Singapore Airlines Group faces critical decisions with regional strategy as 787-10s, 737 MAXs arrive

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The Singapore Airlines (SIA) Group has an opportunity to adjust its strategy and reposition its product at the full service end of the regional market as it renews its short/medium haul fleet. Intensifying competition within Asia Pacific and product improvements by rivals dictate a new approach for SIA.

SilkAir has started taking delivery of new 737 MAX 8 aircraft, providing an opportunity to deploy highly efficient new generation narrowbody aircraft on longer medium haul routes - both new routes and those now served with SIA's all-widebody fleet. SilkAir has so far elected only to pursue modest upgrades of its inflight product with the 737 MAX, but will likely consider more significant upgrades and a rebranding or merger with the parent airline as part of an overall SIA Group review.

SilkAir could potentially offer lie-flat business class seats on a new sub-fleet and use the same product SIA will be introducing in 2018 on its new fleet of 787-10s. SIA is planning a significant improvement to its regional premium product as the new two class 787-10s replace two class A330-300s and older model 777s on short/medium haul routes.

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