Pak minister not to visit India as SAARC meet cancelled

ISLAMABAD: Pakistan commerce minister Makhdoom Amin Fahim has called off a visit to India later this month as a SAARC business meet he was scheduled to attend in New Delhi has been cancelled.

"The commerce minister's visit to India had been approved by the Prime Minister and all arrangements had been completed for the trip."

"However, the 'SAARC Business Leaders Conclave' from February 21-24, which he was scheduled to attend, has been cancelled," an aide to Fahim told PTI.

The aide made it clear that the decision was not linked in any way to recent tensions in bilateral relations.

He was invited to the meet by his Indian counterpart Anand Sharma.

Fahim was also expected to hold talks with Sharma on the sidelines of the regional meet.

Last month, Fahim had called off a scheduled visit to India to attend a partnership summit in Agra in the wake of growing tensions between the neighbours over ceasefire violations along the line of control.

Fahim told reporters he had decided against travelling to India as the business meet would clash with a meeting between a government team and cleric Tahir-ul-Qadri, who recently led a protest to push for electoral reforms.

However, official sources said Fahim's decision was linked to the spike in tensions between India and Pakistan over a string of clashes along the LoC that left two Indian and three Pakistani soldiers dead.

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Southern diet, fried foods, may raise stroke risk

Deep-fried foods may be causing trouble in the Deep South. People whose diets are heavy on them and sugary drinks like sweet tea and soda were more likely to suffer a stroke, a new study finds.

It's the first big look at diet and strokes, and researchers say it might help explain why blacks in the Southeast — the nation's "stroke belt" — suffer more of them.

Blacks were five times more likely than whites to have the Southern dietary pattern linked with the highest stroke risk. And blacks and whites who live in the South were more likely to eat this way than people in other parts of the country were. Diet might explain as much as two-thirds of the excess stroke risk seen in blacks versus whites, researchers concluded.

"We're talking about fried foods, french fries, hamburgers, processed meats, hot dogs," bacon, ham, liver, gizzards and sugary drinks, said the study's leader, Suzanne Judd of the University of Alabama in Birmingham.

People who ate about six meals a week featuring these sorts of foods had a 41 percent higher stroke risk than people who ate that way about once a month, researchers found.

In contrast, people whose diets were high in fruits, vegetables, whole grains and fish had a 29 percent lower stroke risk.

"It's a very big difference," Judd said. "The message for people in the middle is there's a graded risk" — the likelihood of suffering a stroke rises in proportion to each Southern meal in a week.

Results were reported Thursday at an American Stroke Association conference in Honolulu.

The federally funded study was launched in 2002 to explore regional variations in stroke risks and reasons for them. More than 20,000 people 45 or older — half of them black — from all 48 mainland states filled out food surveys and were sorted into one of five diet styles:

—Southern: Fried foods, processed meats (lunchmeat, jerky), red meat, eggs, sweet drinks and whole milk.

—Convenience: Mexican and Chinese food, pizza, pasta.

—Plant-based: Fruits, vegetables, juice, cereal, fish, poultry, yogurt, nuts and whole-grain bread.

—Sweets: Added fats, breads, chocolate, desserts, sweet breakfast foods.

—Alcohol: Beer, wine, liquor, green leafy vegetables, salad dressings, nuts and seeds, coffee.

"They're not mutually exclusive" — for example, hamburgers fall into both convenience and Southern diets, Judd said. Each person got a score for each diet, depending on how many meals leaned that way.

Over more than five years of follow-up, nearly 500 strokes occurred. Researchers saw clear patterns with the Southern and plant-based diets; the other three didn't seem to affect stroke risk.

There were 138 strokes among the 4,977 who ate the most Southern food, compared to 109 strokes among the 5,156 people eating the least of it.

There were 122 strokes among the 5,076 who ate the most plant-based meals, compared to 135 strokes among the 5,056 people who seldom ate that way.

