Singapore Airlines Targets Premium Travel Market

Singapore Airlines Ltd will embark on a mission to revive profits that have been at a constant low for almost twenty years. The arrival of the new chief executive, GohChoonPhong in January will begin the signal these changes.

First class and business class passengers will be a large target market for GohChoonPhong when he takes over. Due to the previous recession in premium travel, Singapore Air ended up cutting business class and first class. However, with a new man set to takeover, big changes will begin to occur for the airline.

An analyst for UOB-Kay Hian Research located in Singapore, K. Ajith said: “The big question now is whether Singapore Air can still maintain their pricing power without losing out to rivals,”

“Competitors are getting new aircraft and the service quality at Middle Eastern carriers is also improving. The low-cost carriers are also expanding very quickly,” he added.

The company will reassess their focus on premium travel, with revenue from business and first class travel currently reaching 40%. The competition in the market will be tough, with rival airlines improving their fleets to focus their attentions on first and business class travel.