Singapore Airlines Article Review

Excerpt from Article Review :

Learning Journal Weekly Research Journal Meeting Records

Week 1 Overview & Introduction

Our group decided to analyze Singapore Airlines Limited. One of the aspects of Singapore Airlines that we found interesting and that first attracted members of our team was their green initiative. The airlines industry is highly competitive and green, sustainable operations are usually not the least expensive alternatives for a thriving airline. Singapore Airlines is an early adopter of fuel-efficient technology. They were the first airline to fly the Airbus 380 and have placed orders for the latest planes of the fuel-efficient generation: Boeing 787 and Airbus A350. The passenger fleet maintained by Singapore Airlines is young, with an average age of 6 years and 4 months (as of September 1, 2011). The passenger fleet numbers in excess of 175 aircraft in 2009. Singapore Airlines operates in East Asia, Europe, the Americas, West Asia, Africa, and the South West Pacific. More than 18,300 passengers were transported to 66 destinations around the world.

In addition to the airline operations, Singapore Airlines is in the business of airport terminal services & food operations, and engineering services. The airline is engaged in global air transportation of passengers, cargo, and mail. The company has a number of subsidiaries, three major subsidiaries include SIA Engineering Company Limited, Singapore Airlines Cargo Pte Limited, and SilkAir Private Limited.

Singapore Airlines in the News

Source: Singapore Airlines Press Release

06 September 2011 - Singapore Airlines has taken another step towards greener skies by joining the Sustainable Aviation Fuel Users Group (SAFUG).

Established in 2008, SAFUG is a working group that aims to accelerate the development and commercialisation of lower-carbon renewable aviation fuels, derived from environmentally and socially sustainable sources.

"We are pleased to be the newest member of SAFUG. This is in line with our longstanding commitment to reduce greenhouse gas emissions while improving the efficiency of our operations," said Mr. Ng Chin Hwee, Singapore Airlines' Executive Vice-President Human Resources and Operations.

"It will take time to research and develop alternative fuels that meet the stringent safety requirements of civil aviation and at the same time are commercially viable. But through SAFUG, which brings together both airlines and aircraft manufacturers, we hope to be one step closer."

Source: Analysis: Budget ride crest of Southeast Asia boom

By Ploy Ten Kate and Harry Suhartono

BANGKOK/SINGAPORE (Reuters) - Five years after Southeast Asia's biggest airport by passenger capacity opened in Bangkok, hailed as the dawn of a new breed of Asian mega-airports, the sleek, wave-shaped passenger terminal is already running at over-capacity.

The overflow of passengers at one of the world's largest air hubs illustrates an aviation boom that is accelerating in Southeast Asia, even as airlines in Europe and the United States cut capacity and fleets to salvage profits.

From Bangkok to Kuala Lumpur to Singapore, airlines in the region of 550 million people are expanding fleets and adding capacity even as the International Air Transport Association (IATA), a trade body, warns a weak global economy could shrink industry profits by 29% in 2012 to $4.9 billion (3.1 billion pounds).

Rapid economic growth, rising affluence, liberalisation and notoriously poor rail, land and sea transportation are reshaping an industry that only a decade ago was hamstrung by heavy handed regulation and government involvement in much of Southeast Asia.

The International Monetary Fund has forecast ASEAN's five biggest economies to grow a combined 5.6% in 2012, well compared with 1.8% in the United States and 1.1% in Europe.

However, there are some wild cards for Asia's airline sector. Regional airlines should be cautious about expanding too aggressively given trouble in the world economy, said Shukor Yusof, a Standard & Poor's analyst in Singapore, citing how the last downturn forced Japanese flag carrier Japan Airlines to file bankruptcy in January 2010.

Partly driving regional expansion are plans by ASEAN to establish a single aviation market with no traffic restrictions by 2015. This will allow unlimited flights between ASEAN capital cities, prompting more flights and raising the prospect of more cross-border joint ventures.

Full-service carriers are also investing heavily and expanding into low-cost areas. Singapore Airlines, for instance, plans a no-frills, low-fare carrier that will likely have four planes in service next year as it targets traffic in Australia, China and Europe.

Amranand said airlines had no choice but to spend further on planes as they need newer, more fuel-efficient aircraft to upgrade fleets, keep pace with rivals and to keep costs under control in the face of high oil prices.