The trends held up after researchers took into account other factors such as age, income, smoking, education, exercise and total calories consumed.

Fried foods tend to be eaten with lots of salt, which raises blood pressure — a known stroke risk factor, Judd said. And sweet drinks can contribute to diabetes, the disease that celebrity chef Paula Deen — the queen of Southern cuisine — revealed she had a year ago.

The National Institute of Neurological Disorders and Stroke, drugmaker Amgen Inc. and General Mills Inc. funded the study.

"This study does strongly suggest that food does have an influence and people should be trying to avoid these kinds of fatty foods and high sugar content," said an independent expert, Dr. Brian Silver, a Brown University neurologist and stroke center director at Rhode Island Hospital.

"I don't mean to sound like an ogre. I know when I'm in New Orleans I certainly enjoy the food there. But you don't have to make a regular habit of eating all this stuff."

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Marilynn Marchione can be followed at http://twitter.com/MMarchioneAP

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Monster Blizzard Takes Aim at Northeast

A blizzard of possibly historic proportions is set to strike the Northeast, starting today and bringing up to 2 feet of snow and strong winds that could shut down densely populated cities such as Boston and New York City.

A storm from the west will join forces with one from the south to form a nor'easter that will sit and spin just off the East Coast, affecting more than 43 million Americans. Wind gusts will reach 50 to 60 mph from Philadelphia to Boston.

"[It] could definitely be a historic winter storm for the Northeast," Adrienne Leptich of the National Weather Service in Upton, N.Y., said. "We're looking at very strong wind and heavy snow and we're also looking for some coastal flooding."

The snow began falling in New York City shortly before 7 a.m. ET. The snow is expected to mix with some sleet and then turn back into snow after 3 p.m.

New York City is expecting up to 14 inches, which is expected to start this morning with the heaviest amounts falling at night and into Saturday. Wind gusts of 55 mph are expected in New York City and Cape Cod, Mass., could possibly see 75 mph gusts.

Boston, Providence, R.I., Hartford, Conn., and other New England cities canceled school today. Boston and other parts of New England could see more than 2 feet of snow by Saturday.

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Beach erosion and coastal flooding is possible from New Jersey to Long Island, N.Y., and into New England coastal areas. Some waves off the coast could reach more than 20 feet.

"Stay off the streets of our city. Basically, stay home," Boston Mayor Tom Menino warned Thursday.

Blizzard warnings were posted for parts of New Jersey and New York's Long Island, as well as portions of Massachusetts, Rhode Island and Connecticut, including Hartford, New Haven, Conn., and Providence. The warnings extended into New Hampshire and Maine.

To the south, Philadelphia was looking at a possible 4 to 6 inches of snow.

Thousands of flights have already been canceled in anticipation of the storm. Amtrak said its Northeast trains will stop running this afternoon.

Bruce Sullivan of the National Weather Service says travel conditions will deteriorate fairly rapidly Friday night.

"The real concern here is there's going to be a lot of strong winds with this system and it's going to cause considerable blowing and drifting of snow," he said.

Parts of New York, still reeling from October's Superstorm Sandy, are still using tents and are worried how they will deal with the nor'easter.

"Hopefully, we can supply them with enough hot food to get them through before the storm starts," Staten Island hub coordinator Donna Graziano said.

New York City Mayor Michael Bloomberg said plows and 250,000 tons of salt were being put on standby.

"We hope forecasts are exaggerating the amount of snow, but you never can tell," Bloomberg said Thursday.

Residents of the Northeast have already begun to hit stores for groceries and tools to fight the mounting snow totals.

The fire department was called in to a grocery store in Salem, Mass., because there were too many people in the store Thursday afternoon trying to load up their carts with essential items.

"I'm going to try this roof melt stuff for the first time," Ian Watson of Belmont, Mass., said. "Just to prevent the ice dam. ... It's going be ugly on that roof."

ABC News' Max Golembo and The Associated Press contributed to this report.

