Mumbai: Singapore Airlines' (SIA) partnership with the Tata Group to start a new domestic airline in India declares its designs on Asia-Pacific in a way that its previous alliances and investments have not.
Dependent on international passenger traffic, SIA is trying to reduce its exposure to markets in the US and Europe. Premium travel saw a decline on the back of a weakened Europe. The stronger market of the US is also being served by competition such as Hong Kong's Cathay Pacific with a strategic geographical advantage. Asia-Pacific then, holds the most promise for SIA.
With its $ 49 million investment (49 per cent of the JV) in the full-service airline, SIA will attempt to tap the premium market in the country, dominated by Jet Airways after the collapse of Kingfisher Airlines, and create a hub in New Delhi, to link the Americas with Australia, one of its stronger markets. It would have to do this amidst increasing competition from Gulf carriers and low cost carriers (LCCs). SIA chairman Stephen Lee had hinted at its intention in July when he had said the airline was looking for investment opportunities in India, and that along with China, it was a key market.
Read News In Full 23/09/13 Aneesh Phadnis/Business Standard
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