Hero to zero: SIA’s fleet growth crashes as Mideast rivals soar

It has been a stagnant decade for the national carrier.

There was a time when SIA’s fleet size was on top of its Mideast competitors. But that time is past, and now the national carrier’s rivals have far overtaken it in terms of aircraft count.

Data from Barclays Research revealed how far SIA has fallen in the past decade. Emirates Airlines’ fleet was 44% smaller than SIA’s at the end of 2004, but has grown to be 53% bigger by 2014.

From 2004 to 2014, both Emirates airlines and Turkish Airlines had a compound annual growth rate of 14%, while SIA languished with a mere 3%.

According to Barclays, “The capacity growth of the Middle Eastern carriers was well supported by the demand growth, with higher RPK growth than SIA’s. Emirates’ RPK grew at 18% CAGR vs SIA’s 4% in FY04-14.”

“We expect the Middle Eastern carriers to continue gain market share from SIA, based on their large aircraft order books relative to their current fleet sizes. The confidence of the Middle Eastern carriers lies in their distinctive competitive advantages,” the report noted.