Singapore Airlines redefined

Singapore Airlines (SIA) CEO Goh Choon Phong is not optimistic about the second half of the year after reporting declined profits for the first half. The SIA Group posted a net profit of S$168 million (US$137 million) for the first half of FY 2012/13, down S$71 million or 30 per cent over the same period last year. It is worse – a decline of 54 per cent – for the second quarter. (See SIA reports falling profits, caught in crosswinds, Nov 5, 2012)

Mr Goh said: “We can expect that, going forward, the economy will continue to be very challenging or perhaps even more challenging than it is now, and we don’t see any reprieve in terms of improvement, especially from economies such as Europe.”

Once thriving on the crest of the premium market and turning its nose up at the budget carriers’ threat, SIA is shifting into a broad strategy of developing both its premium and low-cost businesses. While it may have entered late in the budget game, equally critical is the question as to whether it may at the same time diluted its focus on what has over the years made it the darling of premium travel.

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About David Leo
David Leo has more than 30 years of aviation experience, having served in senior management in one of the world's best airlines and airports. He continues to maintain a keen interest in the business, writes freelance and provides consultancy services in the field.

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