SIA investing to up its game; to offer free unlimited inflight Wi-Fi to all KrisFlyer members

SINGAPORE Airlines (SIA) : C6L 0%is investing to draw customers as competitors are racing to add capacity to capture pent-up air travel demand.

The national carrier is extending free unlimited inflight Wi-Fi to members of its loyalty programme KrisFlyer travelling in economy and premium economy classes from July.

This offering follows the restoration of appetisers from June for its economy-class passengers on medium, long-haul and ultra long-haul flights.

The main course on medium- and long-haul flights for economy class has become about 30 per cent heavier since April 2020, after SIA took on board passengers’ suggestions for heartier meals.

When asked about the impact of all these initiatives on cost or bottom line, SIA’s chief executive Goh Choon Phong said at a media roundtable on Tuesday (May 30) that these are investments SIA makes to continue to enhance the experience for its customers.

The airline’s budget for inflight meals this fiscal year FY2024 to March is 20 per cent higher than that for pre-pandemic. This is based on current projected capacity, which is still lower than pre-pandemic levels.

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The national carrier group spent S$423.9 million on inflight meals including beverages in FY2023, making up 2.8 per cent of total expenditure of S$15.1 billion. For FY2022, the cost amounted to S$89.5 million or 1.1 per cent of total expenses of S$8.2 billion, when it carried far fewer passengers.

“It is a clear case of our approach not being one of cutting costs,” said Goh. “We will look at aspects where we can be more cost efficient if It does not materially affect our customers’ experience with us. So there are areas where we can look to improve processes, workflow and all that to improve productivity.”

SIA drew flak in recent months over its economy class meals. Some passengers saw its trial of paper tableware as a cost-cutting measure while some netizens questioned the food quality in economy class.

Any higher costs stemming from providing the free Wi-Fi, appetisers and bigger main courses would not have an immediate impact on airfares. Air ticket prices, which SIA has always emphasised, are a function of demand and supply.

While high airfares might have contributed to revenue, Goh highlighted that it was the airline group’s agility and nimbleness that allowed it to ramp up capacity promptly to capture pent-up demand and thereby achieve record earnings.

The improved responsiveness, he noted, was a benefit SIA reaped from the transformation it undertook, which included eliminating layers of bureaucracy. The flag carrier is facing keen competition as airlines, especially those from North Asia, are ramping up capacity to make up for lost time when their skies were a no-fly zone for international flights due to the pandemic. Meanwhile, new carriers have muscled in post-pandemic.

SIA said on Wednesday that it will be the first airline to offer the perk to KrisFlyer members across all cabin classes and virtually across the entire aircraft fleet. Only seven out of its 136 aircraft are not Wi-Fi-enabled.

KrisFlyer membership is free.

While a “very small handful” of airlines may be providing unlimited Wi-Fi for free, what sets SIA apart is 95 per cent of its fleet is equipped with Wi-Fi capabilities, said Goh at the roundtable.“It’s not the case (for) many airlines,” added the helmsman, who took over the reins in January 2011.

To enjoy the free Wi-Fi, customers must enter their KrisFlyer membership details at the point of booking through the Manage Booking online option, or at check-in.

In February, KrisFlyer members started to get three hours of free Wi-Fi in premium economy class or two hours in economy class. Surf plans for Wi-Fi – now regarded by many as a utility – could be purchased at prices ranging from US$3.99 for one hour to US$15.99 for the entire flight.

The free unlimited Wi-Fi service was rolled out in February to SIA’s business class customers and members of its higher-tier loyalty programme Priority Passenger Service (PPS) Club while passengers in cabins above business class already enjoy the perk.

At the roundtable, Goh was also asked whether his successor would be parachuted in from outside or promoted from within. However, he did not give a direct answer.

All he said was that SIA is always proud of “having a very strong bench” and his responsibility is to groom as many next-generation leaders as possible for the group, including giving them as broad an exposure as possible.

“As to who eventually succeeds and when that takes place, it is really the board’s decision,” said Goh, who turns 60 this year.