• Home
  • Reviews
    • Flight Reviews
    • Hotel Reviews
    • Lounge Reviews
    • Trip Reports
  • About
    • Press
  • Contact
  • Privacy
  • Award Expert
  • Advertising Disclosure
Live and Let's Fly
  • Home
  • Reviews
    • Flight Reviews
    • Hotel Reviews
    • Lounge Reviews
    • Trip Reports
  • About
    • Press
  • Contact
  • Privacy
  • Award Expert
  • Advertising Disclosure
Home  >  Singapore Airlines  >  Why Singapore Airlines Must Be Cautious About Cuts
Singapore Airlines

Why Singapore Airlines Must Be Cautious About Cuts

Matthew Klint Posted onJune 7, 2017June 7, 2017 4 Comments

Singapore Airlines reported a quarterly loss for the first time in five years. CEO Goh Choon Phong has warned that job cuts may be on the horizon. But if Singapore is not careful, it will find itself in an even worse situation.

I start with the following premise: carriers cannot cut their way to growth. Singapore faces intense pressure from regional low-cost rivals. Look at fares: you’ll pay a very hefty premium to fly on Singapore Airlines over much of the competition. Even some “legacy” competition like Malaysia Airlines offer far cheaper fares.

The result: Singapore is losing money. Its longhaul operations allegedly perform even worse than short-haul operations and the situation is not improving. If Singapore cannot profit in this era of cheap oil and a growing worldwide economy, will it ever?

Thus, I can appreciate why Singapore is mulling change. And I know human capital often seems the most expendable. While I do have a philosophical problem with a carrier slashing hundreds of jobs while the CEO makes 100X+ that of a front-line worker, I don’t doubt that CEO Goh is correct in stating that some jobs are becoming “irrelevant”. Changing technology and consumer demand naturally translates to change in personnel needs.

Trimming staffing is one thing, cutting onboard services is another. Singapore’s reputation is built on being a premium carrier. If the airline starts cutting the very things that distinguish it from the pack, not only will it lose the budget crowd, but the premium crowd too. If anything, Singapore must find ways to innovate the onboard product to attract even more premium customers.

CONCLUSION

It’s not just the “Singapore girls” that give Singapore Airlines its allure. It is a consistent and high-quality onboard product. I can only exhort Singapore not to be “penny wise, pound foolish” as it weighs how best to return to profitability. That includes staffing and service.

image: Singapore Airlines

Previous Article My Midyear Hyatt Dilemma
Next Article Review: British Airways 747-400 First Class London to New York

About Author

Matthew Klint

Matthew is an avid traveler who calls Los Angeles home. Each year he travels more than 200,000 miles by air and has visited more than 135 countries. Working both in the aviation industry and as a travel consultant, Matthew has been featured in major media outlets around the world and uses his Live and Let's Fly blog to share the latest news in the airline industry, commentary on frequent flyer programs, and detailed reports of his worldwide travel.

Related Posts

  • Singapore Airlines World Class Ad Campaign

    Singapore Airlines’ Defiant New Ad Campaign

    January 30, 2023
  • Toddler First Class

    Family Flaunts Toddler In First Class

    January 11, 2023
  • The Enigma Of The Singapore Airlines A380 At JFK

    November 23, 2022

4 Comments

  1. Cipta Reply
    June 7, 2017 at 2:33 pm

    Do you know SQ issued a krisflyer partnered with Indonesian bank of BCA instead of its own banking like DBS? However, the competition in asia is tough one…

  2. eponymous coward Reply
    June 7, 2017 at 3:37 pm

    The model of “we’ll be premium-heavy, and sell million dollar glasses of lemonade because we’ll only need to sell one glass” doesn’t work as well once you have LCCs sucking out your economy seating (and nobody has made all-premium configurations work long term outside of LON-NYC). Much of how the airline industry is priced is NOT priced efficiently (in the sense of market-clearing prices; granted that’s tough to do for an airline that has to “predict the future” when it comes to demand and not selling something for cheap today and losing out on money tomorrow). If the answer for SQ is to change how they price and service levels accordingly, that is what they have to do. Note that Tigerair, SilkAir and Scoot are doing better than SQ itself.

