SIA pulls out all the stops with extra-aggressive game plan in 2015

It’s no longer a conservative player.

SIA will pull out all the stops in coming years with an extra-aggressive game plan that involves rejuvenating its fleet, expanding its route network, and developing new ancillary businesses to complement its air transport business.

A report by Maybank Kim Eng noted that in its post-results briefing, SIA’s management revealed that it will invest heavily to revive the national carrier’s flagging results.

“SIA traditionally takes calculated risks and conducts a limited number of experiments in any given year. This time around, it appears to be going all out with business hardware, software and ventures into new businesses. The past four years of disappointing results might have forced it to take a hard look at its conservative ways,” said Mohshin Aziz, analyst at Maybank Kim Eng.

SIA's management plans to rejuvenate its fleet in FY16-18 by deploying ultra-modern aircraft and spending USD325m to retrofit 19 Boeing B777-300ERs with new seats and other cabin enhancements.

The group will also expand its route network through its partner airlines and affiliates. It also plans to embark on a multi-hub strategy at Bangkok Airport via its 49% associate airline NokScoot and in India via its 49% associate Vistara Air.

Lastly, the national carrier will develop new travel-related products such as travel insurance, destination services, more inflight sales merchandise and the sale of advertisement space to third parties