By Admin88 
In the past year, Cathay Airlines was a negative year for public opinion. From the frequent complaints, large -scale cancellation flights to flight attendants discriminated against passengers who were not good at English.The recovery of global travel is challenging the corporate governance of this Hong Kong "business card".In contrast, Singapore Airlines has performed steadily. Next, he has to enter India, the only "raw meat" market in Asia, India.In an exclusive interview with Forbes, Wu Junpeng, a long -term CEO of Singapore Airlines, outlined our plan to we to build the Indian market into the company’s next large aviation hub.
Text ｜ Jonathan Burgos
Singapore Airlines CEO Goh Choon Phong has many exaggerated results: a record of profitable profits, almost full aircraft, and mouth -watering best airline awards.But it was the Indian market that really made 60 -year -old Wu Junpeng feel excited.
At the end of November last year, Wu Junpeng accepted an exclusive interview with "Forbes" at the Xinhang Training Center near Changi AirportSimla Stock. He enthusiastically said to reporters: "You can see how much potential here is." For Xinhang, the Indian market in the Indian market isThe potential is not just to increase some of it.Wu Junpeng plans to make it a hub, becoming the second headquarters of the airline, and has almost unlimited development space.To achieve this plan, Singapore Airlines signed a historic agreement at the end of 2022 to obtain 25.1%of Indian airlines. It is expected that the transaction will be completed in March this year.
Of course, Singapore Airlines cannot be separated from Singapore.It is the most successful flagship airline in this city.Its stewardess is dignified and generous, and it is a symbol of Singapore, a world -renowned Singapore.However, during the epidemic, as a small airline company with a population of only 5.6 million, all its weaknesses were exposed.
"Because there is no domestic market, we have been seriously affected by the new crown epidemic." Wu Junpeng said.At the lowest point in April and May 2020, the monthly passenger volume of Singapore Airlines was less than 11,000, only 3%before the outbreak of the epidemic, and the passenger volume in January of that year was 3.4 million."This blow is devastating." Wu Junpeng recalled.
This vulnerability exists from the beginning, and it is not because Singapore Airlines has not tried to establish an aviation hub in the area before.In India, the company proposed some equity of Oriental Airlines in 2007, but was rejected by the shareholders of this state -owned airline.In addition, a joint venture between SCOOT and NOK Air (SCOOT) and NOK Air (SCOOT) under Xinhang also closed down during the epidemic.Wu Junpeng said: "We have been studying how to participate in the Indian market directly."
This transaction between Xinhang and Indian Airlines is the final result of a series of long -term transactions.For decades, Indian Airlines has been behind in Asia.In 2022, Tata Group privatized and took over it -or it can also be said to be replaced.(J.R.D. Tata, former chairman of Tata Group, founded its predecessor Tata Airlines in 1932.) However, as early as 2015, TATA SONS, the main investment holding company of Xinhang and Tata Group, began to operate a family named in India called a family named in India called a family named in India.Vistara Airlines.
Then, at the end of 2022, Shinhang and Tata announced that it would merge Vistara with Indian Airlines to form an enlarged Indian aviation group. Xinhang will have a quarter of a minority equity, and TATA SONS has the remaining shares.Statista’s data shows that after the merger in March, Indian Airlines will become India’s second largest airline (about 23%of the market share), second only to Indigo, which has 55%of low -cost airlines with a market share.(Indian Airlines refuses to comment on this article.)
India is a valuable prize for Singaporean.This is the last large market in Asia, because the Indian aviation market is basically not open to the outside world, and the Indonesian aviation market is relatively mature (led by large companies such as Lion Air and Eagle Air).Asia -even the world has rarely other aviation markets that have such potential.
Wu Junpeng said: "India’s aviation market is growing, but the service is obviously insufficient." This is the advantage of India.Measured at any standard, it is not a mature aviation market.According to Statista data, it is expected to have more than 327 million Indian passengers on domestic and international flights last year, an increase of 73%over the previous year. As the Indian economy continues to grow, aviation travel will also rise, and Singapore Airlines is now preparing to prepareA cup of cake in this market, because Singapore is already a traditional hub for Indian tourists to many international destinations.Lucknow Wealth Management
For Singapore Airlines, Cool Airlines, this has exactly its place of martial arts.In terms of transporting passengers from small airports from some parts of India (and Southeast Asia) to Singapore, Kuhang played an important role.Kuhang used narrow aircraft on the routes that were mostly less than 5 hours of flight time, and ordered 9 122 E190-E2 from the Brazilian Aviation Industry Corporation, which will start delivery this year.These small aircraft are very suitable to provide high -efficiency services to small airports with less passenger flow.
Shinhang’s low -cost airlines, Kuhang, operated a narrow -body aircraft A320, which transported passengers from some smaller airports in the region to Xindhang’s hub airport.Image source: Courtesy of Singapore Airlines
The Japanese Village Securities (NOMURA) analyst in Kuala Lumpur Ahmad Maghfur USman said in an email: "Xinhang hopes to be in India’s long -term development prospects. Indian airline’s operating efficiencyIt has obviously improved, and with the formation of the new fleet, this situation will be further improved.The airline was promoted to one of the leading airlines in Asia.
