Singapore Airlines to cut routes

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Singapore-Airlines-Flight-AttendantsSingapore Airlines, reporting weaker-than-expected full-year results on May 16, warned of a deteriorating environment as it struggles to cope with the rapid emergence of Gulf carriers and low-cost Asian rivals.

The flagship carrier of the small city owned by the state’s sovereign wealth fund Temasek said it is now attempting a “big strategy overhaul” to revive growth, pushing into the low-cost segment and expanding its regional network.

However, the airline is stuck between state-backed Gulf airlines such as Emirates Airline, Etihad Airways and Qatar Airways, which are racing to become main carriers linking the Asia-Pacific region with Europe from their hubs in the Middle East, and rapidly growing discount carriers in East Asia.

It also faces stiffer competition from Southeast Asian rivals such as Malaysian Airlines and Garuda Indonesia , which have been introducing newer aircraft and adding more connections via Singapore.

AirAsia’s cut-rate pricing on Southeast Asian routes and the emergence of new rivals such as the Lion Air group has hit Singapore Airlines.

The carrier’s premium class travel, which makes up about 40 per cent of revenue, has been hit by cutbacks in corporate budgets. Profit had slumped nearly 70 per cent in its previous financial year and margins had narrowed, the airline reported.

Both Singapore Airlines and its subsidiary SilkAir are now cutting capacity due to weak markets, the company said, without giving details.

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Reading Time: 1 minute

Singapore Airlines, reporting weaker-than-expected full-year results on May 16, warned of a deteriorating environment as it struggles to cope with the rapid emergence of Gulf carriers and low-cost Asian rivals.

Reading Time: 1 minute

Singapore-Airlines-Flight-AttendantsSingapore Airlines, reporting weaker-than-expected full-year results on May 16, warned of a deteriorating environment as it struggles to cope with the rapid emergence of Gulf carriers and low-cost Asian rivals.

The flagship carrier of the small city owned by the state’s sovereign wealth fund Temasek said it is now attempting a “big strategy overhaul” to revive growth, pushing into the low-cost segment and expanding its regional network.

However, the airline is stuck between state-backed Gulf airlines such as Emirates Airline, Etihad Airways and Qatar Airways, which are racing to become main carriers linking the Asia-Pacific region with Europe from their hubs in the Middle East, and rapidly growing discount carriers in East Asia.

It also faces stiffer competition from Southeast Asian rivals such as Malaysian Airlines and Garuda Indonesia , which have been introducing newer aircraft and adding more connections via Singapore.

AirAsia’s cut-rate pricing on Southeast Asian routes and the emergence of new rivals such as the Lion Air group has hit Singapore Airlines.

The carrier’s premium class travel, which makes up about 40 per cent of revenue, has been hit by cutbacks in corporate budgets. Profit had slumped nearly 70 per cent in its previous financial year and margins had narrowed, the airline reported.

Both Singapore Airlines and its subsidiary SilkAir are now cutting capacity due to weak markets, the company said, without giving details.

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