Singapore Airlines has vowed to invest in all segments of the business – from premium to budget – to cushion itself against a slowdown in any one sector, said chief executive Goh Choon Phong.
This would strengthen the group against rivals at both ends of the market, he said during his biannual post-results session with journalists and analysts.
Last Friday, SIA announced that second-quarter net profits had slumped 54% from the same period last year.
SIA attributed most of its fall in group net profit to lower non-operating items after the parent airline company last year benefited from the disposal of aircraft and spare engines
Singapore Airlines and SilkAir reported improvements in operating profits.
The parent airline’s operating figure rose from SGD53m a year ago to SGD169m in the latest first half, while full-service offshoot SilkAir’s rose from SGD34m to SGD37m.
Meanwhile, Qantas has taken aim at Singapore Airlines’ objections to its proposed alliance with Emirates.
Virgin Australia and partner Singapore Airlines want the proposed deal – should it be granted anti-trust approval – to be granted for only half the 10 years sought by Qantas and Emirates.
Qantas said it had unsuccessfully attempted over many years to form an alliance with Singapore Airlines, Cathay Pacific or Malaysia Airlines to improve its fortunes.
