Singapore Airlines Seeks to Boost Revenue, Cut Costs Amid Revamp
By Gaurav Raghuvanshi
SINGAPORE--Singapore Airlines Ltd. (C6L.SG) has launched efforts to cut costs and boost revenue in an ongoing revamp of the flag carrier's operations amid stiff competition from Chinese and Persian Gulf airlines.
Singapore Airlines has launched 56 initiatives that include investing in technology to enable greater self-service by passengers, reducing food wastage on flights and cut fuel burn, Goh Choon Phong, chief executive said in a message to staff seen by The Wall Street Journal.
The company is also conducting a review of its network and engaging with its suppliers to cut costs, among steps being coordinated by a 'Transformation Office' announced by the airline earlier this year.
Singapore Airlines has juggled its routes in recent months, including passing some leisure-dominated routes to its discount unit Scoot Pte. Its regional full-service wing SilkAir, which received its first Boeing Co. 737 Max jet this week, has announced new flights to Hiroshima in Japan, taking advantage of the enhanced range offered by the new aircraft.
Singapore Airlines, which reported a surprise decline in income in the April-to-June quarter, is due to announce a spruced-up passenger cabin product as it seeks to win back premium traffic. New aircraft, which include the latest generation Airbus and Boeing jets such as the A350 and Boeing 787 apart from replacement A380s, will be equipped with latest seats and inflight entertainment systems as the carrier seeks to maintain its premium image.
Mr. Goh in his message didn't give details of the expected cost savings and revenue enhancements from the initiatives. In the past, he hasn't ruled out staff cuts as part of the revamp.
Write to Gaurav Raghuvanshi at firstname.lastname@example.org
(END) Dow Jones Newswires
October 06, 2017 00:57 ET (04:57 GMT)Copyright (c) 2017 Dow Jones & Company, Inc.