Singapore Airlines

If JY Pillay is so great, I suppose Tiger Airways should be be flying high now...? he is now the chairman of Tiger since late 2011...

(01-04-2013, 07:49 PM)specuvestor Wrote: I feel strongly that SIA had been squandering the moat it built up on its past successes,

Hi Specuvestor

I'm just curious. What do you think SIA should have done?

Thanks.

P.S. I have not been and does not intend to invest in any airline.

(02-04-2013, 08:04 AM)HitandRun Wrote:

(01-04-2013, 07:49 PM)specuvestor Wrote: I feel strongly that SIA had been squandering the moat it built up on its past successes,

Hi Specuvestor

I'm just curious. What do you think SIA should have done?

Thanks.

P.S. I have not been and does not intend to invest in any airline.

Some of you may have read this somewhere:

Richard Branson was asked how to become a millionaire. His replied that there is really nothing to it, just start as billionaire and invest in airlines, we will then become a millionaire in no time. Good luck to those who own SIA share.

(01-04-2013, 11:16 PM)touzi Wrote:

(01-04-2013, 07:49 PM)specuvestor Wrote: I feel strongly that SIA had been squandering the moat it built up on its past successes, and recent foray into Tiger and Scoot shows that management is getting clueless how to run an airline. The moat will eventually disappear for SIA if they continue to get clueless scholars and military men to run the company.

How do Tiger and Scoot show that management is clueless how to run an airline?

By the way current CEO has joined the company in 1990. He is unlikely to be a "military man", and even if he was, after more than 20 years he must have been converted to civilian many times over.

I am sure there are some ex Military man among the senior staff of SIA, but that does not mean SIA is totally run by them. Scoot is run by a New Zealander, and the previous Tiger fellow who screwed up big time in Australia is also an ang mo. Moreover if you look at the Board of SIA, there isn't a single Scholar or Military man.

(02-04-2013, 08:04 AM)HitandRun Wrote:

(01-04-2013, 07:49 PM)specuvestor Wrote: I feel strongly that SIA had been squandering the moat it built up on its past successes,

Hi Specuvestor

I'm just curious. What do you think SIA should have done?

Thanks.

P.S. I have not been and does not intend to invest in any airline.

Touzi your points are not invalid. The current CEO Goh took over in Jan 2011. Yes I was referring to the ex CEO Chew who was appointed in June 2003, whom people in the company will tell you he is very focused on bottomline rather than long term competitiveness. But let's look at the competitive environment:

1) SIA pride on giving premium service. Used to be "Singapore Girl, you're a great way to fly". Now it doesn't seem to be the case even when the economy class is still much more expensive than the other airlines. There are many other airlines that are catching up on service quality. I'm not even sure what the marketing slogan is now? First to fly the A380? Focus is on hardware?? Positioning is lost with competition on quality, and competition on price by LLC.

2) Tries to compete on LCC with Tiger. Despite having the parentage and likely cost savings with the parent on aircraft costs and maintenance, I sense that AirAsia is doing much better. Ask those who take LCC frequently.

3) I'm not even sure how Scoot fit between SIA and Tiger. The company is either focusing on price or trying to have a hand in everything. At least I can see the niche in SilkAir. Operationally Scoot was off to a bad start.

So after all the critique, what should SIA done? I think our core strength is efficiency and quality, not price. LKY is very concerned about SIA because SIA & Changi Airport is a huge part of our labour force as well as our tourism and hence GDP. There is strategic value in them, and not just another regional airport like how large countries treat their airports. I think if SIA can go back to the roots of efficiency and quality, I actually think people don't mind paying a premium. (And that is the value proposition on why Singapore is a tourist hub and stopping point for regional travels... I don't think they actually come to Singapore for sight-seeing ) I actually think safe landing and pleasant trip to the destination has a lot of value, without threat of terrorism, mechanical failure, pilot mistakes, or huge stewardess bumping into you In other words, I think the core value and value proposition of SIA is eroding.

Used to be that if you need to buy an airline in Asia it got to be SIA. Now I'm not so sure.

