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Singapore Airlines Capital Express Part 1: Canberra, Wellington Airport outlook boosted by new route

Analysis

Singapore Airlines (SIA) is pursuing further expansion to Australasia as it launches services to Canberra and Wellington in Sep-2016. The new four times per week Singapore-Canberra-Wellington route is a bold step for a traditionally conservative SIA, as it provides Canberra with its first two international destinations and Wellington with its first Asian airline.

SIA will account for approximately 5% of capacity into Canberra, resulting in a new phase of growth as passengers who now travel internationally via Sydney - by driving or taking a short flight - will be able to fly directly to New Zealand or Singapore and beyond. The impact on passenger traffic at Wellington will be smaller but provides an important test case, as Wellington ponders a runway extension that would enable non-stop flights to Singapore and potentially other Asian destinations.

This is the first instalment in a series of reports on SIA's new Singapore-Canberra-Wellington "Capital Express" route. This part will focus on the impact on Canberra and Wellington airports, while the second part will focus on the impact on SIA and its two partners from the region, Virgin Australia and Air New Zealand.

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