Seeing off the competition

Seeing off the competition

Singapore Airlines is banking on premium updates to retain its edge over Middle Eastern rivals.

The new first-class suite on Singapore Airlines' A380 superjumbo has a hotel room's touch.
The new first-class suite on Singapore Airlines' A380 superjumbo has a hotel room's touch.

Singapore Airlines' new first-class suite aims to replicate a hotel room, coming with a separate full-flat bed with a swivel leather chair, a package believed to be the world's first.

For couples flying together, the beds in the two suites of each aisle can be converted to form a double bed, which can be stowed completely when not in use.

In addition, there is a full-sized wardrobe and two stylish lavatories, one of which has a sit-down vanity counter, all for the exclusive use of six suite passengers.

In business class, couples can get intimate with two centre seats that can be transformed into double beds.

These features are part of a significant cabin product upgrade -- four years in the making -- pursued by Singapore's flag carrier to outdo other airlines when it comes to attracting elite travellers.

The new cabin upgrade for its fleet of Airbus A380 superjumbos, coming at a cost of US$850 million, seeks to fight intense competition, particularly from Middle Eastern airlines that boast modern fleets and top-quality in-flight offerings.

Cash-rich Middle Eastern carriers such as Emirates, Etihad Airways and Qatar Airways have replicated Singapore Airlines in terms of service and industry-leading premium products.

Some of these rivals have, arguably, caught up with Singapore Airlines, and others are closing in -- and fast.

Singapore Airlines chief executive Goh Choon Phong said the significant investment in new cabin products is meant to retain the airline's lead position.

It also reflects Singapore Airlines' confidence in future premium full-service air travel, he said. Some industry analysts question whether the premium market is still worth pursuing with greater demand for low-cost travel.

Five brand-new A380s entering Singapore Airlines' fleet will come with the new cabin products, while 14 existing superjumbos will be retrofitted with the new interior.

Each of the A380s will be configured with 471 seats in four classes, featuring six suites, 78 business-class seats, 44 in premium economy and 343 in economy.

The current version of a Singapore Airlines A380 has 441 seats.

The increase in seats in the new cabin interior should boost Singapore Airlines revenue.

Philip Goh, Singapore Airlines vice-president for Southeast Asia, shared his insights about the airline's new cabin products with the Bangkok Post.

"Singapore Airlines was the world's first airline to operate A380s and has been using superjumbos for a decade. The first A380s which we acquired are being returned to Airbus," he said.

"As we are taking delivery of new A380s, we see it fitting and timely to put these new cabin products in them, as people are looking for improved offerings."

Mr Goh said Singapore Airlines wants to make its A380s more appealing to increase their value.

"Our planes have constantly undergone upgrades -- new business-class seats four years ago, new premium economy seats two years ago," he said.

"We always do this because our products need to be continuously improved so we are ahead of competitors.

"When it comes to A380s this time around, we think it is the right time to put a totally new version of everything that we have in them."

Singapore Airlines is also acquiring new Airbus A350s and Boeing 787 Dreamliners, though cabin products features will depend on how they're deployed.

"This A380 and some of the long-haul aircraft we have serve the long-haul markets, particularly with dense traffic demand. The new A380 has 471 seats, more than any other planes, which typically average 280 to 300 seats each," Mr Goh said.

"The massive amount of seats in dense markets lets us strike a balance between premium- and economy-class seats."

The four-cabin class configuration of the new A380 will not become standard for all future Singapore Airlines' aircraft, he said.

"Some routes have very thin premium-class demand and I don't think it is economical to put those seats in those aircraft. It may be better to serve them with three-class or two-class products," Mr Goh said.

He admitted that airline customers may get confused with the multiple cabin offerings.

"When we develop new products, we are conscious about this issue. We are trying to reduce product types, not increase them," Mr Goh said.

Singapore Airlines has two versions of the A380 -- one where the upper deck is purely business class, with 86 seats as well as suites, and premium economy and economy on the main deck, while the other version has an upper deck with 60 business-class seats and 88 in economy, and the main deck has suites, premium economy and economy.

But as the aircraft is being retrofitted, all A380s will eventually have a common configuration, Mr Goh said.

It is scheduled to take two years to transform the A380 fleet, with five new superjumbos arriving next year, followed by the start of retrofitting older aircraft.

"The first route for the new A380s is Singapore to Sydney next month. It is a 7½-hour flight, and for a daily flight you can do it with just one aircraft and then return," Mr Goh said. "But if you wanted to fly to London, you need two aircraft for a daily route."

"If you flew a shorter route, you would have too much downtime. So this route is optimal."

Future routes for the new A380s include London, Hong Kong, Paris and Zurich.

"This aircraft is not meant for the US routes, although we have a flight going to John F Kennedy International Airport via Frankfurt," he said. "We are taking delivery of the ultra-long-range A350 next year and that will be used on Singapore-US non-stop.

"A lot of people ask us to resume the non-stop Singapore-US flight, but now we don't have the aircraft.

"People want non-stop services, so our focus is on bringing back non-stop flights.

"The airline's motto is you cannot stop and rest on your laurels, otherwise somebody else will come and overtake you."

As a result, after the new A380 offering, the product innovation people will start designing the next generation of cabins, which typically come out every four years, Mr Goh said.

"Introducing a new class of product is very expensive, but competition demands it," he said.

"For some airlines, I don't know how their economics justify the kind of products they are throwing into the market. The economics are important to justify such a huge investment."

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