Singapore Airlines plans wide-ranging cost cuts to offset stiff competition

 Friday, October 6, 2017 

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Singapore AirlinesSingapore Airlines is taking more than 50 cost-cutting initiatives including reducing fuel burn and reviewing its relationship with key suppliers as part of a three-year plan to make the airline more competitive in the international market.

 

 

Both Singapore Airlines and Hong Kong-based rival Cathay Pacific Airways Ltd all are under pressure due to rapid growing competition from Chinese and Middle Eastern rivals.

 

 

Both of the airlines lack domestic flight markets to help offset the international competition.

 

 

Singapore Airline has also set up a enthusiastic transformation office to review its strategy in May after a surprise fourth-quarter loss although it not released a cost-cutting target.

 

 

 

The CEO Goh Choon Phong said that the Singapore Airlines was working on 56 initiatives, which also include more the self-service options for international customers and reducing the in-flight food and beverage wastage.

 

 

 

Singapore Airlines has handed two of regional arm SilkAir’s routes to budget carrier Scoot, merged part of SilkAir’s finance team with its parent and offered unpaid leave to cabin crew.

 

 

 

CAPA Centre for Aviation Chief Analyst Brendan Sobie said Singapore Airlines should deem the more fundamental move of merging with the SilkAir with its parent.

 

 

 

Singapore Airlines has previously merged the budget arms Scoot and Tigerair Singapore and folded its cargo arm back into Singapore Airlines.

 

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