Airline maps plans for growth

Monday, Jan. 20, 2003 | 11:15 a.m.

SUN STAFF AND WIRE REPORTS

Chew Choon Seng capped a three-decade career at Singapore Airlines Ltd. by becoming chief executive. The timing could have been better: Airlines lost $19 billion on overseas routes in two years, fuel prices are surging and cut-price rivals are thriving.

The 56-year-old mechanical engineer inherits a drive to keep expanding abroad as competition heats up closer to home. His task: turn Singapore Air into "a global group of airlines and airline-related companies," said spokesman Rick Clements.

Chew, who earned a degree at London's Imperial College, doesn't have much to build on. Now head of finance, he takes over from Cheong Choong Kong after aborted attempts to buy stakes in India, Taiwan, Australia and South Africa. Virgin Blue Airlines Pty said last week it will buy as many as 50 planes capable of flying to Singapore and other Asian destinations.

"They've tried to tread where few others have, and taking equity in other airlines has been rather tough worldwide," said Peter Harbison, managing director at the Centre for Asia Pacific Aviation in Sydney. "In the meantime, they have got to make sure their share price holds up and they make profits."

Singapore Airlines entered the Las Vegas market last August when the company inaugurated nonstop service between McCarran International Airport and Hong Kong.

The company continues to operate the flight three times a week with Boeing 777 jets with 285 seats.

James Boyd, a spokesman for Singapore Airlines in Los Angeles, said the Las Vegas flight continues to perform well for the carrier. He said ticket sales in Asia have been strong, but that the company is trying to increase sales of tickets in Southern Nevada.

"We came off a really strong high season," Boyd said. "The challenge for us has been to encourage Las Vegans to travel to Southeast Asia and that continues to be one of our big pushes."