Under pressure

Singapore Airlines is the latest major Asian full-service carrier to report a big drop in profits. Long admired for its industry-leading service standards, attractive “Singapore Girls” cabin crew and first-mover initiatives when it comes to new aircraft, why has the carrier hit a wall?

Singapore Airlines (SIA) chief executive Goh Choon Phong may have had bad news for his Government owners when he reported a net loss of A$133.8 million in the carrier’s quarter ending March 31 – its first quarterly loss in five years – but he was also laying down a marker that essentially said: the bleeding stops here.

“We will take bold actions to address both revenue and cost” he told reporters and analysts. “No stone will be left unturned… there will certainly be changes in the way we do things and staff will have to pick up new skills.”