SIA Group includes
- Silk Air
- their regional carrier
- Singapore Airlines Cargo
In a statement made as part of their recent financial report, Singapore Airlines noted there will be changes once the skies reopen. Passengers must adapt to a different travel experience as regulators and airlines consider how to make flying safer.
The specifics of how the aviation sector will evolve post-Covid-19 are still unclear. However, the SIA Group has created four working groups to prepare for potential scenarios.
….. Obviously, the concern now is on safety and health. There are a few themes out there, for example, wearing masks, social distancing and contactless services. Mak Swee Wah, Executive Vice-President of Operations
He added that all issues are under examination regarding their practicality on the ground and in the air.
How will air fares be affected?
SIA’s commercial department looks at this area through a prism of demand and supply, which directly affects air fares. They also have to consider the efficacy of social distancing on planes, as the load factor affects pricing. These are aspects currently under discussions between the various authorities and airlines.
SIA chief executive Goh Choon Phong stated that it is uncertain exactly when and how the industry will recover. The Group reported an annual net loss of $212 million for the year ending March 31st, directly related to the Covid-19 collapse in air travel demand and a drop in fuel prices. This is the first loss in the airline’s 48-year history.
There will be changes in consumer behaviour and business travel trends. We are yet to see what regulatory improvements countries will put in place to address the need to contain the virus. IATA has also flagged this phenomenon, noting that over 80% of travellers will be reluctant to travel if they are subject to travel bans or quarantine on arrival.
To this end, the four working groups, working as Restart Taskforce, will consider areas such as travel experience and regulatory development.
Despite operating at minimal capacity with virtually no revenue, the airline grouping is well supported by its owners and has a strong balance sheet.
Looking towards the future
The CEO has confidence in the future of the SIA Group.
…..There is a general belief that there will be growth at some time. So obviously, with all these changes, we will have to change the way we operate too. We believe there is an opportunity for us to look at all these different factors and ensure that when we emerge, we are in a position of strength. Goh Choon Phong
For more information or make a booking, please check the Singapore Airlines website.