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Introduction of singapore airlines
Introduction of singapore airlines
Introduction of singapore airlines
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History
Singapore Airlines, one of the best airlines in the world, began with the incorporation of Malayan Airways on May 1st, 1947. This incorporation was made by the Ocean Steamship Company of Liverpool, the Straits Steamship Company of Singapore and Imperial Airways. On April 2nd, 1947, a Malayan Airways flight was chartered by five businessmen from Singapore’s Kallang Airport to Kuala Lumpur, and the flight was made using an Airspeed Consul twin- engine aircraft. After this chartered flight, on May 1st, 1947, the same aircraft type realized three weekly schedules flights from Singapore Kallang Airport to Kuala Lumpur and the states Penang and Ipoh.
Malayan Airways continued its expansion during the end of the 1940s and the rest of the 1950s. Its expansion included the acquisition of more planes and the addition of more routes. During this time, British airlines and Qantas Empire Airways provided technical assistance, as well the support in joining IATA. By the year of 1955, the fleet of Malayan Airways had grown including a large number of Douglas DC-3s, and the company went public in 1957. The incorporation of more DC-3s meant that flights would be more comfortable and faster, and services were expanded to new destinations such as Indonesia, Vietnam, Burma (now Myanmar), North Borneo (Sabah) and Sarawak. In addition, inflight refreshments were improved by adding sandwiches, biscuits and a choice of hot and cold drinks. Nevertheless, when Malaya, Singapore, Sabah and Sarawak formed the Federation of Malaysia, in September 1963, the airline changed its name to Malaysian Airways.
In the view of political developments, and after Singapore separated from the Federation, the airline changed its name again in May 1966; this time t...
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...ancial crisis, when frequencies had to be reduced and promotions had to be offered in response to a sudden drop in demand, it is virtually impossible to make money on the routes. Eliminating the flights and phasing out the A340-500s should instantly improve the profitability of SIA’s long-haul operation.
Newark has been served daily since Jan-2010, ending a period of about a year in which the service was only operated with five weekly frequencies. The Los Angeles-Singapore service was restored to daily in late 2010 but was cut back to five weekly flights in May-2011 and has since stayed at that level. Both services were initially offered in a two-class configuration with premium economy and business but SIA opted to reconfigure its A340s in 2008 to all-business after discovering it could not make money on such long flights with an economy or premium economy product.
Albers, S. B. (2009, March 13). crisis of Qantas. Retrieved May 14, 2014, from Qantas crisis: http://wenku.baidu.com/view/31572f48cf84b9d528ea7a56
Qantas has undertaken significant changes over the last decade to cope with internal and external factors such as the terrorist attacks on September 11, 2001 which effectively reduced the demand for international travel. Qantas initially reduced its international travel flying capacity by 11%. Fortunately, the collapse of Ansett which halted domestic competition in the Australian aviation industry which had dropped the bidding price war for consumer finances, softened the blow on September 12, 2001.
According to the International Air Transport Association, 2001 was only the second year in the history of civil aviation in which international traffic declined. Overall, it is believed that the IATA membership of airlines collectively lost more than US$12 billion during this time (Dixon, 2002).
1- Issues The main issue of this case is the lack of profits of the airline industry, an industry that should be more than profitable due to the large amount of customers, the necessity of using airlines’ services and the high prices charged by most of these airlines. What we are going to deal with is, why is this happening? And how is American airlines dealing with this problem?. To be able to discuss how American airlines wants to regain profitability, we must identify and analyse different issues such as, the company’s background, the airline industry as a whole, the demand for air travel, the marketing strategies, the distribution systems, pricing policies etc.
Airline and travel industry profitability has been strapped by a series of events starting with a recession in business travel after the dotcom bust, followed by 9/11, the SARS epidemic, the Iraq wars, rising aviation turbine fuel prices, and the challenge from low-cost carriers. (Narayan Pandit, 2005) The fallout from rising fuel prices has been so extreme that any efficiency gains that airlines attempted to make could not make up for structural problems where labor costs remained high and low cost competition had continued to drive down yields or average fares at leading hub airports. In the last decade, US airlines alone had a yearly average of net losses of $9.1 billion (Coombs, 2011).
