Singapore International Airline SWOT TOWS SFA STUDIES

Topics: Cost, Economics, Price Pages: 3 (1023 words) Published: September 23, 2014

Young Fleet
Geographical diversification
Strong Brand reputation
Self-sustainable business model
Bold and prudent management
Highly competitive human resource
Effective distribution channel – CRS - ABACUS

No government subsidies
Short of route network
Too much service classification and pricey

Open Skies – government agreement between countries, bilateral or multilateral Strategic alliance
Growth of air passenger service and cargo service

High volatile fuel price
Fierce competition
Prone to external effects such as economy downturn and natural disaster The rise of terrorism act
Government restriction of foreign ownership

SO (Self Sustainable Business + Growth In Industry)
Upgrading of aircraft facilities
SIA having the practices in maintaining their aircraft with highest standards and that will contribute much to them when they deem the aircraft is already up to the age for passenger service (average 6 years 3 months), they can however integrate upgrading and modification works for passenger aircraft and convert it into cargo service. First, upgrading will enable the old aircraft equipped with latest technology and subsequently achieve the aim of safety and fuel saving strategy. Secondly, they enjoy further benefits in capital cost because of the massive amount of money they could save without buying new aircraft for cargo use.

Why not?
SIA can be more effective in cost saving by doing aircraft upgrading and modification work, new aircraft is merely for passenger service because it is crucial to use the best for carrying people due to better comfort and safety. On the other hand, SIA rejuvenate the old planes for cargo use and they can gain better reward in less cost of buying new aircraft and the move will not deviate from their current objectives to operate young fleet of enhanced safety and fuel efficient, thus the aim can be achieved with...
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