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Singapore airlines management and operational structure
Singapore airlines management and operational structure
Opinion on singapore airline resources and capabilities
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Background of Singapore Airlines:
Extracted from Singapore Airlines website “Singapore Airlines has come a long way since our founding in 1972, evolving from a regional airline to one of the most respected travel brands around the world. We fly one of the youngest aircraft fleets in the world to destinations spanning a network spread over six continents, with our Singapore Girl as our internationally-recognisable icon providing the high standards of care and service that customers have come to expect of us. Mission statement: Singapore Airlines is a global company dedicated to providing air transportation services of the highest quality and to maximising returns for the benefit of its shareholders and employees.”
Singapore Airlines being in the airline and service centric industry, this put the company to face a variety of challenges, ranging from the basic characteristics of service to the increasing number of competitors entering the industry. Some challenges have been identified as follow.
¬Problems faced by Singapore Airlines:
1) Stronger competition from equally reputable airlines:
In an online article published on Bloomberg Businessweek titled Singapore Airlines’ Competition Rises, it highlighted “Singapore Air faces greater competition on Europe-Asia routes as Emirates Airline and Qatar Airways expand their more centrally located hubs and win premium passengers with improved front-cabin service. At the same time, regional and economy travellers are being targeted by low-fare airlines such as AirAsia and the Jetstar unit of Qantas Airways. Last year Qatar was named the world’s best airline by rating group Skytrax, an award that Singapore Air received in three of the five years through 2008—and has not won since. Southeast A...
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... the airline industry. Transportation Research Part A: Policy and Practice, 42 (1), pp. 227—242 [Accessed: 25 Nov 2013].
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“To be the best airlines in whole world and providing excellent customer experience in our flights with full entertainment and loads of satisfaction.”
As airline industry is a competitive marketplace, the airline companies use new technologies to improve their efficiency and decrease the overhead costs, including ‘advanced aircraft engine technology, IT solutions, and mobile technology’ (Cederholm 2014). The technology changes including technology improvement, new innovation and disruptive technology. The disruptive technology need to meet the characteristics of ‘simplicity, convenience, accessibility and affordability’ (Christensen 1995). The technology changes would bring both opportunities and threats to airline companies. Since Labour cost and fuel costs occupy 50% of most airlines operating cost (Groot 2014). Therefore, if new technologies could be disruptive in the two aspects, there will be important changes to current airline
1. Issues 2. American Airlines’ objectives 3. The airline industry 4. Market 5. Consumer needs 6. Brand image 7. Distribution system 8. Pricing 9. Marketing related strategies 10. Assumptions and risks
This report is analysis internal and task environments (Porter’s five forces) on the European airline industry include general airline and budget airline and identity Ryanair. After that, student needs to use SWOT to analysis on Ryanair. Finally, students need to mention how Ryanair to delivery the strategy.
It’s a comparatively younger fleet in the airline industry and is Middle East’s largest airline and growing at high rate both in its fleet and market sectors around the globe with its hub based in Dubai International Airport. Emirates is ranked among the top 10 airlines of the world in terms of passenger kilometers.
Porter stated; “for an airline to succeed in the marketplace, it must have a sustainable competitive advantage” (Porter M. E., 2008). The airline industry is the highest competitive industry, and I believe a sustainable completive advantage is essential to succeed in the future of the aviation industry. The competitive advantages that an airline embrace, needs to be based on the airlines strategy and differentiation to competitors. Emirates displays how it has a strategy and how the airline gets ahead of its competitors through how unique it is.