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Violence mars funeral of slain Tunisian opposition leader

TUNIS (Reuters) - Police and mourners clashed at the mass funeral on Friday of secular opposition leader Chokri Belaid, whose assassination has plunged Tunisia deeper into political crisis.

Braving chilly rain, at least 50,000 people turned out to honor Belaid in his home district of Jebel al-Jaloud in the capital, chanting anti-Islamist and anti-government slogans.

It was Tunisia's biggest funeral since the death of Habib Bourguiba, independence leader and first president, in 2000.

Violence erupted near the cemetery as police fired teargas at demonstrators who threw stones and set cars ablaze. Police also used teargas against protesters near the Interior Ministry, a frequent flashpoint for clashes in the Tunisian capital.

Tunisia, cradle of the Arab uprisings, is riven by tensions between dominant Islamists and their secular opponents, and by frustration at the lack of social and economic progress since President Zine al-Abidine Ben Ali was ousted in January 2011.

Belaid's assassination has shocked a country which had hitherto experienced a relatively peaceful political transition.

"The people want a new revolution," shouted mourners in Tunis, who also sang the national anthem.

Crowds surged around an open army truck carrying Belaid's coffin, draped in a red and white Tunisian flag, from a cultural center in Jebel al-Jaloud towards the leafy Jallaz cemetery, as a security forces helicopter flew overhead.

"Belaid, rest in peace, we will continue the struggle," mourners chanted, holding portraits of the politician killed near his home on Wednesday by a gunman who fled on a motorcycle.

Some demonstrators denounced Rachid Ghannouchi, leader of the ruling Islamist Ennahda party. "Ghannouchi, assassin, criminal," they chanted. "Tunisia is free, terrorism out."

Police fired teargas to disperse anti-government protesters throwing stones and petrol bombs in the southern mining town of Gafsa, a stronghold of support for Belaid, witnesses said.

Crowds there had chanted "The people want the fall of the regime", a slogan first used against Ben Ali.

CRADLE OF REVOLT

In Sidi Bouzid, the southern town where the revolt against the ousted strongman began, about 10,000 marched to mourn Belaid and shout slogans against Ennahda and the government.

Banks, factories and some shops were closed in Tunis and other cities in response to a strike called by unions in protest at Belaid's killing, but buses were running normally.

Tunis Air suspended all its flights because of the strikes, a spokesman for the national airline said. Airport sources in Cairo said EgyptAir had canceled two flights to Tunisia after staff at Tunis airport joined the general strike.

After Belaid's assassination, Prime Minister Hamdi Jebali, an Islamist, said he would dissolve the government and form a cabinet of technocrats to rule until elections could be held.

But his own Ennahda party and its secular coalition partners complained they had not been consulted, casting doubt over the status of the government and compounding political uncertainty.

No one has claimed responsibility for the killing of Belaid, a lawyer and secular opposition figure.

His family have blamed Ennahda but the party has denied any hand in the shooting. Crowds have attacked several Ennahda party offices in Tunis and other cities in the past two days.

"Hope still exists in Tunisia," Fatma Saidan, a noted Tunisian actor, told Reuters at Belaid's funeral. "We will continue to struggle against extremism and political violence."

She called for national unity, saying: "We are ready to accept Islamists, but they don't accept us."

SECULAR SYMBOL

While Belaid had only a modest political following, his criticism of Ennahda policies spoke for many Tunisians who fear religious radicals are bent on snuffing out freedoms won in the first of the revolts that rippled through the Arab world.

Secular groups have accused the Islamist-led government of a lax response to attacks by ultra-orthodox Salafi Islamists on cinemas, theatres and bars in recent months.

The economic effect of political uncertainty and street unrest could be serious in a country which has yet to draft a new constitution and which relies heavily on the tourist trade.

Mohamed Ali Toumi, president of the Tunisian Federation of Travel Agencies, described the week's events as a catastrophe that would have a negative impact on tourism, but he told the national news agency TAP no cancellations had been reported yet.

