Singapore Airlines Case Analysis

Introduction and Background: An Overview of Singapore Airlines

Singapore Airlines is Singapore 's best-known airlines, and rated as the 18th in Fortune’s“World’s most admired companies” rankings in 2014. In 1947, the airline began as Malayan Airways that a joint venture between the Malaysian and Singapore governments, majorly serving the South East Asian region. Then, it changed the name called “Malaysia-Singapore Airlines” (MSA). In 1972, MSA split into Malaysian Airline System (MAS) and Singapore Airlines (SIA). Since the 1980s the international airline business, it has been tough competition environment, with major international airline (Iatrou and Oretti, 2007). SIA has developed innovative strategies to adapt the market changes, outperformed of competitors through a different position and diversified products.

According to IATA, the global airline industry had estimated almost $31 billion cumulative losses between 2001 and 2010 (IATA, 2011). In a recent study, Booz & Company (2009) states that many of the world’s airlines are in poor financial health and are ill-equipped to weather the global recession (see Figure 1, p.3). In the result, SIA was the best financial health rating as 1st with excellent Financial Health. In this environment, SIA has achieved consistent profitability that since its founding has never reported an annual operating loss.

In this report, we will examine the SIA’s strategy, external and internal environments, how this organization can