singapore airlines’ 44th agm overview of strategic initiatives...non-airline partners banks,...
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Singapore Airlines’ 44th AGMOverview of Strategic Initiatives
29 July 2016
Growth of Middle Eastern Airlines
Expansion of Low-Cost Carriers (LCCs)
STRUCTURAL CHANGE IN THE INDUSTRY
LCC PROLIFERATION
Southeast Asia has world’s highest LCC penetration rate
25%
23%
22%
22%
14%
9%
2%
2%
8%
43%
35%
28%
29%
21%
18%
11%
6%
8%
56%
39%
36%
31%
25%
21%
20%
10%
9%
0% 10% 20% 30% 40% 50% 60%
South East Asia
Europe
Latin America
North America
World
South West Pacific
Middle East
North Asia
Africa
LCC Capacity Share (%) of Total Seats 2005 2010 2015
Strengthening our Premium Positioning
Multi-Hub
Portfolio
New Business Opportunities
KEY STRATEGIES
PRODUCTS & SERVICES
STRENGTHENING OUR PREMIUM POSITIONING
Premium Economy and First/Business Class retrofits
SilverKrisLounges
IFEEnhance-ments
Customer Experience Management system
• Modern Fleet 2016 – Launch of A350-900 2017 – New cabin products (A380) 2018 – Re-launch of ultra-long-range flights to
NY and LA as A350-900ULR launch customer 2018 – New medium-haul cabin products on
A350 & B787-10
STRENGTHENING OUR PREMIUM POSITIONING
NETWORK • Strengthening Key Markets Growth of European and US footprint New Destinations
Dusseldorf Non-stop to San Francisco Canberra & Wellington
Expanding network & connectivity through partnerships
Strengthening our Premium Positioning
Multi-Hub
Portfolio
New Business Opportunities
KEY STRATEGIES
PORTFOLIO
Regional Long-Haul
FullService
LowCost
Posi
tioni
ng
Extend Market Reach
Markets
PRIVATISATION OF TIGER AIRWAYSDELISTING COMPLETED ON 11 MAY 2016
Network coordination
Operational and backroom
Commercial activities
Enables:
Seamless cooperation in all aspects of the business
Full synergies within the SIA Group
Strengthening of benefits to SIA Group Portfolio Strategy
New profit generation opportunities
Strengthening our Premium Positioning
Multi-Hub
Portfolio
New Business Opportunities
KEY STRATEGIES
New growth engines in large and expanding markets
Complements and strengthens Singapore hub through synergies
Taps into large and growing Indian market Complements SIA’s operations to the West
Strong budget travel market Avenue for Scoot to grow beyond the Singapore
hub
MULTI-HUB
Strengthening our Premium Positioning
Multi-Hub
Portfolio
New Business Opportunities
KEY STRATEGIES
Group AirlinesSQ/MIScoot
Tigerair(Earn/Burn
partners wefSep15)
Expand across customer segments
Expanding KrisFlyer
AirlinesSQ/MI
Airline Partners
Star AllianceOthers
KrisFlyer Airline PartnersStar Alliance
OthersVirgin Australia
Vistara(Conversion w VA + Earn/Burn w
VA/Vistara)
Expand geographically e.g. Australia, India
Non-Airline PartnersBanks, Hotels,
Supermarkets/Pharmacies, others (Close to 200 non-air partners)
Expand across categories
Non-Airline PartnersBanks,
Hotels etc.
NEW REVENUE & BUSINESS OPPORTUNITIES
Airbus Asia Training Centre
Inaugurated on 18 Apr 2016 at the Seletar Aerospace Park
22 customers have signed up for training courses
AATC has five full flight simulators for the A320, A330, A350 and A380 currently
Once fully functional, AATC will be able to accommodate more than 10,000 trainees a year
NEW REVENUE & BUSINESS OPPORTUNITIES
THANK YOU