France, which had already announced the closure of its schools in Tunis on Friday and Saturday, urged its nationals to stay clear of potential flashpoints in the capital.

The cost of insuring Tunisian government bonds against default rose to its highest level in more than four years on Thursday and ratings agency Fitch said it could further downgrade Tunisia if political instability continues or worsens.

(For an interactive look at Tunisia please click on http://link.reuters.com/tub85t)

(Additional reporting by Alexander Dziadosz in Cairo and Brian Love in Paris; Editing by Jon Boyle)

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Millions of Chinese migrant workers head home for Lunar New Year

SHANGHAI : In China this year, more than 700 million people are making their way home for the Lunar New Year.

That makes it the biggest human migration in the world.

And according to researchers, it will take another generation before the immense scale of the Lunar New Year exodus will begin to ease.

The majority of those travelling across China to go home for Lunar New Year are the country's migrant workers who have moved to cities like Shanghai to work.

For most of them, the Spring Festival is the only time of the year when they can actually take leave from work to return to their hometowns and families.

It is a consequence of the country's uneven economic development where for many, leaving home is the only way they can earn a better living.

One migrant worker said: "We don't have that many companies at home. The salaries in Shanghai are much higher."

Another noted: "I have no choice. The pay at home is just too low."

To accommodate the annual surge, the central government is spending billions on new railways.

China's new premier Li Keqiang has also made urbanisation a priority policy in an attempt to rein in the annual exodus.

Billions have already been spent to build subsidised apartments to house the new urbanites.

But that calls for new policies to allow migrant workers to convert their residence of birth or hukou to enjoy privileges currently enjoyed by city residents.

This will, in turn, require more measures to provide healthcare for elderly parents of migrant workers, make it easier for migrant children to attend public schools in cities, and compensate farmers for their land.

All this requires more resources and funding.

Hu Shuyun, from the Urban and Population Studies at Shanghai Academy of Social Sciences, said: "Companies hiring migrant workers were paying a lower premium for social security.

"Now the policy requires them to pay them the same amount as they would a city resident, increasing the firms' expenses a few times. Of course, this will cause companies to make adjustments. Low-cost labour-intensive companies like some we see here in Shanghai may then choose to move away."

Already, some local governments are claiming they are facing difficulties raising funds to build the targeted six million units of affordable housing this year.

Researchers have said that despite the challenges, there has been some progress. Policies in education and social security have been changed in some cities to accommodate migrant workers and their families. But there are still millions of other migrant workers who do not fit the criteria spelt out in current policies, they will continue to be part of this annual human migration for years to come.

- CNA/ms

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SC nod to Zakia for protest petition against SIT report

NEW DELHI: The Supreme Court on Thursday allowed Zakia Jafri to file a fresh protest petition in a trial court against the SIT's closure report reportedly giving clean chit to Gujarat chief minister Narendra Modi in a 2002 riot case in Ahmedabad in which her husband and ex-Congress MP was killed.

The apex court directed that the widow of slain leader Ehsan Jafri be supplied with entire report of the inquiry by the Special Investigation Team (SIT) in the 2002 Gulberg Housing Society riot case of Ahmedabad to enable her to file the protest petition.

It clarified that the report shall be supplied without the comments of the SIT chief and she can file a protest petition within two months from the date of receiving the material against the SIT's closure report in the case in which 69 people, including her husband, were killed by a mob on February 28, 2002.

"We clarify that the petitioner (Jafri) is entitled to entire inquiry report placed in sealed envelope before this court on May 12, 2010," a bench comprising justices P Sathasivam, Aftab Alam and Ranjana Prakash Desai said.

It also set aside two orders of the Ahmedabad trial court of July 16 and November 27 of last year.

She had filed an appeal against the orders rejecting her demand for preliminary report filed by AK Malhotra, member of the SIT, in the Supreme Court and accepting the SIT closure report filed on March 13, 2012 in the case respectively.

