In view of stiff competition, Singapore Airlines has taken recourse to more than 50 cost cutting initiatives as part of a three-year plan, revealed a newsletter addressed to the staff.
The cost cutting initiative steps include reducing fuel burn and reviewing its relationship with key suppliers. The airline is facing increased competition from its Chinese and Middle Eastern rivals and it lacks domestic flight markets to offset international competition.
Goh Choon Phong, CEO of Singapore Airlines, in the newsletter, said, “The airline was working on 56 initiatives, which also include more self-service options for customers and reducing in-flight food and beverage wastage.”
He added, “While it is early days in the three-year programme, I am pleased to report that it has been going very well, and I am confident we are on track to meet our objectives.”
Incidentally, the airline has also set up a dedicated transformation office to review its strategy in May after a surprise fourth-quarter loss although it not released a cost-cutting target.
Singapore Airlines has handed two of regional arm SilkAir's routes to budget carrier Scoot, merged part of SilkAir's finance team with its parent and offered unpaid leave to cabin crew as part of the review process.