SINGAPORE: Singapore Airlines will spend $850 million to increase the overall seat count by up to a quarter in its fleet of A380 superjumbos, and halve the number of first-class suites, as it seeks to combat lower airfares and boost its competitiveness.
The airline, like its Hong Kong-based rival Cathay Pacific Airways, has been struggling against mounting global competition from Chinese and Middle Eastern rivals and low-cost carriers, without domestic flights to underpin their earnings.
Singapore Airlines’ yields, a proxy for airfares, are currently at a seven-year low and its A380 seat count has been the lowest in the industry.
After the planned revamp, the seat count in the Singapore Airlines A380s — which it flies to destinations like Sydney, London and Hong Kong — will rise by as much as 24 percent to 471 as the airline makes better use of the aircraft’s space without reducing the size of economy class seats.
British Airways, with 469 seats, will be the only carrier with a lower A380 seat count after the revamp.
The new A380 seats will enter service in December on the first of five new aircraft joining its fleet, and 14 existing planes flying with products designed a decade ago will be retrofitted by 2020.
The revamped A380s will have six first class seats, versus 12 earlier, which CEO Goh Choon Phong said would better match supply and demand at a time when the airline is undertaking a three-year transformation plan to stay competitive.
Singapore Airlines has long had a reputation for its premium products and service, which rivals Middle Eastern carriers like Etihad Airways and Emirates in terms of luxury, and its new first class suites will be nearly 70 percent larger than the old ones.
“We are very good at doing a lot of premium things for our customers in a cost-effective manner,” the CEO told Reuters on the sidelines of an event to unveil the seats.
Some carriers, including United Airlines and Qantas Airways, have not installed first class on newer aircraft given more demand for business class, which now often has fully flat-beds that were once exclusive to first class.
But for other airlines, first class remains a showpiece for attracting elite passengers and for broader brand marketing.
CAPA Center for Aviation Chief Analyst Brendan Sobie said it made sense for Singapore Airlines to have fewer first class suites, given they were less full on average than other cabins. “The yield premium that it generates and marketing benefit makes it worthwhile to retain and improve,” he said.
“Economy and premium economy revenues will increase due to the higher seating density. Overall the profitability of the A380 should improve, making the investment worthwhile.”
Singapore Airlines set to splash the cash in bid to up seat count by a quarter
Singapore Airlines set to splash the cash in bid to up seat count by a quarter
Saudi Arabia opens 3rd round of Exploration Empowerment Program
RIYADH: Saudi Arabia’s Ministry of Industry and Mineral Resources, in collaboration with the Ministry of Investment, has opened applications for the third round of the Exploration Empowerment Program, part of ongoing efforts to accelerate mineral exploration in the Kingdom, reduce early-stage investment risks, and attract high-quality investment from local and international mining companies.
The third round of the Exploration Empowerment Program offers a comprehensive support package targeting exploration companies and mineral prospecting license holders.
The initiative aims to lower investment risks for projects and support a faster transition from prospecting to development.
"The program provides coverage of up to 70 percent of the total salaries of Saudi technical staff, such as geologists, during the first two years, increasing to 100 percent thereafter, in line with program requirements.
This support aims to develop talent, build national capabilities in mineral exploration, promote job localization, and facilitate the transfer of geological knowledge.
The application for the third round opened on Jan. 14, allowing participants to benefit from the Kingdom’s attractive investment environment, its stable legal framework, and streamlined regulatory structures, as well as integrated infrastructure that supports the transition from mineral resources to operational mines.
The ministry has set the timeline for the third round, with the application period running from Jan. 14 to March 31.
This will be followed by the evaluation, approval, and signing of agreements from April 1 to May 31, with the eligible projects set to be announced between June 1 and July 31 of the same year.
The program stages include submitting exploration data during the reimbursement and payment phase from Sept. 1 to Nov. 30, followed by technical and financial verification of work programs and approval of the disbursement of support funds in January 2027.
The exploration data will then be published on the National Geological Database in April 2027.
The ministry emphasized that the EEP focuses on supporting the exploration of strategically important minerals with national priority. It also contributes to enhancing geological knowledge by providing up-to-date data that meets international standards, helping investors make informed decisions and supporting the growth of national companies and local supply chains.
The ministry urged companies to apply early to benefit from the program’s third round, which coincided with the fifth edition of the International Mining Conference, which was held from Jan. 13 to 15.
