Airline News
SIA pushes for A350LR, Tigerair narrows losses
July 27th 2015
Singapore Airlines (SIA) is in talks with Airbus and Boeing over the acquisition of ultra-long range aircraft capable of performing nonstop Singapore-U.S. services, allowing it to recover a market niche that has since been filled by the likes of Cathay Pacific Airways and Qantas Airways after SIA dropped Los Angeles and Newark in 2013 when its fuel-thirsty A340-500s deployed on the routes no longer proved economically sustainable. Read More »
“We, of course, want it as soon as possible,” SIA chief Goh Choon Phong told Bloomberg. “There isn’t really a commercially viable aircraft that could fly nonstop.” However, doing so has proven difficult owing to limitations in existing available aircraft. Of the market's current offerings, only the B777-200LR has the range to serve Los Angles nonstop but would not be able to do so with Newark without weight penalties in the form of added fuel tanks.
According to Leeham News, SIA has turned its attention to a long-range variant of the A350-900 which, if developed, would likely feature a maximum take-off weight 12 tons heavier than the standard version (268 vs 280 tons) thereby extending its range albeit with as much as 22% improved fuel burn compared to the B777LR, Leeham said. SIA has 70 A350s on order and could convert some of them into LR variants should the project go ahead. Boeing’s closest next generation rollout, the B777-8X, is still seven years away from entering service.
Meanwhile, Singapore’s Tigerair has posted a SG$ 1.7 million ($1.25 million) loss for the first quarter of fiscal year 2016, reducing a SG$ 62.5 million loss in the year-ago period. Tigerair chief, Lee Lik Hsin, said fleet and network consolidation led to a 4.7% improvement in yields, but load factor fell 1.2 % to 83.5%. He added the low-cost carrier would “continue to work towards a return to full-year profitability in a challenging environment,” despite the traditionally weak July-September quarter ahead. SIA holds a 40% stake in Tigerair, while SIA’s parent, Temasek Holdings, has a 55.8% interest in the LCC.