Tom, Y. (2009). The perennial crisis of the airline industry: Deregulation and innovation. (Order No. 3351230, The Claremont Graduate University). ProQuest Dissertations and Theses, , 662-n/a. Retrieved from http://search.proquest.com/docview/304861508?accountid=8364. (304861508).
Kingfisher Airlines (KFA) was founded by Vijay Malaya and he is the chairman of United Breweries group (UB group) in the year 2003. Its first airplane was launched from Mumbai to Delhi in 9th may 2005. It started as a premium business class airline company. The airlines have a tag line “Fly the good times”. At the launch of airline, Vijay Malaya said “we are committed to achieving our ambition of making Kingfisher Airlines, India’s largest private airline both in capacity and market share. The airline ushered in a new era of luxury in India’s domestic aviation sector and its brand new aircraft with stylish red interiors, and smartly dressed crew and ground staff. Kingfisher was the first Indian airline to have in-flight entertainment (IFE) systems”. (Malaya, 2005). Kingfisher airlines are one of the seven airlines which were awarded the rating of five stars by skytrax. It operates 400 flights daily including the regional and international services. In 2009 it gave the highest market share in Indian airlines industries, carrying more than 1 million passengers. The main mistake was lack of understanding of customer requirements and luxurious facilities in airlines. Organizations focus on reducing costs and usually just CEO’S and top level managers prefer business class travel. Rest of the staff mostly travels by economy class. Moreover, buying most expensive business class tickets doesn’t go down well, when seniors aim to project the image of walking the talk. Secondly, the company is facing financial crisis since Mid-2008. After merging with Air Deccan in 2007, it is a low-cost airlines, provides minimum frills to customers at reasonable rates. Th...
SIA’s labor cost is the lowest among all major airlines, that not only valuable but also unique at that time. The gap between SIA and other airlines companies are not easy to cover in short time. But if other airlines make great efforts on cut down their human resource cost, they will catch up with SIA eventually since it is not too complexity, specificity and can be learn from the cumulate experience.
Several large scale, interrelated conditions have affected the airline industry over the past several years in such a manner that every carrier has had to respond in order to remain viable and competitive.
Air India airline is one of the biggest airline in the India. It was established by the famous company TATA and since its incorporation. It has grown very well and has spread all over the world in the different destinations. It has become the reputable brand in the airline industry with having the operations over 152 destinations. It has link up connection in the 35 countries and it has currently having 137 fleets. This company becomes the public limited company in the 1946. The company has international and the local route and its performance is increasing day by day with the pace of the good growth as compare to the other airlines in the industries in the area and the channels in which this airline is working.
Singapore Airlines (SIA) was created in 1972 and was fully state owned. The company expanded rapidly, and with a strategy of concentrating on customer needs by providing exceptional in-flight service, the airline quickly became a noteworthy competitor in the market. During its formative period in the 1970s, SIA developed all the hallmarks that made it one of the most successful and consistently profitable airlines in the world. Through a constant investment in personnel skills and other sources, the company has achieved a sustainable competitive advantage, as well as a reputation for classy elegance.
The Malaysia Airline System (MAS) reported a loss of over RM1.3 billion for the Financial Year 2005. It was unacceptable to many parties such as the stakeholders and the government especially the announcement was made at the same time as some of MAS regional competitors reported strong profits in the same year.
Using Singapore to debate has an interesting point of view. After it separation from Malaysia at 9 of August 1965. The nation became an independent state. Singapore was on her own, a tiny island lack of natural resource such as oil and rubber plantation, and on the other hand Singapore own a strategic harbour location.
Jet Airways was found in 1st April 1992 by Mr. Naresh Goyal and they started their operation after one year may 5th 1993, Jet began international operations from Chennai to Colombo in March 2004. The company was listed on the Bombay Stock Exchange
The Singapore Airlines needs to thoroughly understand the plans being pursued by the British Airways, Cathay Pacific, and Virign Atlantic in improving the comfort and quality of service it provides to its customers. The Singapore Airlines needs to continue differentiate itself by examining the strengths/weaknesses, and key points of these and other competitive airlines.