    PS: how many cash tickets have you bought on SQ for J/F? If the answer is “none”… I wonder if SQ can make money based on bloggers flying in their premium cabins on Chase MR mileage redemptions to KrisFlyer. 🙂

  3. Jason Reply
    June 7, 2017 at 5:25 pm

    Just flew back on SQ J, HK -SFO and the service was disappointingly mediocre. The head stewardess (in the red outfit) was surprisingly cold and indifferent (to everyone), she did not seem to care to interact with any of the passengers and rarely smiled. She looked bored and uninterested in her job. The other stewardesses all seemed rushed the entire flight and seemed to want to just get their task over with. It felt like I was being served by an American Airlines crew dressed as an SQ crew.
    I asked 2 of the stewardesses what they liked best about working with SQ and they both had to think about what to say. One said that what they liked best was being able to live in Singapore and the other one said they liked the currency conversion benefits by being paid in Singapore Dollars. Wow… their answers had nothing to do with SQ as a company. Employees who are not excited about their employer are less likely to perform at their best. I hope this is not an omen about the company.
    SQ has always been my gold standard for consistency in excellent service. I hope that what I experienced was just an anomaly.

  4. Joey Reply
    June 7, 2017 at 6:45 pm

    I wonder if SQ failed to take advantage of cheap oil prices due to hedges made earlier when oil prices were higher.

Leave a Reply

Cancel reply

Search

Recent Posts

  • United Airlines Cuts Los Angeles – Tokyo Narita Route Ahead Of Haneda Launch February 6, 2023
  • Navigating The Touts Of Petra, Jordan February 6, 2023
  • What Annoys Flight Attendants Most… February 6, 2023
  • Mövenpick Resort Petra Review
    Review: Mövenpick Resort Petra, Jordan February 6, 2023

Categories

Popular Posts

  • Spirit Airlines Captain Runs Out Of Cockpit After Woman Yells “I Hope Y’All Crash And Die!” January 17, 2023
  • Hotel Worker entered room
    Woman Demands $3,000 In Compensation After Hotel Worker Walked Into Her Room At Midnight January 24, 2023
  • United Airlines 2023 Status Extension
    United Airlines Quietly Extends MileagePlus Premier Status…Again January 14, 2023
  • United Airlines Polaris Meal Service: The Sad State Of Affairs January 27, 2023

Archives

February 2023
M T W T F S S
 12345
6789101112
13141516171819
20212223242526
2728  
« Jan    

As seen on:

live_and_lets_fly

The new United Polaris Lounge at Washington Dulles The new United Polaris Lounge at Washington Dulles is the most beautiful of all Polaris Lounges. Stay tuned for a detailed look and many more photos on the blog tomorrow. Well done @united.
@malaysiaairlines just announced it would retire i @malaysiaairlines just announced it would retire its A380 fleet. While not surprising, it is sad to see the growing list of carriers retiring this superjumbo jet. On Malaysia Airlines, I flew the #A380 once from Kuala Lumpur (KUL) to London (LHR) and had the entire first class cabin to myself (full review on the blog). It was a beautiful flight that I will always remember.
Welcome to @fly_bur @aveloair! I am so excited tha Welcome to @fly_bur @aveloair! I am so excited that a new carrier, Avelo, has launched, especially from an airport just 12 minutes from my home!
I greatly miss the @lufthansa #747-8 at @flylaxair I greatly miss the @lufthansa #747-8 at @flylaxairport. Hopefully this summer it will return.

