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SIA Group CEO thanks passengers, explains capacity cut strategy
April 3rd 2020
Singapore Airlines (SIA) group CEO, Goh Choon Phong, has thanked passengers for their support as the carrier group deals with the impact of the coronavirus outbreak. Read More »
In a letter to members of SIA's KrisFlyer frequent flyer program, Goh said "few, if any, of us could have imagined a global pandemic like this as country after country bans international travel due to a viral outbreak".
"While the measures to contain COVID-19 have been taken from a public health perspective, they have crippled the airline industry and presented us at Singapore Airlines with the greatest challenge in our history," Goh said in the letter emailed to KrisFlyer members this week.
Singapore has closed its borders to foreigners and banned transit passengers travelling through the country. Singaporean citizens and long-term residents returning home either would be quarantined or subject to 14 days of self-isolation.
"Even as we scaled back our operations due to the border closures, we understood many of you and your loved ones needed to return home as soon as possible," Goh said.
"And you trusted us to make that possible. That is why, despite the fast deteriorating operating economics, we persisted with services to key cities for as long as we could.
"We have received many encouraging notes from our customers in the last few weeks. Thank you, your warm words of appreciation mean a great deal to us during this trying time.
"At the same time, we know many of you have been adversely affected by the large-scale flight cancellations. I sincerely apologise for this."
Last week, SIA said it would operate just 4% of its originally scheduled capacity until the end of April, with 138 aircraft from the SIA and regional wing SilkAir fleet of 147 aircraft grounded. Its low-cost carrier (LCC), Scoot, will park 47 of its 49 aircraft.
The announcement represented an increase of the 50% reduction previously announced by the airline group.
The company has secured S$19 billion (US$13 billion) in funding through an equity raising and loan package from Singapore's sovereign wealth fund, Temasek, and Singapore bank, the DBS Group.
SIA said it would extend all KrisFlyer Elite and PPS Club status for 12 months at the end of the member's membership year. The offer applied to all members whose membership would have expired between March 2020 and February 2021.
"This is a small token of our appreciation for your loyalty and support, which we value greatly as we work hard to get through this outbreak," Goh said.
"For more than 70 years, SIA has set the standard for in-flight products and services in the aviation industry. It remains unclear when the COVID-19 outbreak will be brought under control.
"But when it does, you can be sure that we will be ready to welcome you back on board and deliver, once again, the exceptional service that you have come to expect and are familiar with."
