SIA's F1 Sponsorship at Opportune Time
Singapore Airlines' agreement to be the title sponsor of the Formula One Singapore Grand Prix comes at an opportune time.
Observers say an improving global economic environment should give a boost to the number of attendees at the F1 race weekend, bolstering the carrier's bottom line.
Apart from the roar of Formula 1 engines in September this year.
There will also be the rumble of jumbo jets.
Singapore Airline's chief executive Goh Choon Phong, says the sponsorship will add value to the airline.
"If you look at it our global reach, we do fly to places where there isnt a great F1 market, fan base. Not that they dont know, just that the presence and knowledge about the circuit may not be as some other markets. Obviously Europe is a strong market, australia is strong, china is not as strong for example. So there are always opportunities for us."
It's previously estimated that the race weekend brings in $150 million in tourism receipts.
Chief executive at Spire Research, Leon Perera, says there should be more business generated this year.
"Particularly in Europe where F1 has a very high brand equity and high recall, many of the europeans countries are turning the corner and the american economy is also improving this year compared to last year so I think both the north America and European side we should expect some improvements in terms of the business performance and levels of inbound visitors to the event."
SingTel had been the title sponsor since the inaugural race in 2008.
It had an option to extend the sponsorship until 2017.
But Singapore GP, the race organiser, decided to knock on SIA's door.
Singapore GP Executive Director, Michael Roche.
"We initiated it, but we've always talked with Mr Eccleston and the formula one team that look you have certain airlines involved, you have gulf air and it has worked as a good synergy, marrying a travel partner with a formular one race."
"In any sponsorship, to try and hold them for a lifetime isn't really a realistic thing. but I think Singapore Airlines can expand it more because they are a global brand, whereas SingTel had many diffusion brands that were not under the SingTel brand, that couldn't take it further. But I think it worked really well and I think they will all be back at the race this year."
SingTel said it has been a fantastic partnership with F1 and it welcomed another flagship Singapore brand taking over the reins.
The telco was estimated to have paid $10 to $15 million annually for the sponsorship and Singapore GP said SIA will fork out a similar amount.
-By Travis Teo
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