Would it be profitable for Singapore Airlines to upgrade their PER to SIN service with an a380?

4 replies

GgFlyer

Qantas - Qantas Frequent Flyer

Member since 30 Mar 2015

Total posts 41

Would it be profitable for Singapore Airlines to upgrade their PER to SIN service with an a380?

I highly doubt they will, but they already have 4x daily services on a mixture of 777s and a330s so would it be profitable if they reduced it to 2x daily services but one flight on an a380?

TheRealBabushka

Member since 21 Apr 2012

Total posts 2,059

No it would not be profitable.

The loads on SIN/PER is not fantastic. To sacrifice frequency for a perceived better quality hard product on a 5h flight is irrational.

Further, the actual difference in the hard product for most of the cabin (Y cabin) is immaterial, given that they are essentially the same. Would a Business Class pax suffer from not being 180 degrees horizontal for 5 hours whilst trying to gulp down champagne and celebrity cuisine (and perhaps even doing some work!)? I think not.

Therefore, a change to 2 x A380 service would in all likelihood result in fewer bookings from people who wish for flexiblity, potential loss of revenue for forward traffic (lower frequency = poorer forward connections) and potentially lower profits.

devilish

Member since 06 Jan 2015

Total posts 23

Everything above you have said is correct except the load factor (from my personal experience). Not sure what official sources say but everytime I fly Per/SIN the loads are always >80%. Even their 2am service is busy as many passengers use it to connect to europe.

brinkers

Qantas - Qantas Frequent Flyer

Member since 16 Jun 2011

Total posts 226

While it may be profitable on a standalone basis, they can more productively use their A380s elsewhere. At a network level, it is about best depolying your assets overall, not just about one route!

johnaboxall

Virgin Australia - Velocity Rewards

Member since 24 Aug 2011

Total posts 384

Customers will endure a lesser-quality product for a shorter flight, so SQ can own PER with an increased frequency using 777s. 

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