Singapore Airlines to invest $11.6 billion

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Singapore AirlinesAs airspace gets crowded in booming ASEAN, national carriers struggle to maintain their footprint on the market. Singapore Airlines has now announced that it will step up its capital expenditure by 67 per cent over the next five years as it battles for market share in the skies.

The city-state’s flagship airline said it plans to buy new planes and improve its cabins by investing $11.6 billion over the period, compared with $6.96 billion in the previous five years.

Singapore Airlines’ CEO Goh Choon Phong said in the company’s monthly magazine that the carrier needs to find “new ways to conduct business in the current challenging operating environment” and “venture outside its comfort zone”.

The airline will buy new planes to rejuvenate its fleet and invest into products such as flat beds and new entertainment systems to stay ahead of its main rivals, Australia’s Qantas Airways and Hong Kong’s Cathay Pacific, which all have to cope with lower demand for first-class and business-class seats on long-haul flights as US and European companies cut staff and travel budgets, as well as with rising fuel costs and competition in the short and medium-haul segment from discount carriers.

Singapore Airlines carried around 18 million passengers in 2012, up from 16.9 million in 2011.

 

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Reading Time: 1 minute

As airspace gets crowded in booming ASEAN, national carriers struggle to maintain their footprint on the market. Singapore Airlines has now announced that it will step up its capital expenditure by 67 per cent over the next five years as it battles for market share in the skies.

Reading Time: 1 minute

Singapore AirlinesAs airspace gets crowded in booming ASEAN, national carriers struggle to maintain their footprint on the market. Singapore Airlines has now announced that it will step up its capital expenditure by 67 per cent over the next five years as it battles for market share in the skies.

The city-state’s flagship airline said it plans to buy new planes and improve its cabins by investing $11.6 billion over the period, compared with $6.96 billion in the previous five years.

Singapore Airlines’ CEO Goh Choon Phong said in the company’s monthly magazine that the carrier needs to find “new ways to conduct business in the current challenging operating environment” and “venture outside its comfort zone”.

The airline will buy new planes to rejuvenate its fleet and invest into products such as flat beds and new entertainment systems to stay ahead of its main rivals, Australia’s Qantas Airways and Hong Kong’s Cathay Pacific, which all have to cope with lower demand for first-class and business-class seats on long-haul flights as US and European companies cut staff and travel budgets, as well as with rising fuel costs and competition in the short and medium-haul segment from discount carriers.

Singapore Airlines carried around 18 million passengers in 2012, up from 16.9 million in 2011.

 

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