much stronger Singapore Dollar versus key travel markets such as India and Indonesia, affecting inbound tourist travel to Singapore. Continued political uncertainty in Thailand and, more recently, reduced Chinese demand for travel to Southeast Asia has also dampened passenger traffic to and from these key markets.
Reflecting the intense competition to fill seats in a tight aviation landscape and the weakening of major revenue-generating currencies, airlines in the region have also observed lower yields despite growth in passenger carriage. This has resulted in reduced margins.
Lee Seow Hiang, CEO, CAG said, “CAG values the deep partnerships we have with our airline partners and we are cognisant of the market conditions faced by them. While we cannot iron out the volatilities of the industry cycle, we believe that GAIN will provide helpful temporary cost relief as airlines implement the necessary measures needed to adjust to the evolving market environment. At the same time, we believe the programme provides encouraging opportunities for our partners to collaborate with us to explore new ideas and initiatives – whether to stimulate travel demand or to boost productivity – that will collectively position us strongly for the next wave of growth.”