Week 2 Marketing Management Process. Goals and Objectives

Nominated tutorial questions and answers:

1. Research and Situation Analysis

2. Product / Market Gap

3. Develop goals and objectives

4. Identify target market / audience

5. SWOT analysis

6. Competitors analysis

7. Communication strategies

8. Media

9. Budget

10. Implementation and timeline

11. Control and evaluation

12. Recommendation

Week 3 Corperate and business Strategy

Glossary of terms

Export Credit Agency (ECA) This is an investment insurance agency that acts as an intermediary between exporting entities and national governments for the purpose of financing loans. The financing can be credit (as insurance covering loan amounts), credits in the form of financial support, or guarantees, which are pure cover of the loan. The governmental mandate determines the type of financing arrangements offered by the ECA.

EU -- U.S. Open Aviation Area Agreement Deregulation of U.S. domestic commercial aviation created opportunity for the U.S. And the European Union (EU) to reduce air transportation between their countries and regions. Air traffic was liberalized and international transportation markets were opened over the Atlantic Ocean between the EU and the U.S. On April 30, 2007 with the signing of the agreement. The Agreement accomplished the following: Restrictions on air fares were removed; carriers were free to fly to any point in partner countries; air passengers could be transported between partner countries under the 5th Freedom rights; alliances between airlines would be permitted; and cooperative marketing arrangements could be made between airlines, including code-sharing and leasing.

Blue Ocean Strategy Blue Ocean Strategy (BOS) is the simultaneous pursuit of differentiation and low-cost to create new market space. Blue Ocean Strategy seeks to make the competition irrelevant by creating a leap in value for both the company and its buyers.

Blue Ocean Strategy aligns the following three propositions:

1. Value proposition: The utility buyers receive from the product or service minus the price they pay for it. Is there a compelling reason for the mass of target buyers (customers and noncustomers) to purchase the new offering? Is the offering priced to attract the mass of target buyers so that they have a compelling ability to pay for it?

2. Profit proposition: The price of the offering minus the cost of producing and distributing it. Lower cost is achieved by eliminating and reducing factors that the industry has either taken for granted (e.g., legacy factors the industry still competes on but add little value); or over delivered on.

3. People proposition: The readiness of employees to execute the new strategy with all of their energy, to the best of their abilities, and voluntarily.

Adoption hurdles can block the execution of a Blue Ocean Strategy. These forces may come from the company's employees, business partners, or the general public. One must identify adoption hurdles, and address them up-front before attempting to execute a Blue Ocean Strategy. Beyond the alignment of these three propositions, six principles drive the successful formulation and implementation of Blue Ocean Strategy.


Week 4 Understand Marketing Opportunities Market Analysis


Virgin -- Australia -- and Singapore Airlines to change the balance of power with long-term alliance


Singapore Airlines (SIA) and Virgin Australia have announced plans to establish a long-term alliance that, if it meets regulatory and competition approvals, has the potential to transform competition in Australia-Asia markets and increase competition for Qantas in its core domestic and international premium travel markets. For Virgin, SIA completes the alliance puzzle that now stretches east to New Zealand and North America withAir New Zealand and Delta, respectively, west to the Middle East, North Africa and Europe with Etihad, and now north to Asia with SIA, as well as simultaneously feeding its domestic operation.

Should it be approved, the SIA deal would cap a very successful first 12 months for Virgin Australia group of airlines CEO John Borghetti, who has cut back loss-making routes, rebranded the airline and established a high-potential network of bilateral partnerships. The benefits of Virgin's coverage of the compass should flow within the next 12 months.

Mr Borghetti calls the partnership with SIA "a huge step for us" and "a game changer" because "it really completes our alliance strategy we started 12 months ago." He says the partnership is in particular key to achieving Virgin Australia's goal of securing a 20% share of the Australian corporate market.

Under the agreement, the two airlines propose to:

Codeshare on each other's international and domestic flights;

Offer reciprocal frequent flyer programme benefits and lounge…

Cite This Article Review:

"Singapore Airlines" (2011, October 28) Retrieved August 22, 2017, from

"Singapore Airlines" 28 October 2011. Web.22 August. 2017. <>

"Singapore Airlines", 28 October 2011, Accessed.22 August. 2017,