Singapore Airlines Names Goh as CEO, Replacing Chew
By Chan Sue Ling - Sep 3, 2010 12:15 PM GMT+0200
Singapore Airlines Ltd., the world’s second-largest carrier by market value, named Goh Choon Phong as chief executive officer, replacing Chew Choon Seng, who retires at the end of the year.
Goh, 47, will take charge on Jan. 1, according to a Singapore stock exchange statement today. Goh, currently executive vice president for marketing and regions as well as chairman of the SilkAir regional unit, will join the airline’s board Oct. 1.
The executive will inherit a carrier that’s facing rising competition from Emirates Airline for lucrative business traffic and from AirAsia Bhd. and Jetstar for cost-conscious leisure travelers. He also needs to bring back capacity that was cut during last year’s global recession without swamping demand.
“The challenge is balancing capacity and yields and that’s going to be critical going into 2011,” K. Ajith, an analyst at UOB-Kay Hian Research Pte in Singapore, said before the release. “Singapore Air has done a pretty good job so far, but global economies are slowing and yields will likely remain flat next year.”
Singapore Air rose 0.5 percent to S$15.60 at the close of trading in the city-state today. The announcement was made after the market closed for trading. The shares have gained 4.4 percent this year compared with the 3.6 percent advance for the benchmark Straits Times Index.
Three Degrees
Goh joined Singapore Air in 1990 after getting a masters degree in electrical engineering and computer science from the Massachusetts Institute of Technology, as well as three bachelor degrees, according to the statement.
He has served in senior management positions in Singapore as well as overseas and has worked in the finance, information technology and commercial technology divisions. For four years, he was the president of the company’s cargo unit.
“It’s timely for me to hand over to the next generation and move on,” Chew said in the statement. “The business has regained ground lost during the recession of 2008-9, the company is profitable and on an even keel.”
Chew took a pay cut while maintaining the carrier’s wine budget during the recession. He sampled economy-class meals every month to make sure they met his standards.
That attention to detail helped the airline’s shares double during Chew’s seven years as CEO, even as he grappled with a global recession, record jet-fuel prices, rising competition from budget airlines and outbreaks such as swine flu and severe acute respiratory syndrome, or SARS.
Empty Planes
Chairman Stephen Lee said in July that Singapore Air’s board had looked at “several” candidates to replace Chew, from both within and outside the company.
Chew took over from Cheong Choong Kong in June 2003 when the deadly SARS virus emptied planes. He cut capacity and labor costs to help the carrier cope with the slump. He took similar steps last year after business travel plunged amid the global recession, helping the carrier avoid its first annual loss in two decades.
The airline reported its third straight quarterly profit in the three months ended June as the global economic rebound revived travel demand. Chew led Singapore Air to a record S$2.13 billion profit in the year ended in March 2007. In October that year, he introduced the Airbus SAS A380 superjumbo, making Singapore Air the first carrier to fly the world’s biggest passenger jet.
“It’s a loss for the industry because Chew has contributed a lot to it,” Emirsyah Satar, chief executive officer of PT Garuda Indonesia, said before the announcement.
http://www.bloomberg.com/news/2010-...g-to-take-over-as-chief-starting-in-2011.html
By Chan Sue Ling - Sep 3, 2010 12:15 PM GMT+0200
Singapore Airlines Ltd., the world’s second-largest carrier by market value, named Goh Choon Phong as chief executive officer, replacing Chew Choon Seng, who retires at the end of the year.
Goh, 47, will take charge on Jan. 1, according to a Singapore stock exchange statement today. Goh, currently executive vice president for marketing and regions as well as chairman of the SilkAir regional unit, will join the airline’s board Oct. 1.
The executive will inherit a carrier that’s facing rising competition from Emirates Airline for lucrative business traffic and from AirAsia Bhd. and Jetstar for cost-conscious leisure travelers. He also needs to bring back capacity that was cut during last year’s global recession without swamping demand.
“The challenge is balancing capacity and yields and that’s going to be critical going into 2011,” K. Ajith, an analyst at UOB-Kay Hian Research Pte in Singapore, said before the release. “Singapore Air has done a pretty good job so far, but global economies are slowing and yields will likely remain flat next year.”
Singapore Air rose 0.5 percent to S$15.60 at the close of trading in the city-state today. The announcement was made after the market closed for trading. The shares have gained 4.4 percent this year compared with the 3.6 percent advance for the benchmark Straits Times Index.
Three Degrees
Goh joined Singapore Air in 1990 after getting a masters degree in electrical engineering and computer science from the Massachusetts Institute of Technology, as well as three bachelor degrees, according to the statement.
He has served in senior management positions in Singapore as well as overseas and has worked in the finance, information technology and commercial technology divisions. For four years, he was the president of the company’s cargo unit.
“It’s timely for me to hand over to the next generation and move on,” Chew said in the statement. “The business has regained ground lost during the recession of 2008-9, the company is profitable and on an even keel.”
Chew took a pay cut while maintaining the carrier’s wine budget during the recession. He sampled economy-class meals every month to make sure they met his standards.
That attention to detail helped the airline’s shares double during Chew’s seven years as CEO, even as he grappled with a global recession, record jet-fuel prices, rising competition from budget airlines and outbreaks such as swine flu and severe acute respiratory syndrome, or SARS.
Empty Planes
Chairman Stephen Lee said in July that Singapore Air’s board had looked at “several” candidates to replace Chew, from both within and outside the company.
Chew took over from Cheong Choong Kong in June 2003 when the deadly SARS virus emptied planes. He cut capacity and labor costs to help the carrier cope with the slump. He took similar steps last year after business travel plunged amid the global recession, helping the carrier avoid its first annual loss in two decades.
The airline reported its third straight quarterly profit in the three months ended June as the global economic rebound revived travel demand. Chew led Singapore Air to a record S$2.13 billion profit in the year ended in March 2007. In October that year, he introduced the Airbus SAS A380 superjumbo, making Singapore Air the first carrier to fly the world’s biggest passenger jet.
“It’s a loss for the industry because Chew has contributed a lot to it,” Emirsyah Satar, chief executive officer of PT Garuda Indonesia, said before the announcement.
http://www.bloomberg.com/news/2010-...g-to-take-over-as-chief-starting-in-2011.html