Singapore Airlines Limited: Case Study: Singapore Airlines
Singapore Airlines is the top 15 carriers worldwide company in revenue passenger kilometers terms and ranked top 10 in the world for international passengers carried. Singapore Airlines profits have decreased over the …show more content…
It flights to 63 cities throughout the world. SIA carried 17.2 million people across its network and is able to generate significant revenues because of its operations across all the geographic regions. Thus, this evenly and diversified spread revenue reduces its risks as SIA does not need to rely on any one geographic market for a majority of its revenues.
-Remarkable reputation as a service leader
Singapore Airlines has remarkable reputation as a service leader in the airline industry as well as a company that provides extensive investment in training to develop its staff holistic manner. Which eventually becomes its asset. SIA has consistently delivered cost-effective service for more than three decades through strategic management such as motivating employees through recognition and rewards, extensive investment in retaining and training and strict selection and recruitment processes (Heracleous, L et al. N/A).
-Young aircraft fleet
Singapore Airlines continuously benefits from a young fleet as it has low fuel burn per-seat-kilometer and low carbon emissions. The average of fleet operated by Singapore Airlines is six years and two …show more content…
A. Huselid et al. 1997).
-Singapore Airlines is one of the world’s most luxurious and expensive airlines
Singapore Airlines is one of the world's most luxurious and expensive airlines and it introduced a SGD 32,000 Suites class in 2008 (Phong, G, 2015). This Suites class in SIA is the most luxurious among means of air travel and most expensive First class traveling packages that are currently available. Therefore, it has very limited target markets and low middle class people just dream of traveling via SIA
-Reliance on International Traffic
The local population in Singapore stands less than 6 billion only. There is no such domestic flight available because of the size of the country. Hence, the domestic market is very limited and Singapore Airlines has to rely on passengers from foreign countries and international travelers.
-Stringent policy and high tax in Changi Airport
High penalty for delay take off and high tax in Changi Airport could be the weakness for Singapore Airline as those policies lead operational cost high and make customers pay higher compared to flight tickets from other airport.