AVIATION: Seeking Greater Heights
As competition heats up in the aviation industry, Nicholas Ionides, divisional vice president of public affairs at Singapore Airlines Group, tells Karen Tee about the company’s multipronged transformation strategy
Singapore Airlines Group is countering rising competition with a multipronged transformation strategy and ambitions to turn Singapore’s flag carrier into the world’s leading digital airline, says divisional vice president of public affairs, Nicholas Ionides
Singapore’s flagship carrier had a big year in 2018. Globetrotters welcomed the return of the world’s longest commercial flight when Singapore Airlines (SIA) relaunched its non-stop flight between Singapore and New York. It also relaunched its non-stop service between Singapore and Los Angeles, added new planes to its fleet, and launched Krispay, the world’s first blockchain-based airline digital wallet. Meanwhile, consistent performance across service and product design earned the brand the accolade of the world’s best airline in Skytrax’s 2018 World Airline Awards, a coveted title that SIA last held in 2008. It is also the only airline listed in Time magazine’s 2018 list of 50 Genius Companies. Later this year, it will launch a non-stop Singapore-seattle flight. There is more to come, says Nicholas Ionides, divisional vice president of public affairs at Singapore Airlines Group. The company is currently mid-way through a three-year transformation programme. “This covers new revenue-generation programmes, operational improvements and enhanced organisational structure. It is essentially a comprehensive review of everything we are doing, leaving no stones unturned, so we can better position ourselves for the future.”
As the skies get increasingly crowded with increased flight routes and more competition, what are the main challenges that airlines are facing?
Headwinds continue to persist in the form of cost pressures arising from significantly elevated fuel prices as compared to a year ago, as well as keen competition in key operating markets. From a wider perspective, in recent years, there has been significant structural change in the industry in our part of the world, such as the growth of full-service airlines and expansion of low-cost carriers. Southeast Asia is now the world’s most competitive market for low-cost carriers, with around 52 per cent market share in terms of capacity within the region.
What is SIA’S strategy in this competitive environment?
We have launched several routes, such as non-stop flights to New York and Los Angeles using the world’s first Airbus A350-900ULRS. We also became the first operator of the Boeing 787-10 earlier this year, and introduced new cabin products for regional routes, as well as for our Airbus A380 fleet. In addition, we have been enhancing our food and beverage offerings, and upgrading our lounges around the world. We announced a significant investment in Silkair, which will include new lie-flat seats in Business Class and new in-flight entertainment systems in both Business and Economy Class. Following the upgrades, Silkair will be merged into SIA.
“One significant investment has been an in-house Digital Innovation Lab to enable our people to work with innovative companies”
How does the SIA Group’s investment in low-cost airline operations and airlines overseas ensure it remains competitive and relevant?
We have interests in both full-service (SIA and Silkair) and low-cost (Scoot) airline operations to serve markets that we would not be able to serve with only one type of airline in the portfolio. In China, we are one of the biggest foreign airline groups in terms of the number of points served, with 29 points. In India, we are the biggest foreign airline group in terms of destinations served, with 14 points. Our multi-hub strategy, in which we have airlines in other countries together with partners, enables the SIA Group to participate in growth markets outside of Singapore. Our joint-venture airline in India, Vistara, now has 22 aircraft in its fleet and is planning to launch international operations. Nokscoot in
Thailand is also growing. It will soon add narrowbody aircraft to its fleet, which currently only has larger wide-body aircraft, and will be looking at new destinations to serve.
What is the rationale for launching Krispay?
To provide customers more options to use their miles. With Krispay, members of SIA’S Krisflyer frequent flyer programme can use smaller quantities of miles for everyday spending—such as on petrol and food and beverages—instantaneously.
How else is SIA tackling the challenges of the digital age?
We aim to be the world’s leading digital airline. Last January, we launched our Digital Innovation Blueprint. The programme encompasses company-wide training programmes; building digital capabilities through extensive It-related recruitment; large-scale investment in IT infrastructure; and increased collaboration with global tech leaders, start-ups and research institutes. One significant investment has been an in-house Digital Innovation Lab to enable our people to work with innovative companies, including start-ups, established incubators and accelerators, to stimulate new ideas and facilitate collaboration in a creative environment.