Singapore Airlines’ upgraded lounges reflect its confidence in premium travel

SINGAPORE Airlines : C6L 0%(SIA) is wooing premium passengers with its upgraded airport lounges that cost S$50 million for the makeover, signalling its confidence in premium travel.

The airline’s improved and larger facilities are being put into service at a time when many of its peers are ramping up resources to capture pent-up travel demand - and market share - in the post-pandemic world.

The mainboard-listed airline’s chief executive Goh Choon Phong told the media on Monday (May 30): “We are confident in the growth in premium travel. If you look at this part of the world... the economies in this part of the world are expected to grow faster than most other economies around the world. So with that, we expect that business travel and premium travel will also increase.”

He also said that most of the aircraft that were mothballed since the pandemic started in early 2020 have already been flown back from Alice Springs. Planes that are still in the Australian storage facility are meant for disposal.

The planes had been taken out in anticipation of a further ramp up in passenger capacity.

The airline group is expecting passenger capacity to rise to 67 per cent of pre-pandemic levels by September. If the ramp-up takes place faster, the pay cut restoration for its pilots “will be earlier”, said Goh.

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SIA pilots’ basic pay was sharply cut when the aviation industry hit turbulence as the pandemic unfolded. With recovery on the way, the carrier is gradually reinstating pilots‘ basic pay, with the wage cuts to shrink every quarter until salaries are fully restored by the start of 2023.

The airline group’s path to recovery was fast tracked in April, when Singapore significantly relaxed its border restrictions and testing requirements - in line with the city-state’s stance to live with the endemic.

Passenger traffic has taken off dramatically, consequently.

But high demand and elevated fuel prices have led to rising air fares. SIA has been “discussing with our partners” when asked if it would, like Cathay Pacific, offer a “buy now pay later” programme.

Opening the lounges on Monday, Transport Minister S Iswaran said: “The timing of the opening of these lounges is significant and salient. It occurs just as SIA is emerging, severely tested, but ever resilient from the toughest crisis in its history... (The opening) is a happy occasion and importantly a harbinger of a resilient and thriving SIA, our Changi aviation hub and an encouraging future for the aviation sector.”

The 4 lounges at Changi Airport Terminal 3 with 30 per cent added space and seats post-revamp have a total capacity to host around 1,150 flyers. The facilities are open to the carrier’s most premium class, first class, and business class customers, as well as its premium frequent flyers and those of the airline alliance, Star Alliance.

SIA share price rose 1 Singapore cent to close at S$5.51 on Monday.