SilkAir's Expansion Plans Nov 2012

[9V-SIA]

Interesting interview with SilkAir CEO Leslie Thng in TODAY newspaper.

Operating profit margin for MI was 14% compared to 2% for SQ ( for last financial year ). May have to settle for high single-digit profit margins in the future

Load factor up from 74.2% to 74.4%

It will remain a full-service airline to differentiate itself from LCCs ( helps them cross-sell to SQ PAXs too )

What's exciting for me is their "plans" for the 54 Boeing 738s they've ordered

They plan to have an all Boeing fleet eventually

Max8 will allow flights of up to 6.5 hours, allowing MI to cover the whole of China & India. Also looking at other Australian cities ( Cairns mentioned )

The longer flights mean that they are looking at IFE

The whole article:

http://www.todayonline.com/Business/...-as-it-expands

[SilverChris]

The question remains: Will they ever join *A ?!

[9V-SIA]

The question remains: Will they ever join *A ?!

I know! Feels kinda strange having to post this on SQTalk under Other Airlines

[CarbonMan]

Am obviously missing something here. Question: what's in it for KF members to have MI part of *A?

In my mind, keeping MI out of *A may reduce competition for redemption seats by excluding other *A members. And KF members already earn miles from MI flights which can be used on *A flights. So it's a great plus-plus. So unless you're a *A member ....

[Kyo]

SQ wants to keep MI as its ace up its sleeve imo. A mini-hedge to do whatever it wants against *A's wishes. More power to them, less power to the consumer.

[concept|infinit]

SQ wants to keep MI as its ace up its sleeve imo. A mini-hedge to do whatever it wants against *A's wishes. More power to them, less power to the consumer.

Ah okay. That makes a lot of sense.
Like Carbonman pointed out too, I guess it adds more perks and options for KF members, an edge over other *A programs

[sqdazz]

I avoid them whilst they are not in Star. simple as that

[milehighj]

I avoid them whilst they are not in Star. simple as that

But chances are that if you needed to fly an MI sector/destination, you'd have few equivalent options, let alone options on *A.

[sqdazz]

But chances are that if you needed to fly an MI sector/destination, you'd have few equivalent options, let alone options on *A.

hmm well if it's somewhere TG flies I use them e.g. penang, phuket, chiang mai. I actually don't have much need to fly to their other destinations. Hopefully Thai Smile will have many of them covered in coming years and still on TG flight numbers with Star Alliance benefits.

[Kyo]

For the most part, I'm in the same situation as you, sqdazz - but for me my annual/bi-annual SIN-PEN doesn't make sense via BKK on a revenue fare. MI does make sense on some hops, even for me, even though I hate that it's not part of SQ. The consumer just doesn't have much choice and that's what MI banks on.

As disappointing as it is, I'm banking with KF for awhile... the credit card points *just* makes the proposition worthwhile.

[sqdazz]

For the most part, I'm in the same situation as you, sqdazz - but for me my annual/bi-annual SIN-PEN doesn't make sense via BKK on a revenue fare. MI does make sense on some hops, even for me, even though I hate that it's not part of SQ. The consumer just doesn't have much choice and that's what MI banks on.

As disappointing as it is, I'm banking with KF for awhile... the credit card points *just* makes the proposition worthwhile.

Id go with jetstar on shorthaul routes ex sin, particularly when the qf lounge is open as i have access with my QF gold

[milehighj]

hmm well if it's somewhere TG flies I use them e.g. penang, phuket, chiang mai. I actually don't have much need to fly to their other destinations. Hopefully Thai Smile will have many of them covered in coming years and still on TG flight numbers with Star Alliance benefits.

Quite true for these TG destinations.

Though in the original context of this thread - MI's route expansion - I was thinking of current and future 2nd-tier destinations in SE Asia, India and China.

[Kyo]

I heard mention of Haiphong being a considered as an MI destination but I think the government has no motivation to change that domestic airport into an international one. That city needs jobs bad... and it's got proximity to a heavy tourism destination, as well as being Vietnam's major shipping hub, hence business travel. Would make my life a lot easier also... simply can't be arsed driving from Hanoi for 2.5 hrs on those lousy roads more than I can help it, which forces me to connect via SGN.