Singapore Airlines Swot Analysis

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  • Topic: Singapore Airlines, Airline, Malaysia Airlines
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  • Published : June 9, 2012
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Introduction

Singapore Airlines is without a doubt, one of the leading airlines in the aviation industry. However, the fact that there are over a hundred other airlines companies within this region should not be ignored. The primary objective of this study is to identify the strengths, weaknesses, opportunities and threats of Singapore Airlines and come up with recommendations and strategies for the group to further improve their business operation.

Company Background

The Singapore Airlines Group (thereafter, referred to as SIA) is a homegrown aviation company that offers passenger and cargo air transportation, airport terminal services, engineering services, training of pilots, air charters, and tour wholesaling and related activities. The group’s fleets fly to 62 destinations in 35 countries on six continents from its primary hub in Singapore. In 2011, SIA is the world’s third-largest airlines by market capitalization with a worth of 14 billion US dollars following behind Air China Ltd and Lan and Tam Combined. SIA employed a total of 21,534 staff members at the end of the fiscal year on 31 March 2011. The parent airline itself employed 13,942 (47.3%), of which there are 2,174 pilots and 6,914 cabin crew. SIA is ranked second World’s Best Airlines in the World Airlines Awards 2011 held at the Paris Air Show by Skytrax. Its major competitors are Qatar Airways, Asiana Airlines and Cathay Pacific Airway.

Strengths

International recognition
Singapore Airlines is reputed worldwide for its emphasis on and deliverance of excellent service quality. It is one of the leading airlines in the aviation industry and many other airlines strive to be as good as them. One of the main elements that make SIA so recognized is its very own Singapore girl. They have become a symbol of world-class experience and portray the Asian values of compassion, affection, kindness and gracefulness. The Singapore girls have become a differentiating factor of SIA. The skilled workforce of SIA also makes a difference to the company. SIA hires employees from all over the world and this helps to break down the language barrier, which in turn improves the service quality. This is a strength of SIA because the lack of barriers allows service to be at its optimum.

Trendsetter
SIA has developed a reputation of being a trendsetter in the industry over the years. Many other airline companies have sought to imitate SIA since then. Of the many examples, SIA was the first to offer free headsets, choice of meals and drinks in the economy class way back in the 1970s. As far as its technology is concerned, SIA maintains the youngest fleet of all leading airlines. It emphasizes on replacing its older aircrafts for newer and more advanced models. It has been the pioneer of several aircrafts models and is always one of the first few airlines to introduce newest models into its fleet. One of the most notable examples of SIA being at the forefront is the Airbus 380. The first commercial flight of the Airbus 380 – SQ 380, carried 455 passengers from Singapore to Sydney, Australia. This event garnered attention worldwide and press from all over the world came to Singapore to cover the event. SIA was further exposed to the world and re-emphasized itself as being at the forefront of technology. These further enhanced the reputation and brand name of SIA.

Strong Government Backing
Temasek Holdings, an investment company owned by the government of Singapore is the parent company of SIA; the company holds close to 55-percent of the total shares. This has provided a very strong backing for SIA. With the support of the government, business activities have been made relatively easy compared to others’. With the government of Singapore being known for one of the least corrupted in the world, the image of SIA being dependable is also being boosted.

Weaknesses

Price of Tickets
Travelling on SIA is too costly, hence middle-income Singaporeans who are unable...
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