Singapore Airlines

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Table of Contents
Introduction1
Over the years1
Key Success Factors2
Sustainability Criteria: The Dual Strategy5
Conclusion8

Introduction

The airline industry forms a major component of the travel and tourism industry. With increasing affluence, people around the world are spending a large percentage of their income on travel and tourism thus enhancing the sector’s prospects. Singapore Airlines (SIA) is one of the world’s leading players of the international airline industry. Singapore Airlines was the pioneer of in-flight services such as free drinks and complimentary headsets. And today, the name of Singapore Airlines has become synonymous with impeccable service around the globe.  

The care and attention that Singapore Airlines gives its customers, symbolised by the Singapore Girl, has earned the airline many industry and travel awards. In 1999-2000, SIA received over 60 awards worldwide in a range of categories – Asia’s Best Managed Company of the Decade (Asiamoney magazine), Asia’s Most Admired Company (for 5th year in a row) (Asian Business magazine), Best airline in the world (for the 11th time in 12 yrs) (Conde Nast Traveller magazine). It was also named “one of the world’s best managed and fastest-growing airlines” by Los Angeles Times.

SIA again emerged on top in 2009 as favourite airline among business and leisure travellers in numerous international rankings, highlighting its continued focus on product innovation and service excellence. The repeat awards that Singapore Airlines has been winning over the years encompass categories such as in-flight entertainment, food and beverages, ground services, safety and company management. The awards reflect the Airline’s philosophy to constantly innovate and keep pace with the changing tastes and preferences of consumers.

Over the years

SIA was started as a Malayan Airways in 1947. It was renamed as Malaysian Airways in 1963 and Malaysia – Singapore Airlines (MSA) in 1967. In 1972, it split into Malaysian Airlines and Singapore airlines and has thereafter become one of the strongest and well-known brand names in Asia.

When SIA began its operations, it continued to serve the international network of MSA and retained all its B737 and B707 aircrafts. With few hindrances in the beginning, SIA’s route network now spans 90 destinations in over 40 countries. SIA has one of the youngest fleets of any major airline, with an average age of about five years and two months as of March 31, 2000 compared to the industry average of 13+ years. The benefit of having the youngest fleets was that SIA’s planes were more reliable, quieter and roomier as compared to the competitors’. Over a period of more than half a century, SIA has earned a reputation as an innovative market leader, combining a quality product with excellent service. It has developed a reputation for being an industry trend-setter.

Over the years, SIA had signed several alliances. Some major alliances were the Trilateral alliance with Delta airlines and Swissair in 1989 (pulled out in 1997), comprehensive alliance between SIA and Lufthansa in November 1997, and the Star Alliance in October 1999 which included 15 other airlines. These alliances were entered into to meet SIA’s long term objective of becoming a global airline and airline-related companies.

On the formation of the comprehensive alliance between SIA and Lufthansa, Lufthansa’s chairman Juergen Weber remarked – “This alliance brings two of the world’s top airlines together with one objective: to give our passenger an even better travel experience.” This clearly expresses the joint advantages and opportunities to the two airlines from the alliance.

In addition to the alliances, SIA was also involved in acquisitions. In December 1999, it announced the acquisition of 49% stake in Virgin Atlantic. Similarly, in April 2000, it signed an agreement with Brierley investments limited to acquire 16.7% of Air New Zealand limited. This...
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