SIA returns to New York with non-stop service from Nov 9

It sees an opportunity to grow both its passenger, cargo operations out of JFK

Nisha Ramchandani
Published Tue, Oct 20, 2020 · 09:50 PM

Singapore

SINGAPORE Airlines (SIA) will return to New York from Nov 9 with non-stop flights to New York's John F Kennedy International Airport as it seeks to rebuild its network.

At over 18 hours long, the new service is the world's longest, and will be operated thrice weekly. The flag carrier's non-stop service to Newark Liberty International Airport in New Jersey previously held that title, but the airline halted the route in March as the pandemic paralysed travel. It operates non-stop services to Los Angeles, but has suspended its direct service to San Francisco. SIA also served JFK through a one-stop service via Frankfurt.

In response to queries, a spokesperson for the airline said: "The SIA Group will continue to gradually deploy capacity to match the demand for air travel, and resume services to key points across its network as it recovers from the impact of Covid-19. SIA remains firmly committed to the US market and to restoring our presence in key points, such as New York, as conditions permit."

The spokesperson added that the airline sees an opportunity to grow both its passenger and cargo operations out of JFK International Airport. Transfer passengers transiting through Changi Airport are also expected to support the service.

The new direct flight will be operated using SIA's Airbus A350-900 aircraft which has a three class configuration of 42 business class, 24 premium economy and 187 economy class seats.

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The airline expects "significant cargo demand" across companies from various industries in the New York metro area, including pharmaceuticals, e-commerce and technology firms as the new service offers the only non-stop air cargo link between the north-eastern part of the US and Singapore. Singapore serves as a regional distribution hub for many major US firms.

Independent analyst Brendan Sobie of Sobie Aviation sees the move as a strategic one as SIA tries to resume as much of its network as possible, particularly important markets. Use of the A350-900s instead of the A350-900 Ultra Long Range aircraft may mean having to limit the number of passengers in order to also carry cargo due to restrictions on payload.

While he expects passenger load factor on the route to be under 20 per cent - albeit premium passengers - "it's about trying to restore connectivity in main markets", he said. "SIA would be keen to resume New York as soon as possible to protect their long-term position. I expect San Francisco is the other important strategic market that will be resumed next."

The airline is also expected to focus on carrying high-value cargo, with the switch from Newark to JFK likely due to JFK being better for cargo than the former. Still, it would be "very difficult" to operate the route profitably given the headwinds in the current environment, Mr Sobie reckons.

SQ24 will depart Changi Airport on Mondays, Wednesdays and Saturdays at 0225, and SQ23 will depart from JFK at 2230 on Mondays, Wednesdays and Fridays.

Mr Sobie doesn't rule out SIA returning to Newark post-Covid either. "There's a good chance they will again cover New York with two airports rather than one."

Singapore residents are allowed to enter the United States but have to serve a 14-day stay-home-notice (SHN) at a dedicated SHN facility as well as take a Covid test when they return to Singapore.

Shares in SIA closed at S$3.51, down two cents, on Tuesday.

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