Wu Junpeng, who has been the CEO of Singapore Airlines since 2011, has proven that he is a leader who can carry out long -term planning during the epidemic."We risk the risk of letting the airline bankrupt (made this decision)," Wu Junpeng said."That’s a period of pressure."
During the epidemic, Wu Junpeng asked his largest shareholder, Singapore State -owned Temasek Holdings and other investors to inject new capital into Singaporean ($ 11.3 billion) to Singapore Airlines by increasing the company’s stock.Including the sale of convertible bonds, he raised a total of S $ 23.5 billion.Although Xinhang tried to retain employees as much as possible, he made 20%during this period and ordered that the salary of high -level managers was as high as 35%.
Xinhang used this fund to expand and update the fleet to prepare for the era after the epidemic.During this period, it received 36 new planes (the total number of aircraft reached about 200 aircraft), and will receive another 100 from Airbus, Boeing and Brazilian aviation industry in the next few years.Just when Singapore Airlines was so, competitors were still cutting expenses and sealing aircraft.With the delivery of the aircraft, it is expected that by March 2025, Xinhang’s capital expenditure will increase by 48%to S $ 3.4 billion, and will reach S $ 4.3 billion next year.
At the same time, the company also spent 230 million Singaporean transformed the cabin of small aircraft on the Asia -Pacific short -distance route, installed more flat -lying seats in the business class, and provided free WiFi on 95%of flights (for all for all (for all all for allClass).In addition, the $ 50 million is used to upgrade the lounge of Terminal 3 of Changi Airport.
All these preparations means that when the epidemic is over, the airline travel restrictions are canceled, and Singapore Airlines can immediately convert the depressed demand into a full -seat flight and put it into operation, and the ticket price provided is also very favorable.The number of employees of the airline has now restored the level before the epidemic and is recruiting.The Xinhang Training Center is very lively. Pilots are trained on Airbus and Boeing simulator, while flight attendants trained the legendary customer service skills in the simulation cabin."We recruited 3,000 airliner last year, and we might recruit 3,000 people in the next fiscal year." Wu Junpeng said.
As of September last year, the airline’s routes covered 119 international destinations, and the capacity was about 87%before its epidemic.Singapore Airlines and its Cool Airlines in the first half of the fiscal year (as of March) have passed more than 17.3 million passengers, an increase of 52%over the previous year.According to data from the International Air Transport Association, as of September last year, Singapore Airlines’s visit rate was 89%, which was far higher than the average level of 80%of airlines in the Asia -Pacific region.Because the airline retains the basic level of the crew when the flight is grounded, "when the border is reappeared, we can quickly deploy flights."
After a huge loss of S $ 5.5 billion in three years, in the fiscal year of March last year, the company’s net profit rebounded to a record of S $ 2.2 billion.According to Bloomberg, in the first half of this fiscal year, Xinhang’s net profit reached a record high of S $ 1.4 billion, and the annual net profit will exceed S $ 2.6 billion.Most of the convertible bonds issued during the epidemic period have been redeemed, and the stock price of Xinhang has doubled compared with the lows during the epidemic. Temasek and other shareholders have made a lot of money.Chennai Investment
As a supplementary measure, Wu Junpeng also signed code sharing or other cooperation agreements with many Asian and European airlines, although many of these aircraft companies have regarded themselves as new navigation competitors.In order to restore profits, these airlines are focusing on domestic routes and short -distance areas, and they will let Singapore Airlines manage their international long -distance flights because these flights sometimes lose money in their own hands.Of course, long -distance international flights are the best and most profitable businesses for Singapore Airlines.Lethen Francis, managing director of Singapore’s aviation consulting company Francis & Low, said: "One of the key benefits to code sharing is that it enables airlines to expand its international network in an efficient way, andHelp passengers enter a larger tourist destination network. "Another advantage is that Singapore Airlines can arrange passengers to other airlines’ domestic and short -distance routes, so as to provide more destinations at a very small cost.
The loyalty plan Kris+launched on its APP has also become a profit center.Kris+has more than 300,000 monthly active users in 17 countriesSimla Investment. In the first half of last year of September, it created more than S $ 600 million in revenue, an increase of 37%year -on -year.In order to expand the platform’s influence in Australia, Singaporean and Airwallex have reached cooperation.Sky Yunhui is a Fintech unicorn company headquartered in Melbourne. Founder Liu Yueting is Forbes Asia U30 and business influential women.Sky Yunhui will modernize the payment structure of the application to improve its products and customer services.
In June last year, Singapore Airlines was rated as "Best Airlines in the World" by British Airlines Consulting Skytrax, replacing Qatar Airlines, which has always occupied this award since 2019, which can be described as icing on the cake.This has returned to the issue of the Indian market and its broad prospects.Through transactions with Indian airlines, Xinhang will be more capable of competing with the three Gulf Airlines -Qatar Airlines, especially the UAE airline and Etihad Airlines.Line.
Wu Junpeng said: "If Indian Airlines becomes a world -class multinational airline and has the reputation of high -quality services and quasi -point arrival, it will become a very attractive choice for Indians to travel to Europe."In the end, the dream of future dreams are hovering over India.
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