The bench in its order said that the statement recorded during the inquiry of the complaint filed by Jafri should be treated as the statement recorded under section 161 of the Code of Criminal Procedure which involves examination of witnesses.

It also said that the statements recorded during the inquiry would only be used for taking decision on the closure report filed by the SIT into the case.

The apex court made it clear that "the present order is confined to the case in which the complaint was filed by Zakia on June 8, 2006" in which she had sought inquiry against Modi and others with regard to 2002 riots.

Gujarat's additional advocate general Tushar Mehta told the bench that the state government was not taking adverserial stand in the case. He said six out of the nine cases investigated by the SIT have resulted in conviction.

Senior advocate Raju Ramachandran, who was assisting the court as amicus curaie in the matter, said the widow was entitled for entire material sought by her.

The apex court on September 12, 2011 had passed the order relating to supply of documents to Zakia.

It had also asked the SIT, which probed the riot cases including the Ahmedabad Gulberg Housing Society massacre case in which former Congress MP Jafri had been killed, to forward its final report to the local court.

Zakia has filed the petition challenging the trial court's order rejecting her plea for supply of some documents relating to the investigation in the case including the probe report filed by Malhotra.

She was seeking the documents to file a protest petition against the SIT's closure report in the case.

Zakia contended that the court's refusal to allow her access the documents pertaining to the investigation by the SIT into the case was coming in the way of her filing the protest petition against the closure report.

The court was hearing Zakia's appeal against July 16, 2012 order of the trial court, which had rejected her demand for preliminary report filed by Malhotra in the Supreme Court after the inquiry into her complaint against Modi and others with regard to 2002 riots.

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New whooping cough strain in US raises questions

NEW YORK (AP) — Researchers have discovered the first U.S. cases of whooping cough caused by a germ that may be resistant to the vaccine.

Health officials are looking into whether cases like the dozen found in Philadelphia might be one reason the nation just had its worst year for whooping cough in six decades. The new bug was previously reported in Japan, France and Finland.

"It's quite intriguing. It's the first time we've seen this here," said Dr. Tom Clark of the Centers for Disease Control and Prevention.

The U.S. cases are detailed in a brief report from the CDC and other researchers in Thursday's New England Journal of Medicine.

Whooping cough is a highly contagious disease that can strike people of any age but is most dangerous to children. It was once common, but cases in the U.S. dropped after a vaccine was introduced in the 1940s.

An increase in illnesses in recent years has been partially blamed on a version of the vaccine used since the 1990s, which doesn't last as long. Last year, the CDC received reports of 41,880 cases, according to a preliminary count. That included 18 deaths.

The new study suggests that the new whooping cough strain may be why more people have been getting sick. Experts don't think it's more deadly, but the shots may not work as well against it.

In a small, soon-to-be published study, French researchers found the vaccine seemed to lower the risk of severe disease from the new strain in infants. But it didn't prevent illness completely, said Nicole Guiso of the Pasteur Institute, one of the researchers.

The new germ was first identified in France, where more extensive testing is routinely done for whooping cough. The strain now accounts for 14 percent of cases there, Guiso said.

In the United States, doctors usually rely on a rapid test to help make a diagnosis. The extra lab work isn't done often enough to give health officials a good idea how common the new type is here, experts said.

"We definitely need some more information about this before we can draw any conclusions," the CDC's Clark said.

The U.S. cases were found in the past two years in patients at St. Christopher's Hospital for Children in Philadelphia. One of the study's researchers works for a subsidiary of Johnson & Johnson, which makes a version of the old whooping cough vaccine that is sold in other countries.

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JournaL: http://www.nejm.org

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Ex-LA Cop Sought in Shootings of 3 Cops, 2 Slayings

Police in Southern California say they suspect that a fired cop is connected to the shootings -- one fatal -- of three police officers this morning, as well as the weekend slayings of an assistant women's college basketball coach and her fiancé in what cops believe are acts of revenge against the LAPD, as suggested in the suspect's online manifesto.

