1.0 Introduction – Juney
Singlobal started off as a regional airline with a full economy class facility which gradually venture into business class as technology allow fleets to fly further and more facilities in the fleet. (to incl ratio of economy and biz class?)
Singlobal first started off with Korea serving as the main airport. The airline adopted the “hub-and-spoke” business strategy to route their plane traffic. With this strategy in plan, a central airport that flights will be routed through was selected as a hub and passengers will take on routes that planes direct out of the hub through spoke. In this strategy, the airline decided to set up its’ base in Bangkok, Thailand and expanded its’ route to all neighbouring countries. The “hub-and-spoke” …show more content…
Its first hub at the Suvarnabhumi Airport (BKK) is located at Bangkok, Thailand. Reasons for choosing BKK as hub includes the high number of tourist and the low airport expenses as the cost per slot, offices, counter were cheaper as compared to other major cities in the region. From BKK, SingGlobal will be able to reach out to smaller cities around the region at a significantly lower price and is even able to monopolise some of the route (GZ 1). However, SingGlobal recognize the need for diversification. By relying on Bangkok as a base may result in devastating impact on SingGlobal’s profit should Thailand is affected by external market environment. This led to the decision to set up the second base in McCarran International Airport (LAS) in Las Vegas, USA, which allows SingGlobal to continue to expand its reach to small cities …show more content…
As the plane gets older, it is inevitable that the tangibles such as interior décor and devices begin to deteriorate. There is a need to renovate the airplane regularly to bring everything up to date and ensure that faulty machine parts and amenities are replaced, to raise passenger satisfaction level.
Since airlines have high fixed costs including overheads, it would be sensible to look in the long term. For instance, instead of buying new planes, operating with old planes by investing profits into the maintenance of existing planes can ensure good passenger satisfaction too after the technology are equipped to a more advanced level. Planes will only be disposed of upon hitting the retirement age.
Moreover, as mentioned previously, maintenance depots were also built to decrease maintenance costs by 30%, and save costs as SingGlobal Air operate a lot of airplanes out of the airport. In this way, profits can increase as expenses decreases.
3.4 Advertising -
Singlobal started off as a regional airline with a full economy class facility which gradually venture into business class as technology allow fleets to fly further and more facilities in the fleet. (to incl ratio of economy and biz class?)
Singlobal first started off with Korea serving as the main airport. The airline adopted the “hub-and-spoke” business strategy to route their plane traffic. With this strategy in plan, a central airport that flights will be routed through was selected as a hub and passengers will take on routes that planes direct out of the hub through spoke. In this strategy, the airline decided to set up its’ base in Bangkok, Thailand and expanded its’ route to all neighbouring countries. The “hub-and-spoke” …show more content…
Its first hub at the Suvarnabhumi Airport (BKK) is located at Bangkok, Thailand. Reasons for choosing BKK as hub includes the high number of tourist and the low airport expenses as the cost per slot, offices, counter were cheaper as compared to other major cities in the region. From BKK, SingGlobal will be able to reach out to smaller cities around the region at a significantly lower price and is even able to monopolise some of the route (GZ 1). However, SingGlobal recognize the need for diversification. By relying on Bangkok as a base may result in devastating impact on SingGlobal’s profit should Thailand is affected by external market environment. This led to the decision to set up the second base in McCarran International Airport (LAS) in Las Vegas, USA, which allows SingGlobal to continue to expand its reach to small cities …show more content…
As the plane gets older, it is inevitable that the tangibles such as interior décor and devices begin to deteriorate. There is a need to renovate the airplane regularly to bring everything up to date and ensure that faulty machine parts and amenities are replaced, to raise passenger satisfaction level.
Since airlines have high fixed costs including overheads, it would be sensible to look in the long term. For instance, instead of buying new planes, operating with old planes by investing profits into the maintenance of existing planes can ensure good passenger satisfaction too after the technology are equipped to a more advanced level. Planes will only be disposed of upon hitting the retirement age.
Moreover, as mentioned previously, maintenance depots were also built to decrease maintenance costs by 30%, and save costs as SingGlobal Air operate a lot of airplanes out of the airport. In this way, profits can increase as expenses decreases.
3.4 Advertising -