SIA cut its non-stop services in 2H

SIA cut its non-stop services in 2H2013 to Los Angeles and Newark, leaving it with only 33 weekly one-stop flights to four North American destinations (New York, Houston, Los Angeles and San Francisco). While SIA is now the largest Asian carrier in Europe, it is only the ninth largest Asian airline in the US market, having slipped in the rankings by several places as it gradually cut its North American operation over the last several years. Previously SIA also served Chicago, Las Vegas and Vancouver.

SIA is at a geographic disadvantage compared to its North Asian (as well as Philippine) peers
SIA is at a geographic disadvantage compared to its North Asian (as well as Philippine) peers, which are able to serve North America non-stop without special ultra long-range aircraft. While its all-premium non-stop services performed relatively well from a load factor standpoint and was an important selling point in the corporate space, SIA discovered it was simply impossible for such long flights to be profitable.

The prospects of a return to non-stops to North America are virtually nil. As a result SIA will have to rely on fifth freedom rights to pursue one-stop growth. But such rights are challenging to secure as markets such as China, which would be ideal transit stops, for SIA are not open. One-stop flights are also costly, putting SIA at a further competitive disadvantage when it comes to the North American market.