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

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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