Air Transport World

Singapore Airlines.(Asia/Pacific)(Brief Article)

Facing some of its greatest challenges since its formation in 1972, SIA saw FY04 profit drop 43% on the previous year largely due to SARS and the Iraq conflict.

Emirates and its hub at Dubai, plus the explosion of LCCs in Singapore, are major hurdles for management as well. SIA has prospered on the back of Singapore's hub status and the airline's superb inflight product and huge premium-class traffic, but management is warning staff that it may need to cut up to 20% from costs to compete with LCCs. SIA has launched its own LCC, Tiger Airways, but in an extraordinary twist its 57% owner, Temasek Holdings Ltd., the investment arm of the Singapore government, is a large investor in Qantas's Jetstar Asia LCC, which will be based in Singapore. …

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