SilkAir has been particularly used by SIA to grow the Group’s network and improve connectivity in the three key markets of China, India and Indonesia. Over the last two years, the Group has grown its operation in China from eight to 13 destinations and from 73 to 116 weekly frequencies. The Group’s India operation has grown from 10 to 11 destinations and from 77 to 96 weekly frequencies while the Indonesian operation has grown from nine to 11 destinations and from 118 to 136 weekly frequencies.
Mr Goh told analysts and media during an 05-Nov-2012 briefing to discuss the SIA Group’s fiscal first half results that the Group has already started to reap financial benefits from the increased collaboration between its two full service units. He said efforts to promote “greater integration and cooperation, particularly at the planning and sales and marketing fronts,” has led to greater connectivity and cost efficiency between SIA and SilkAir.
Cross-selling between Singapore Airlines and SilkAir increased 25% on a year-over-year basis. “That has gone very well and we'll continue to see what else and what more can we do,” Mr Goh said.
He added that “because of that combination and integration, we’re able to provide a higher rate of growth for the combination of the two airlines”. SIA and SilkAir combined grew capacity by almost 6% through the first five months of FY2012/13. While SilKAir has been growing ASKs at a clip exceeding 20%, the ASK growth at ASK mainline has been about 5% so far this year.