Page 7 - AAA NOVEMBER - DECEMBER 2016 Online Magazine

COVER STORY ASIAN AIRLINES

prices. The sharp decline in jet fuel prices include seven of the ultra-long-range A350-
started in late 2014 and the average price of a 900ULR variant, for which Singapore Airlines
barrel of jet fuel in 2015 was 42 percent lower is the launch customer (deliveries begin in
than in 2014. As of November 4, jet fuel prices 2018). The A350-900ULR will be used to
for Asia and Oceania stood at US$55.9 per relaunch non-stop flights between Singapore
barrel, a decrease of 10.2 percent compared and both New York and Los Angeles. Because
to a year ago. However, increased uncertainty of the A350’s range and fuel efficiency
in 2017 on the back of political developments capability, the airline will use the new
in the USA and UK, could lead to an increase generation jetliner to launch routes that were
in fuel prices. not commercially viable before. Premium
Economy cabins have also now been whole
Singapore Airlines heartedly embraced by Singapore Airlines
The SIA Group announced on 3 November and will be an important revenue generator in
that it had earned an operating profit of the future, especially as new ultra-long range
US$302 million in the first half of the 2016-17 routes are introduced. The airline has taken
financial year, an increase of US$62 million an aggressive schedule to implement it on
(+25.8 percent) year-on-year. Group revenue its major newer aircraft. All of its A350s will
declined US$273 million from one year ago have cabins with Premium Economy and all
to US$7,305 million (-3.6 percent) due to A380s have already been retrofitted to offer
persistent downward pressure on yields, an Premium Economy seating. 10 Boeing 777-
indication of the difficult conditions prevailing 300ERs have already been retrofitted with
in the market. In the 2015-16 financial year, Premium Economy seating and an additional
the SIA Group had reported a net profit of 17 aircraft will receive Premium Economy
US$804 million, which was an improvement seating by the end of next calendar year.
of 118.5 percent (US$436 million) over its net Singapore Airlines is also preparing for its
profit in 2014-2015. In terms of new routes, new A350-900s by removing older, less fuel-
which are vital to retaining market share and efficient jetliners from service. During the
profits, Singapore Airlines launched its non- January-March 2016 quarter, it took delivery
stop Singapore-San Francisco Flights on of its first A350-900, while removed two 777-
24 October using its sixth Airbus A350-900 200ERs and two A330-300s from service in
jetliner and passenger feedback on the new preparation for returning the aircraft to their
route has been positive. The aircraft was also lessors. Singapore Airlines will have inducted
the 10,000th airplane delivered by Airbus. 12 A350-900s into operations by March 2017.
The airline received its first A350-900 in The greater focus on the premium end of
March and now has six of the aircraft type in the market, induction of more fuel-efficient
its fleet, with another 61 on firm order. These jetliners and a greater focus on rationalising

Singapore Airlines has started
the process to return some of its
A330-300s back to lessors. The
aircraft will be replaced by its new
A350-900s
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