Singapore Airlines Business Analysis

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Opportunities Premium Economy Finally The roll out of the much needed premium economy class in Singapore Airlines is expected in the second half of this year. Singapore Airlines has resisted introducing this class even though it is a matured product offered by many airlines for sometime. The premium economy class should boost competitiveness as Singapore Airlines main competition on some of its European and Australian routes are offering this product, which seems to have become a hit with corporate passengers. According to CAPA (2014, para. 45), the revenue which this class of travel could bring if introduced on the right routes will give Singapore Airlines yields a much need boost. Partnerships Singapore Airlines has unfortunately been…show more content…
Scoot has grown leaps and bounds since 2012 and has already started taking delivery of their twenty fuel efficient Boeing 787 aircraft which are to replace the seven ageing Boeing 777 handed down from Singapore Airlines mainline. According to CAPA (2014, para. 49), these twenty 787s will improve the economics of Scoot’s operating model as well as expanding routes, therefore leading to growth and profitability. Scoot has already tied up with Nok Air in Bangkok to form Nok Scoot. This joint venture would allow Scoot and therefore Singapore Airlines to tap the Bangkok market which would provide the airline with a new hub as well as a new customer demographic. Changi Airport Low Cost Handling Changi Airport is synonymous with a premium airport and until 2012, one would not associate Changi Airport with low cost operations. This is because the airport operated a separate dedicated low cost terminal. This separate dedicated low cost terminal provided passenger, airlines and the airport with logistical problems in terms of airport transfers. With the success of KLIA’s low cost transfer operations, the Changi Airport Group closed down the budget terminal in 2012 and all the low cost operations were transferred to the main terminal. This move as well as the recent infrastructure development at Changi Airport, should help transfer between all the four market segments that…show more content…
According to CAPA (2014, para. 58), the Kuala Lumpur international airport has had a nineteen percent growth in 2013 compared to the five percent growth at Singapore’s Changi Airport. The main reason for this is that the Changi Airport has not responded fast enough to unlock the potential growth of low cost traffic as well as low cost transit traffic. As mentioned earlier, the Changi Airport Group has made changes by closing the low cost terminal and integrating their operations with the main terminal. Infrastructure development is also under way to provide for more capacity and a new runway. Hopefully these initiatives will help as the future of Singapore Airlines is interlocked with Changi and Singapore overall (CAPA, 2014, para.

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