I think SQ realise they are a lost cause when long range aircraft bypass their pathetic country.
There will still be a need for hubs unless these long range aircraft can be filled up with point to point passengers. Possible on SYD - LHR. But Adelaide - Bombay, Perth - Athens, Melbourne - Chang Mai ? I doubt it and these are all easily available through Singapore.
The Middle East hubs are the best positioned but some routes will still be shorter via Singapore. On some routes there will be direct competition with little if any time advantage. Some people will prefer to fly SQ and some will prefer EK. SQ still haven't resorted to deep discounting, their fares are usually among the highest, as are their load factors and their profits.
Singapore is hardly a backwater, being positioned in the fastest growing region on earth. Remember this tiny country was bailing out the rest of the world during the financial crisis.
Three and a half million citizens, one and a half million foreigners. No natural resources, can't produce enough food or water for the population yet;
1. Eleventh largest foreign exchange reserves in the world.
Foreign exchange reserves - Wikipedia, the free encyclopedia
2. Set to be the fastest growing economy in the world in 2010
Channel NewsAsia - Singapore set to be world's fastest-growing economy in 2010 - channelnewsasia.com
3. Highest number of millionaires per capita in the world
We Are Wealthier Than Switzerland | Salary.sg - Your Salary in Singapore
These guys must be quite smart to have done all this with so little, don't write them off just yet.
