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Singapore Airlines reduces focus on US market as non-stop flights are dropped

Analysis

Singapore Airlines (SIA) will have to again rely entirely on one-stop flights to serve the US market after its exclusive all-premium non-stops to Los Angeles and Newark are dropped over the next two months. The carrier will lose a competitive advantage, leaving it to compete with a large group of carriers that also offer one-stop products in the Singapore-Los Angeles and Singapore-New York markets.

SIA's total capacity in the US market will drop by a projected 16% to about 22,000 weekly seats. As a result SIA stands to lose its status as the fifth largest Asian carrier in the US and drop four places to ninth position.

More significantly, the number of premium seats SIA has in the US market will drop by at least 26%. Economy seats will drop by up to 12% as SIA is expected to mitigate the premium reduction by transitioning its one-stop New York and Los Angeles services from 471-seat A380s to 409-seat A380s.

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