SIA's China dominance under threat as Chinese carriers boost capacity

While tourist arrival numbers shrink.

Smaller carriers in Mainland China are gunning for a share of Singapore Airlines' Chinese market, according to a report by Macquarie.

The report highlighted that Chinese Airlines such as Xiamen Airlines, China Southern Airlines, Air China and China Eastern Airlines are all boosting capacity on the Singapore-China segment.

Although SIA dominates the market with almost 3 million seats, it numbers will be under pressure from increasing supply and dwindling demand.

“We are cautious on the Singapore-China segment for SIA as we see the market increasing its capacity between the two countries while both inbound and outbound Singaporean tourist statistics have showed negative performance in Jan-Mar 2015,” MAcquarie said.