive threats Mr Enright said Airbus is proposing SIA purchase two aircraft models: the 250-seat A330-200 with a US$130 million list price for regional use and the US$180 million, 380-seat A340-600 for long haul routes to complement the A380 which will enter service with SIA in 2006.
A key driver of this rapidly changing environment is the liberalisation of the Asian air industry, which is bringing in new players, fueling growth of existing players and new air hubs, he said.
As one of the airlines most affected by Sars, SIA lost nearly a year of growth as it put expansion plans on hold and deferred aircraft orders in the devastating wake of the outbreak last year.
But a rapid rebound in air travel demand from late last year led the airline to recently request proposals from both Boeing and Airbus to expand its fleet.
'The market is changing,' said Airbus senior vice-president for customer affairs in Asia, Paul Kiteley, 'and it's changing very fast so you have to react to that. They haven't been ordering much for the last couple of years, consequently their proposal request is very timely.
'If they are going to keep their number one position they have to move sooner,' he said.
'The rules are changing and we are seeing the arrival of low cost airlines like their own Tiger Airways, but also Valuair and AirAsia,' added Mr Enright.
'The potential low cost competition in Asia is great and SIA have been proactive and got ahead of the competition by getting into that market themselves with Tiger Airways.'
Mr Enright cited the case of Qantas, which waited until their low cost competitor Virgin Blue had gobbled up 30 per cent market share before they launched their own low cost airline Jetstar.
But there are also other near term threats, he said.
These include Thai Airways with the new Bangkok airport opening in September 2005, growing competition from Cathay Pacific with the liberalisation of the Hong Kong/Australia market, which will double the capacity between the two destinations in the next 18 months and the threat from 6th freedom carriers like Emirates.
'They've reacted to the low fare threat with Tiger and now is the time to consolidate the core full-service operation in the region,' he said.
'SIA is the number one airline from Southeast Asia into China and India and I think they'd like to consolidate that position sooner rather than later by offering daily frequencies to more and more cities in China and India, the biggest growth markets in the region,' said Mr Enright.
Good news.. but I hope that they don't give up their beautiful B777's, I prefer them above a A332... But one thing I don't get: why more planes? Are all of them used now?
If you've ever paid several thousand bucks for a business class seat and been stuck in the middle row of a 777, you can understand the logic behind Singapore Airlines thinking. Personally, when I go on a trip, I look for flights that avoid the 777. It may be nice to look at, but when I pay for a premium seat, I don't expect to be stuck in the middle of a block of three.
On the same subject, I read an article from the Boeing propaganda section (otherwise known as The Teal Group - aviation consultants) that stated "If an airline doesn't have the 777, they're either not a global player or Lufthansa". I can only assume they forgot "small" local airlines like QANTAS when they made that statement. However, I beg to differ - I manage to fly globally without the 777 and the longer I can continue to do so, the better.
I'm sure that Airbus is in talks with SQ as is Boeing. I've heard from an other source that SQ might buy the B777-200LR with some B777-300ER and therefore remove the A345 of the fleet.
That's what I heard also Chris.
@surfcrazedscot, I think you are the only frequent flyer that doesn't like the triple 7. Everybody I talked to after a triple 7 flight was totally positive about the space, comfort and noise level. Strange that you say the opposite, maybe SIA needs to invest in better chairs!
Don't get me wrong!! I generally enjoy flying on an Airbus and consider myself as their fans.
However, for whatever reasons, I always have the impression that SQ can't love their 777s anymore.... Personally I also find the A345 replacement rumour very credible.
But then back to discussion on the A332s, the latest news come through that what SQ's been offered was a modified "lite" verison somehow comparable to the 7E7!!
Things really get interesting now, don't they?? 8)
