Unless the price of oil drops significantly I don't think they are that interested in operating the ULH's. I am not sure what the price of oil was when they originally ordered the A345's to do the nonstops, but I bet it was significantly less than what it is now.
The A345s were ordered in 1999. That year oil price was ............. <$25 The year it entered service, 2004, oil was still below $50...
The A345s were ordered in 1999. That year oil price was ............. <$25 The year it entered service, 2004, oil was still below $50...
If my memory serves me correctly, at launch a PY seat was about S$2K and J was S$5-6K (any institutional memories out there?).
1999 was the most horrendous year for oil producers, since the late 60's. As I recall, crude oil was around $15 depending on which crude oil one looked at. Only the middle-eastern countries were still in the black.
Looking at the current market, it is hard to even speculate that oil will go below US$80 any time soon; perhaps only an all-out global recession would push it all the way down. However, being a firm believer that history tends to repeat itself, I would never say that $20-dollar oil will never occur again.
Any rumor what SQ will do, after pulling A345 out next year
Million dollar question, Vincent0720. Immediately after SQ stops those flights, their profitability is expected to increase.
Here's my speculation: if loads continue to weaken, it'll be status quo; SQ will pack the current 380s going to JFK and LAX to try to push loads up. If loads however improve, then mount an additional 773 via another transit point to LAX and EWR. Those will be conservative decisions that SQ tends to make.
So until the economy improves, and oil prices drop (I can't think of a current scenario for both of these to occur at the same time), the days of non-stop SIN-USA are over until somebody builds a super efficient plane for SQ.
Million dollar question, Vincent0720. Immediately after SQ stops those flights, their profitability is expected to increase.
Here's my speculation: if loads continue to weaken, it'll be status quo; SQ will pack the current 380s going to JFK and LAX to try to push loads up. If loads however improve, then mount an additional 773 via another transit point to LAX and EWR. Those will be conservative decisions that SQ tends to make.
So until the economy improves, and oil prices drop (I can't think of a current scenario for both of these to occur at the same time), the days of non-stop SIN-USA are over until somebody builds a super efficient plane for SQ.
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