SINGAPORE: Singapore Airlines said Friday it will absorb its struggling premium wing SilkAir following a multimillion-dollar upgrade as part of a reform drive to stay competitive.
The move comes after the firm, facing tough rivalry in the high-end market from other full-service airlines and in economy class from budget carriers, last year consolidated its low-cost units TigerAir and Scoot into a single entity in a streamlining exercise.
SIA said it would stump up more than S$100 million ($74.5 million) on a cabin upgrade for the wholly owned subsidiary, including new “lie-flat seats” in business class and backseat in-flight entertainment in business and economy class.
The overhaul is expected to start in 2020 and the merger will take place after a sufficient number of aircraft have had their cabins redesigned, the firm added.
Friday’s announcement “is a significant development to provide more growth opportunities and prepare the group for an even stronger future,” SIA chief executive Goh Choon Phong.
Last year it embarked on a three-year transformation program in a bid fend off competition and defend its reputation as one of the world’s leading airlines.
SIA said Thursday the transformation has started to bear fruit, with group net profit climbing 148 percent to S$893 million in the year ended March 31.
But SilkAir, a full-fare carrier that flies largely to holiday spots across Asia, turned in the weakest performance in the group with operating profit tumbling 57 percent to S$43 million.
The merger “should have been done years ago because SilkAir has always been the weakest link within the SIA group,” said Shukor Yusof, an analyst with aviation consultancy Endau Analytics.
Shukor noted that SilkAir was losing to the competition because, as a premium airline, it charges full fares while a host of regional budget carriers sell tickets to the same destinations at a cost a fraction of the cost.
“For SIA, the cost of running SilkAir is very expensive,” he said.
“As a full-fare airline, flying to a niche resort destination is a very difficult market to make money from because the market these days is focused on carriers offering cheap fares. It’s all about costs.”
Singapore Airlines to absorb regional wing SilkAir after upgrade
Singapore Airlines to absorb regional wing SilkAir after upgrade
Jordan’s industry fuels 39% of Q2 GDP growth
JEDDAH: Jordan’s industrial sector emerged as a major contributor to economic performance in 2025, accounting for 39 percent of gross domestic product growth in the second quarter and 92 percent of national exports.
Manufactured exports increased 8.9 percent year on year during the first nine months of 2025, reaching 6.4 billion Jordanian dinars ($9 billion), driven by stronger external demand. The expansion aligns with the country’s Economic Modernization Vision, which aims to position the country as a regional hub for high-value industrial exports, the Jordan News Agency, known as Petra, quoted the Jordan Chamber of Industry President Fathi Jaghbir as saying.
Export growth was broad-based, with eight of 10 industrial subsectors posting gains. Food manufacturing, construction materials, packaging, and engineering industries led performance, supported by expanded market access across Europe, Arab countries, and Africa.
In 2025, Jordanian industrial products reached more than 144 export destinations, including emerging Asian and African markets such as Ethiopia, Djibouti, Thailand, the Philippines, and Pakistan. Arab countries accounted for 42 percent of industrial exports, with Saudi Arabia remaining the largest market at 955 million dinars.
Exports to Syria rose sharply to nearly 174 million dinars, while shipments to Iraq and Lebanon totaled approximately 745 million dinars. Demand from advanced markets also strengthened, with exports to India reaching 859 million dinars and Italy about 141 million dinars.
Industrial output also showed steady improvement. The industrial production index rose 1.47 percent during the first nine months of 2025, led by construction industries at 2.7 percent, packaging at 2.3 percent, and food and livestock-related industries at 1.7 percent.
Employment gains accompanied the sector’s expansion, with more than 6,000 net new manufacturing jobs created during the period, lifting total industrial employment to approximately 270,000 workers. Nearly half of the new jobs were generated in food manufacturing, reflecting export-driven growth.
Jaghbir said industrial exports remain among the economy’s highest value-added activities, noting that every dinar invested generates an estimated 2.17 dinars through employment, logistics, finance, and supply-chain linkages. The sector also plays a critical role in narrowing the trade deficit and supporting macroeconomic stability.
Investment activity accelerated across several subsectors in 2025, including food processing, chemicals, pharmaceuticals, mining, textiles, and leather, as manufacturers expanded capacity and upgraded production lines to meet rising demand.
Jaghbir attributed part of the sector’s momentum to government measures aimed at strengthening competitiveness and improving the business environment. Key steps included freezing reductions in customs duties for selected industries, maintaining exemptions for production inputs, reinstating tariffs on goods with local alternatives, and imposing a 16 percent customs duty on postal parcels to support domestic producers.
Additional incentives in industrial cities and broader structural reforms were also cited as improving the investment climate, reducing operational burdens, and balancing consumer needs with protection of local industries.