Quote:3) I'm not even sure how Scoot fit between SIA and Tiger. The company is either focusing on price or trying to have a hand in everything. At least I can see the niche in SilkAir. Operationally Scoot was off to a bad start.

I think if SIA was supposed to be premium long-haul, SilkAir premium short-haul and Tiger low-cost short-haul, then Scoot is aiming to be low-cost long-haul (LCLH); fitting all the squares in a standard 2X2 matrix.

History is replete with examples of start-ups trying the LCLH route and failing. Seems like Scoot is the latest to give it a go, although to be fair to past failures, which includes Air Asia, Scoot's long-haul is not really that long. A six-hour flight to Tianjin is roughly the same as a flight from New York to California in terms of flight time, which would be classified as short-haul in the US.

yes the academic matrix But consumers have shown that they are struggling to see the difference between LCC and LCLH simply because it gets pretty uncomfortable over longer trips, and the value proposition diminishes rapidly while cognitive dissonance multiplies ie I'm stupid to spend extra in a LCC but I am getting thirsty and hungry and bored and legs cramped

The fact is this industry is facing a competitive market that focuses on cost, safety and market pricing. SIA is focusing on features and innovation. LCC is focusing on minimising cost and bringing air travel to the mass. This is similar to what drove FORD's early success.

My colleague commented that SIA's stewardess is not pretty and young. Well, the SIA girl marketing team probably needs to chat more with the recruitment team.

(03-04-2013, 01:11 PM)a74henry Wrote: My colleague commented that SIA's stewardess is not pretty and young. Well, the SIA girl marketing team probably needs to chat more with the recruitment team.

Interestingly enough, this is in today's ST.

Singapore Girl gets a makeover
Body-hugging kebaya stays while bright blue eyeshadow is toned down

THE Singapore Girl has junked her bright blue eyeshadow for a more subtle and modern look.

She is still immaculate in her body-hugging signature kebaya with her hair nicely done, but the colours on her face are less striking.

In her first major makeover in more than a decade, the iconic Singapore Airlines (SIA) Girl is sticking to blue, green, plum and brown eye make-up, and red lipstick to complement the colours of her kebaya.

But the tones and shades are more subtle than before and trendier, said the airline's head of cabin crew, Mr Marvin Tan. "When we embarked on this project with our long-time grooming partner Lancome, we took into account feedback from some customers that the previous colours seemed to be on the strong side," he told The Straits Times last week.

There is also a new crew lounge at SIA's control centre at Changi Airport Terminal 3 for last-minute touch-ups before a flight.

To fly high in a tough business, SIA has invested in both hardware and heartware.

Last August, for example, it announced plans for a major cabin, seat and in-flight entertainment overhaul. The new products will be rolled out on new planes from the second half of this year.

Good service is equally important, said Mr Tan. "If you ask people what is the first thing that comes to mind when they think of SIA, the answer is usually our cabin crew. The kebaya comes to mind, the service culture comes to mind," he said.

SIA, which runs one of the longest cabin crew training programmes in the industry at 15 weeks, will stay focused on what it needs to do, said Mr Tan.

On comments made by some travellers that service levels have slipped and are inconsistent, he said: "This is a challenge for any organisation that continues to grow and we will keep working at this."

It is also important to drive bonding and camaraderie among an increasingly diverse pool of crew members, he added.

For full article, click here.

The smile, the service levels and the recruitment has to gel with the advertisement that we see.

My friends say that an average looking girl can become beautiful with the right make up. I disagree that SIA limit the make up to a certain tone and in a certain way. Considering the diverse pool of crew members, I recommend that SIA consider having the make up artiste recommend the colour and tone that will bring out the beauty in each of our SIA girls. Embrace diversity not rigid policies.

(Not vested)

a lot of ppls i know, if biz trip, pay by co. fly SIA..
if personal trip, pay theirselves, fly airasia!



besides efficiency and safety, think the biz model of airline co.s is to have strategic tie-ups in the international air routes.
Partnerships.