Singapore Airlines announced (24-Oct-2012) plans to order five additional A380 aircraft and 20 A350-900s which will be placed on the airline's long-haul and regional services. The order will see the airline's A380 fleet increase from 19 to 24. Singapore Airlines CEO Goh Choon Phong said, "This major order will provide us with additional growth opportunities and is consistent with our longstanding policy of maintaining a young and modern fleet. It demonstrates our commitment to the Singapore hub, and our confidence in the strength of the market for premium full-service travel. The aircraft will enable us to further enhance our network, providing more travel options to our customers. They will also feature the next generation of in-flight cabin products to keep us at the forefront of airline product innovation." The airline selected Rolls-Royce's Trent XWB and Trent 900 engines for the aircraft ordered, including long-term TotalCare service support. Singapore Airlines currently operates Trent 900 engines on its existing A380 fleet while its 19 Airbus A330s are powered by Trent 700 engines. Under the agreement Singapore Airlines will return its five A340-500 aircraft to Airbus by the end of 4Q2013. This will see the cancellation of the airline’s nonstop Singapore-Los Angeles and Singapore-New York Newark services. [more - original PR - Singapore Airlines] [more - original PR - Singapore Airlines II] [more - original PR - Rolls-Royce]
Singapore Airlines places order for A380s and A350s
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Southeast Asia-US airline market Part 2: at least 7 airlines to offer US nonstop services by 2021
The deployment of new generation ultra-long-range widebody aircraft is prompting several airlines to plan new nonstop services between Southeast Asia and the continental US. New variants of the A350 have particularly emerged as a new, more efficient and popular option for Southeast Asia-US flights, with orders over the past year from three Southeast Asian flag carriers.
On 5-Sep-2016 Vietnam Airlines became the latest Southeast Asian airline to commit to new generation ultra-long-range aircraft capable of new nonstop routes – joining Philippine Airlines and Singapore Airlines. Garuda Indonesia and Thai Airways are likely to follow, resulting in four Southeast Asian airlines operating nonstop flights to the US by early next decade, compared with only one currently.
Delta Air Lines may also join United Airlines with nonstop Southeast Asia-US services. There are opportunities in the Southeast Asia-US market for nonstop routes, but competition with one-stop products will be intense. Profitability will be heavily challenged or non-existent. SIA started the trend due to strategic, not financial, imperatives. Under the charm of low fuel prices, Southeast Asian airlines risk falling into the spell of "me too" nonstop flights, just as they did with over-sized aircraft acquisitions.
Scoot 2017 outlook: challenging market conditions and Europe launch could impact profitability
Singapore Airlines (SIA) medium long haul LCC subsidiary Scoot faces a potentially challenging 2017 as it launches flights to Europe and merges with the short haul LCC Tigerair. Scoot is also planning a series of network and schedule adjustments, which are critical to the future success of the European routes and long-term profitability.
Scoot has been successful in the initial four and a half years since its mid-2012 launch, becoming profitable in a relatively quick timeframe and unlocking a new phase of growth for the SIA Group. However, 2017 will bring intense competition and ambitious expansion in markets that are not likely to be profitable in the short to medium term.
Scoot’s newfound profitability could be at risk due to yield pressures, higher fuel costs and expenses related to new long haul route launches. Scoot and its ongoing integration with Tigerair are necessary strategically, and should improve the SIA Group’s long-term position, but the short-term outlook is relatively cloudy.