Former police officer Christopher Jordan Dorner, 33, who's a U.S. Navy reservist, has been publically named as a suspect in the killings of Monica Quan, 28, and her 27-year-old fiancé, Keith Lawrence, Irvine police Chief David L. Maggard said at a news conference Wednesday night.

"We are considering him armed and dangerous," Lt. Julia Engen of the Irvine Police Department said.

Police say Dorner shot at four officers in two incidents overnight, hitting three of them: one in Corona, Calif., and two in Riverside, Calif.

Sgt. Rudy Lopez of the LAPD said two LAPD officers were in Corona and headed out on special detail to check on one of the individuals named in Dorner's manifesto. Dorner allegedly grazed one of them but missed the other.

The Riverside Police Department said two of its officers were shot before one of them died, KABC-TV reported. The extent of the other's injuries is unclear.
Police suspected a connection to Dorner.

"They were on routine patrol stopped at a stop light when they were ambushed," Lt. Guy Toussant of the Riverside police department said.

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A badge and identification belonging to Dorner have been found in San Diego, according to San Diego police Sgt. Ray Battrick. Dorner's LAPD badge and ID were found by someone near the city's airport, and turned in to police overnight, The Associated Press reported.

Police around Southern California are wearing tactical gear, including helmets and guns across their chests. The light-up signs along California highways show the license plate number of Dorner's car, and say to call 911 if it is seen. The problem, police say, is that they believe Dorner is switching license plates on his car, a 2005 charcoal-gray Nissan Titan pickup truck.

Lawrence was found slumped behind the wheel of his white Kia in the parking lot of their upscale apartment complex in Irvine Sunday and Quan was in the passenger seat.

"A particular interest at this point in the investigation is a multi-page manifesto in which the suspect has implicated himself in the slayings," Maggard said.

Police said Dorner's manifesto included threats against members of the LAPD. Police say they are taking extra measures to ensure the safety of officers and their families.

The document, allegedly posted on an Internet message board this week, apparently blames Quan's father, retired LAPD Capt. Randy Quan, for his firing from the department.

"Your lack of ethics and conspiring to wrong a just individual are over," he allegedly wrote.

One passage from the manifesto reads, "I will bring unconventional and asymmetrical warfare to those in LAPD uniform whether on or off duty."

"I never had the opportunity to have a family of my own," it reads. "I'm terminating yours."

Dorner was with the department from 2005 until 2008, when he was fired for making false statements.

Randy Quan, who became a lawyer in retirement, represented Dorner in front of the Board of Rights, a tribunal that ruled against Dorner at the time of his dismissal, LAPD Capt. William Hayes told The Associated Press Wednesday night.

According to documents from a court of appeals hearing in October 2011, Dorner was fired from the LAPD after he made a complaint against his field-training officer, Sgt. Teresa Evans, saying in the course of an arrest she had kicked a suspect who was a schizophrenic with severe dementia.

After an investigation, Dorner was fired for making false statements.

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Khamenei rebuffs U.S. offer of direct talks

DUBAI (Reuters) - Iran's highest authority, Ayatollah Ali Khamenei, on Thursday slapped down an offer of direct talks made by U.S. Vice President Joe Biden this week, saying they would not solve the problem between them.

"Some naive people like the idea of negotiating with America, however, negotiations will not solve the problem," Khamenei said in a speech to officials and members of Iran's air force carried on his official website.

"If some people want American rule to be established again in Iran, the nation will rise up to face them," he said.

"American policy in the Middle East has been destroyed and Americans now need to play a new card. That card is dragging Iran into negotiations."

Khamenei made his comments just days after Joe Biden said the United States was prepared to meet bilaterally with the Iranian leadership. "That offer stands but it must be real and tangible," Biden said in a speech in Munich.

