Just an update for all those loyal SQ watchers out there. Here is another gem from the Senile Minister.
Original Source 05/01/04 - Today Newspaper
My
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Quote:
To prevent that scenario from happening, Singapore Airlines and Changi Airport have to cut costs by 10 to 15%.
Wages form only 20% of SIA's costs so other costs also have to come down to make the airline more competitive.
Jobs will have to be redesigned.
Singapore Airlines he said, has become "tubby" like Qantas and British Airways were in the past.
Because these airlines have restructured and are leaner, Singapore Airlines too has to become leaner. One way was for pilots to do split shifts – which meant that they would report for duty only when there was work.
This way, "we save on the number of pilots as the airline expands. They are many things which can be done which will trim costs. I mean you can bring costs down by 10, 15%, you will become competitive."
He cited the case of high-flying Emirates, the national carrier of Dubai, which charged 10 per cent lower than what SIA charged. Dubai used its oil wealth to subsidise the lower airline charges, he said, because it wanted to build up its hub status.
Budget airlines will eat into SIA's business but whatever happens, the airline and Singapore must keep adjusting and changing.
Mr Lee said there was no need to be apprehensive of the coming changes — but Singaporeans would need to be on their toes.
"If we don't have that discipline or the resolve or the wit to think of new strategies, new ways to overcome the competition, then we deserve to be sidelined."
In part 2 of the interview which will be on Channel NewsAsia tomorrow at 10pm, SM Lee will explain why the government came down so hard on the SIA Pilot's Union - Alpa-S - and what SIA's management needs to do to shape up.
More to come I am sure .... DG