The rumours I heard were that there would be one FSM and one CSS. If they are going to cut costs, surely this would be more logical.
At the end of the day, we still make profit, perhaps some say even more profit than is actually declared. There are lots of rumours about the sale of SQ's 49% share in VS. Perhaps we are slashing costs to make the airline more appealing to the likes of LH or some unknown third party.