Singapore Air loses as flyers swap Champagne for cheap seats

SIA, first in the world to put a double bed, mattress and duvet on a commercial plane, posted a surprise loss at its marquee brand for the first time in three years. Intense competition from Emirates, Qatar Airways and Etihad, which offer services such as a personal butler and shower on board aircraft, has crushed profits at SIA. To fight back, Singapore Air CEO Goh Choon Phong is boosting borrowings to fund a record $53b order for new planes. “Evidently, the pressure of the Middle Eastern carriers and the lack of a domestic market is impacting, similar to Cathay,” Joshua Crabb, head of Asian equities at a unit of Old Mutual Plc, said. Singapore Air group -- which includes brand Singapore Air, a regional airline and two budget carriers -- announced a surprise net loss of S$138.3m in the three months ended March. The company, which took a previously-announced provision of S$132 million in the quarter relating to its cargo unit, said Friday it was re-integrating the business into the main airline. Brand Singapore Air had an operating loss of S$41m in the quarter while Budget Aviation Holdings - which operates the two low-fare carriers Scoot and Tiger -- had a profit of S$22m at the operating level. The loss at the main airline is the first since Q4 of fiscal year 2014. “A dedicated transformation office is conducting a wide-ranging review, encompassing network and fleet, product and service, and organisational structure and processes, to better position the group for long-term sustainable growth across its portfolio of full-service and budget airline operations,” Singapore Air said.<br/>