Singapore Airlines (SIA) is continuing to downsize amid a decline in business following the US terrorist attacks, deferring aircraft deliveries, dropping plans for in-flight e-mail and making other operational cuts.
The carrier announced the cuts early in November, soon after reporting that group net profit was down by 88% for the first half to 30 September. SIA warned in reporting its earnings that it could post a full-year loss, which would be the first since its establishment.
Its latest round of network cuts include the suspension of recently launched Singapore-Amsterdam-Chicago services, between 13 January and the end of April. SIA will also reduce Singapore-Frankfurt-New York services during the period, while in late October it reduced Singapore-Amsterdam-Newark services.
SIA will also reduce transpacific services from 13 January, cutting frequencies on Singapore-Taipei-Los Angeles and Singapore-Seoul-San Francisco flights. Together with transatlantic cuts, the carrier's combined seat capacity to the USA will be reduced by around 20%.
Japan services will also be reduced by 13% in terms of seat capacity, while Taipei services have been pared back. Perth services will be reduced between 3 January 2002 and 30 March 2003.
In September SIA suspended services to Karachi and Lahore in Pakistan, and reduced frequencies on five other routes. It later suspended services to Kota Kinabalu and Kuching in Malaysia, as well as to Macau.
It has deferred first delivery of ultra-long-haul Airbus A340-500s by nine months to October 2002 and is known to be in talks to defer Boeing aircraft, most likely 747-400 freighters. n
Management have already taken pay cuts of 7-15%, while other employees were expected to accept pay cuts of 5-7%. Plans to introduce Tenzing's in-flight e-mail and web offering, announced with much fanfare in April, have also been put on hold.
Source: Airline Business