.
.
.
.
#Lufthansa #FirstClass #747 #747-8 #StarAlliance #Miles #Points
I recently spent a weekend at the @ventanabigsur. I recently spent a weekend at the @ventanabigsur. This is not only a lovely, all-inclusive resort, but one of the best properties to use your @hyatt World of Hyatt points.
.
.
.
.
#Hyatt #BigSur #California #WorldofHyatt #CA-1 #Points #Hotels
In terms of a spacious first class product, the @E In terms of a spacious first class product, the @Emirates suite on a 777-300ER is hard to beat. My preference is Suite 2K.

.
.
.
.
#Emirates #777 #firstclass
Nearly five years ago, I took a “break” from I Nearly five years ago, I took a “break” from Instagram ahead of the birth of my first child. Goodness, how time flies. While I’ve enjoyed catching up on others over the years, now it is time for me to return to Instagram. In this first post, I highlight two joys in my life, my two children, whom I trust will grow up to be prolific travelers that circumnavigate the globe as ambassadors of love and respect.

.
.
.
.
.

#travel #airplanes #airlines #miles #points #familytravel #human #integrity #honor
United Airlines' new Polaris seat is a huge improv United Airlines' new Polaris seat is a huge improvement over UA's current business class seat. Check out my blog at liveandletsfly.com for 70+ photos of how @united is transforming its entire business class experience starting this December!
The perfect @flysas name tag for #Longyearben! The perfect @flysas name tag for #Longyearben!
Spotted four #polarbear outside of #longyearbyen - Spotted four #polarbear outside of #longyearbyen -- oh, and I love 40°F summer weather!
One of the best crews I have ever had the pleasure One of the best crews I have ever had the pleasure of flying with in all my years of flying. Thank you @flysas SK940 on 11 Aug 2016
Next stop ARN! But dear @flysas , next time if I a Next stop ARN! But dear @flysas , next time if I assign a window seat months in advance, don't move me to a center seat "for my convenience" with no way to get my original seat back... 😞
Ready for #PIA from #MAN to #JFK -- we will be rac Ready for #PIA from #MAN to #JFK -- we will be racing the #Delta flight to JFK at the gate next to us, which also departs at 12:45p. With @onemileatatime
Another room with a beautiful view... #hyattregenc Another room with a beautiful view... #hyattregencycasablanca #cassablanca #hyatt
Enjoying #shanghai with @onemileatatime from the i Enjoying #shanghai with @onemileatatime from the inside of the @grandhyatt_shanghai ... It is 40°C outside! 😓
From my front gate to my boarding gate in 15 minut From my front gate to my boarding gate in 15 minutes flat. I ❤️ #bur #burbankairport
@malaysiaairlines #747 out of retirement and in se @malaysiaairlines #747 out of retirement and in service at #kul -- beautiful livery!
View from my 61st floor room at the beautiful bran View from my 61st floor room at the beautiful brand new @parkhyattguangzhou -- look for a full review coming soon on the blog #hyatt #parkhyatt #guangzhou #parkhyattguangzhou
Will miss the @united #globalfirstlounge at #ord, Will miss the @united #globalfirstlounge at #ord, which closes tomorrow and the Queen of the Skies #747 which will be retired in 2018.
The colonial #architecture of #mumbai is stunning. The colonial #architecture of #mumbai is stunning. If you're ever here, get up at 5am and have a walk around the city before it gets busy. You can hear the birds instead of honking horns.
Load More... Follow on Instagram
facebook twitter instagram rss

This site is for entertainment purposes only. The owner of this site is not an investment advisor, financial planner, nor legal or tax professional and articles here are of an opinion and general nature and should not be relied upon for individual circumstances.

 

Advertiser Disclosure: Some links to credit cards and other products on this website will earn an affiliate commission. Outside of banner ads published through the Boarding Area network, this compensation does not impact how and where products appear on this site. While we do try to list all the best miles and points deals, the site does not include all card companies or credit card offers available in the marketplace. Please view our advertising policy page for additional details about our partners.

 

Editorial Disclosure: The editorial content on this page is not provided by any entity mentioned herein. Opinions expressed here are the author's alone, and have not been reviewed, approved or otherwise endorsed by any of these entities.