Lufthansa, one of the world’s biggest airliners, has divisions handing maintenance, catering and air cargo. Since the World War II the airline industry has never earned its cost of capital over the business cycle (Hitt, 2010). Most of the airline companies have either filed for bankruptcy or are being bailed out by their government. Lufthansa had also gone through these tough times, but had resurfaced to become one of the worlds most profitable airline company. The company adapted a transnational strategy, seeking to achieve both global efficiency and local responsiveness. Lufthansa’s monopoly in Germany came to a halt with the creating of the European Union. All the EU member countries become one regional and therefore the European competition became, an increasingly a local competition. Lufthansa created its regional Hubs, to cater for its domestic market. But the availability of substitutes such as bullet trains and the Euro tunnel, made is necessary for Lufthansa to create short traveling time, customizations and quality standards in the region to achieve a competitive advantage. But outside the EU there are no substitute to air travels as such all the flag carriers are competing in the market, the international airline industry is a highly competitive environment. A new force has also emerged in the world of air travel, in the form of three Gulf airlines with jumbo ambitions. Within a decade Dubai’s Emirates, Qatar Airways and Eithad from Abu Dhabi have between them carried the capacity of two hundred million passengers (Micheal, 2010). The company had to go global and therefore adopted the international corporate-level strategy, where Lufthansa will ope...
The perennial crisis in the airline industry: Deregulation and innovation. Order No. 3351230, Claremont Graduate University). ProQuest Dissertations and Theses,, 662-n/a. Retrieved from http://search.proquest.com/docview/304861508?accountid=8364.
2. Planes: SIA have 22% 747-400 aircrafts of total production in the world. These planes are greater flying range, better fuel efficiency and quieter cabin than other airline. High unique and valuable that SIA has strong competitive power for attract consumers, and lower cost than other airline. Also if other airlines want to purchase more 747-400 that will use huge money, which is difficult.
Additionally, deregulation and liberalization has accompanied the globalization of the airline industry, so that companies have had to compete against each other in new markets, as well as to gain entry into new territories. The rise of low cost local and regional airlines has made the competitive environment difficult to maneuver for large, formerly-state-subsidized national carriers. This has resulted in the need for strategic alliances between airlines in order to attempt to protect market shares and profits (Friehe and Curti, n.d.).
AirAsia Berhad is a Malaysian low-cost airline based in Kuala Lumpur, Malaysia. It has been named as the world's best low-cost airline, and a pioneer of low-cost travel in Asia. AirAsia group operates scheduled domestic and international flights to 100 destinations across 22 countries. AirAsia has risen exponentially since its purchase in 2001, as a result of its confluence of opportunity and its application of the Low-Cost Carrier business model (Poon & Waring, 2010).
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 airlines bolstered its financial and physical performance with a 44% slash in its operating losses in 2013-... ... middle of paper ... ... sher-airlines-mess/1/189224.html 4) http://www.thehindu.com/business/Industry/kingfisher-airlines-crisis-timeline/article4636635.ece 5) http://www.slideshare.net/ckhattar/kingfisher-airlines-a-case-study 6) http://bhatianeha.weebly.com/uploads/1/3/9/4/13947202/air_india.pdf 7) http://centreforaviation.com/analysis/air-india-outlook-a-business-model-beleaguered-on-all-fronts-99224 8) http://www.livemint.com/Companies/noBxmxaodeYFCIjSEAMBZP/Air-India-plans-alleconomy-seats-for-new-domestic-flights.html 9) http://centreforaviation.com/analysis/kingfisher-airlines-going-against-the-trend-with-plans-to-exit-low-cost-business-by-jan-2012-59725 10) http://www.thelegaltrain.com/2012/01/case-study-of-air-india.html 11)
Tiger Airways is an airline company established in Singapore in the year 2004. It is a budget carrier which means the services provided by this airline is affordable and satisfying. This company incorporates three airlines, which are Tiger Airways Singapore, Tiger Airways Australia and Tiger Airways Mandala. Tiger Airways travels to over 50 different places at 14 different countries in the Asia Pacific. Furthermore, Tiger Airways owns a fleet of aircrafts with the age of less than three years. Tiger Airways Singapore has a fleet consisting of 27 aircrafts. Meanwhile, Tiger Airways Australia has 13 aircrafts whereas Tiger Airways Mandala has the least which was nine aircrafts (Tigerair, n.d.).
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.