26 May 2011

SIA To Mount Counter Offensive - Launch Long haul LCC

As the short haul LCC marketplace matures - we are not seeing many new airlines start up. But the long haul LCC market continues to baffle many.

This week I flew on Air Asia X. It was an interesting experience. The flight was from KL to Mumbai. The price was right for the nearly 6 hour flight. Although for a longer haul flight I would not really have been as willing to consider the differential in pricing as the only factor.

Long Haul low cost is a delicate beast. Air Asia seems to be making a good go of it. Watching the various flights leave on an average morning the A330s and A340s head out along with the myriad of the A320s in the sister companies.

Clearly this has Singapore worried. SQ faces threats on many fronts. While its profits continue to be stellar the loss of share particularly to the GCC based carriers must be hurting. Its shared investment in fellow Temasek company Tiger must be a cause for some merriment. Long term however the challenges facing SQ are significant enough that the company must do something.

So here is the first (of possibly many) salvo, from UK's Flight Global.

Just don't expect to see many A380s packing them in...


1 comment:

Claudio said...

Hi Professor,
It's Temasek, not Tamesek...