Singapore Airlines: Case Study: Singapore Airlines Ltd)
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1.0 Introduction – Singapore Airlines Ltd
Singapore Airlines (SIA) once again is hitting the headlines with plans to restart the world’s longest commercial flight between Singapore and Los Angeles, and Newark with the fuel efficient ultra-long-range Airbus-350s in 2018; its new First Class and Business Class designs launched on its next batch of 5 A380 superjumbos in 2017.
In 2013, SIA made a strategic decision to cut long haul direct flights to New York & Los Angeles after high fuel charges and weak passenger load factor (PLF) made these destinations commercially unviable. Whilst the Airbus-380s, world’s biggest passenger jet is pivotal in serving flights to major cities like London, Paris, Sydney & New Delhi, it’s ultra long haul flights…show more content… The SIA group, on top of their parent airline company, also owns three more airline entities: SilkAir which schedules regional flights to secondary cities, while Scoot and Tigerair focuses on the low-cost carrier (LCC) sector. SIA Group operates in South West Pacific, Europe, the Americas, East & West Asia, and Africa. SIA which is headquartered in Singapore is 56% owned by the Singapore Government’s investment arm, Temasek Holdings employed 23, 963 people as of March…show more content… Having a related diversification comes with ready leverage & control on resources; at times inevitably its subsidaries’ challenges.
1.1 Singapore Airlines’ Strategy
In a highly unforgiving & competitive industry like air transportation services, a miscalculated strategy would be means dire consequences like that of the ‘all business class’ EOS, Silverjet & Maxjet. (Thompson & Martin, 2010) continues to theorise that it’s insufficient to have solely sound management but good change management & leadership that entails adaptability & innovation.
While many struggled to stay afloat, Singapore Airlines (SIA), the illustrous flagship carrier of Singapore with its strategically-positioned hub at Singapore Changi Airport have consistently remained profitable and resilient amidst challenging social, environmental & economic factors: 1997 Asian Financial Crisis, 2003 Bird Flu, SARS epidemic during Nov 2007 – July 2008, fluctuation of oil prices, Recession during Dec 2007 to June 2009 (Ro,