Singapore Airlines Ltd to Undergo Transformation: 6 Must-Read Quotes from Management
Singapore Airlines Ltd (SGX: C6L) is looking to transform its business.
For its financial year ended 31 March 2017 (FY16/17), the airline operator reported a 55% decline in profit. During Singapore Airlines’ fiscal fourth quarter earnings presentation, the management team shared more information about the company’s business transformation. Here are six quotes investors may not want to miss.
For the first three, please go here.
No stone left unturned
The transformation of Singapore Airlines will be comprehensive. The company’s chief executive officer, Goh Choon Phong, said:
“And it is not about one thing.
It is about a comprehensive review of whatever we are doing and to actually leave no stones unturned, in how we can better position ourselves for growth, and much of it will be touching on legacy practices and current ways of doing things.
Not incremental change that we do every year, but really fundamentally look at and question ourselves, is this still the right approach, the right platform in the future, leveraging what we have already done in those other initiatives I outlined earlier.”
In the statement above, Goh hinted that the changes in Singapore Airlines could be significant. He drew a distinction between the incremental changes that the company adopts yearly, and what the airline operator is considering now. He added:
“So it is about revenue, how we can actually generate more revenue for the Group. It is about how we can improve our processes to make it a lot more effective, a lot more efficient. It is about how we can rebase our cost structure so that it can be a lot more competitive going forward.”
Revenue and costs will be considerations as well. Later on, Goh reiterated that the changes are not about costs alone. Singapore Airlines will be looking at how it can generate more revenue.
Changes are afoot
Some changes have already been made. Goh said:
“And within the organisation – within the SIA organisation – transformation also has taken place in different areas of SIA already.
For example, in the commercial area, we have looked at how we can do pricing differently. As a result, a new pricing unit has been set up. We have looked at how to do revenue management differently. As a result, we are now in – have actually introduced a new revenue management system. And other activities that are taking place elsewhere in the organisation as well.
But now what we’re saying is that we’re going to put everything together and take a holistic look to see what else we must change. And some of it could be radical, but if it is, so be it. If it’s the right thing to do, we’ll do it.”
There was no timeline for the transformation shared. Investors will have to wait for more details to be revealed before conclusions can be drawn.