Singapore Airlines (SQ, Singapore Changi) is contemplating establishing hubs outside of Singapore to reduce its dependency on the purely international market at Singapore Changi, which proved to be a huge liability during the COVID-19 pandemic, Chief Executive Goh Choon Phong told Bloomberg.

"We recognise that not having a domestic market means challenges. That's why we have a multi-hub strategy. We're setting up an external hub where we hope to be able to participate in the growth of that market," Goh said.

He did not elaborate on where the "external hub" could be located, although he hinted that any such expansion would entail equity investment in other airlines. Due to the regulatory environment in Asia, an application for extensive fifth-, seventh-, or ninth-freedom traffic rights would likely be an uphill battle for the carrier.

Currently, Singapore Airlines Group's only foreign venture is in India, where the holding owns a 49% stake in Vistara (UK, Delhi Int'l). The remaining 51% stake is owned by Tata Sons. After the Indian conglomerate acquired Air India (AI, Mumbai Int'l), sources touted the potential merger of Vistara into the flag carrier, even though no plans were ever openly discussed. Goh said Singapore Airlines remains committed to its Indian airline.

Source : www.ch-aviation.com