With traditional fiery rhetoric, Khamenei lambasted Biden's offer, saying that since the 1979 revolution the United States had gravely insulted Iran and continued to do so with its threat of military action.

"You take up arms against the nation of Iran and say: 'negotiate or we fire'. But you should know that pressure and negotiations are not compatible and our nation will not be intimidated by these actions," he added.

Relations between Iran and the United States were severed in 1979 after the overthrow of Iran's pro-western monarchy and diplomatic meetings between officials have since been very rare.

ALL OPTIONS STILL "ON THE TABLE"

Currently U.S.-Iran contact is limited to talks between Tehran and a so-called P5+1 group of powers on Iran's disputed nuclear program which are to resume on February 26 in Kazakhstan.

Israel's Deputy Prime Minister Dan Meridor said he was skeptical the negotiations in Almaty could yield a result, telling Israel Radio that the United States needed to demonstrate to Iran that "all options were still on the table".

Israel, widely recognized to be the only nuclear power in the Middle East, has warned it could mount a pre-emptive strike on Iranian atomic sites. Israel sees its existence as directly threatened by the prospect of an nuclear-armed Iran, given Tehran's refusal to recognize the existence of the Jewish state.

"The final option, this is the phrasing we have used, should remain in place and be serious," said Meridor.

"The fact that the Iranians have not yet come down from the path they are on means that talks ...are liable to bring about only a stalling for time," he said.

Iran maintains its nuclear program is entirely peaceful but Western powers are concerned it is intent on developing a weapons program.

Many believe a deal on settling the nuclear issue is impossible without a U.S.-Iranian thaw. But any rapprochement would require direct talks addressing many sources of mutual mistrust that have lingered since Iran's 1979 Islamic Revolution and the subsequent U.S. embassy hostage crisis in Tehran.

Moreover, although his re-election last November may give President Barack Obama a freer hand to pursue direct negotiations, analysts say Iran's own presidential election in June may prove an additional obstacle to progress being made.

(Additional reporting by Dan Williams; Editing by William Maclean and Jon Boyle)

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Possible SIA revamp on the cards

SINGAPORE: As the aviation industry continues to be plagued by rising fuel costs and weakness in the global economy, Singapore Airlines has seen its profits being squeezed as more travellers turn to cheaper alternatives.

The airline, which is Asia's second largest by market capitalisation, cautioned on Thursday that loads and yields for its passenger and cargo businesses are expected to remain under pressure.

In an effort to further slash costs, SIA has also recently reduced its cockpit crew.

Competition from gulf carriers and budget airlines has significantly affected the profits of legacy carriers. With costs of jet fuel set to rise even further, analysts say it is imperative for legacy carriers such as SIA to revamp itself, either with new product offerings or new destinations.

"SIA has always done exceptionally well with its offering of premium products... But perhaps it's time for them to re-look the premium economy segment... which is an area where many other competitors are looking at," said Shukor Yusof, an aviation analyst with Standard & Poor's.

"If they were to come up with something that would entice passengers that are currently flying low cost carriers and if they can manage the fares in a way that would attract large numbers on board, then it would work," he said.

Besides SilkAir, SIA has also started its long-haul low-cost offshoot Scoot, in an attempt to glean some profits from the low cost carrier segment.

However some believe SIA should continue to pump money to protect its premium seats segment.

"Their premium sector is what holds them up. They've high yielding passengers and if they try to reduce that, they will lose them to other premium carriers like Cathay, Qantas, (or) Emirates," said Shashank Nigam, CEO of Simpliflying.

"Singapore airlines, while they're part of Star Alliance, they're not very close to their members so certainly after having sold (their) Virgin Atlantic stake, they should be looking at other partnerships to enhance passenger experience," he added.

Besides teaming up with Emirates, competitor Qantas has also announced its intention to form stronger links to the key hubs of Singapore and Hong Kong, paving the way for more head-on competition with SIA.

Analysts say some of these enhancements should include more technology updates to appeal to the well-connected traveller.

- CNA/jc

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