Singapore Airlines 2015 Annual Report Download - page 16

The SIA Group has come a long way over the decades.
In a year in which Singapore celebrates its 50th birthday,
we can be proud of the role we have played in contributing
to the nation’s development.
We fully intend to contribute in a positive manner over the next
50 years as well. As a result, we have been investing in strategic
initiatives to ensure the Group has a bright future.
The past financial year saw many of these initiatives come to
fruition, in the main areas where we have identified challenges,
namely: competition from other full-service airlines, competition
from low-cost carriers, and expanding our reach beyond our
home base. Few airlines can claim to have done so much to
address challenges in as short a time as the SIA Group has.
During the last financial year, the Parent Airline continued
to invest heavily in its products and services to retain its
leadership position. New aircra continued to enter the fleet,
work began to retrofit Boeing 777-300ERs with the newest cabin
products, and there was continued investment to bring new
designs to SilverKris lounges around the world. Development
work also continued on the new Premium Economy Class,
which will enter service in August this year, while there has
been much investment in enhancing digital capabilities,
alongside investment in new, industry-leading customer
service initiatives.
At the same time SIA continued to build upon its global
network during the last financial year, including through new
services by subsidiary airlines and through new partnerships
with other airlines. This work will continue in the year ahead
as we maintain our focus on the further development of the
Group’s global network and on contributing to growth of the
Singapore hub.
There have also been many developments in the low-cost side
of our business, to further strengthen our portfolio of brands,
in which we have investments in both full-service and budget
segments of the market. Scoot has continued to expand its
route network and recently took delivery of its first Boeing 787s.
It has also been progressively stepping up its co-operation with
Tigerair, in which SIA now has a majority stake. Similarly to
how Singapore Airlines and SilkAir provide feed to each other
“ Singapore Airlines
continued to build upon
its global network during
the last financial year,
including through new
services by subsidiary
airlines and through
new partnerships with
other airlines.”
Chairman’s Letter
to Shareholders
OPERATING PROFIT
$410M
an increase of $151 million
GROUP NET PROFIT
+2.5%
for FY2014/15
14 STRATEGY | Chairman’s Letter to Shareholders |