Delta's mission is the " Worldwide Airline of Choice" and their strengths lies in their competitive edge of Delta's people, customer service as the cornerstone of their company, a strong route system, outstanding operations and fleet and ethical actions. Delta's vision builds on Delta's in sustained profitability comes to the opportunity for growth with advancement and the pride with an exceptional business organisation. Delta has a Success Through Service training of this competitive advantage. Delta had led the industry with customer satisfaction ratings, providing passengers with consistent, high-quality flying experience. Since 1971, Delta has maintained the best overall record of passenger satisfaction of any major U.S airline per 100,000 customers
This contributes a lot in carrying out the business operations. Apart from this, the government of Singapore invests a lot in diversifying the economy, and political parties play the most active role in the development of the economy (PESTLE Analysis of Singapore, 2017). So, with the help of this it can be clearly stated that economic factor is quite favourable in case of Singapore airlines where the sound economy system of the nation has acted as the development tool for the business. No such economic fluctuations are present in the nation that adversely affects the performance of the organization, and this is the main reason due to which Singapore airlines are able to earn higher profits and revenue by conducting overall operations in the market. However, some constraints regarding the economic performance of Singapore are present that takes into consideration rise in the labour cost, labour shortage and decline in the level of
This method is the most common one used to calculate depreciation. An example of this would be: the annual depreciation on a machine with a useful life of 5 years, a salvage value of €1000 and a cost of €10,000 is €1,800 ((€10,000-€1,000)/5). • Double Declining Balance – this is a method used to write off depreciation costs more quickly and minimize tax exposure. If an asset has an estimated useful life of 8 years, straight-line depreciation would be at an average annual rate of 12.5%. However, under this method, a 25% rate would be used.
Modern Fleet of Planes SIA has one of the most youthful fleet of passenger planes among all airlines. As at June 2015, its passenger planes have an average age of 7 years and 1 month. With older planes being regularly replaced, mechanical failures are rare. Fewer take-offs are delayed, and with
Managers have to determine the target that the organization needs to pursue, the target like responsiveness, productivity and quality to passengers (Waddell, Jones, George 2011, 11). Manager of Singapore Airlines, Tan Kai Ping did not take a gamble by dropping the price of the flight ticket to compete with other airlines in order to maintain the profit (Valisno 2006, 1). Besides that, the general manager of Singapore Airlines evaluated that the demand for flight is continuing to increase, so he decides to launch an Airbus A380 on the daily route to Auckland and this will provide an extra 45 million in tourism (New Zealand 2014, 8). On the other hand, ATA airlines sold many seats at low fares to attract customers, however the number of tickets sold did not go into their plan (Koch 1999,1). Apart from this, the manager of ATA Airlines failed to estimate the demand for flight will increase in future, so the manager reduces the capacity of the organization because of having the loss for a long time (United State Department of Transportation 2005).
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).
1. SWA’s competitive strategy and its execution SWA adopts “cost leadership” strategy, which aims to become the low-cost leader in the airline industry. It has stressed on resources utilization and cost-saving activities for years in order to achieve the strategic goal. In terms of resources utilization, SWA focuses on short-haul trips and point-to-point routes only. This would shorten the turnaround times and enhance equipment use – SWA’s flights can spend 3 hours more in the air per day than the industrial average.
Singapore Airlines heavily invest in training employees. Heracleous and Wirtz (2010) state new employees receive four months of training, twice as long as the average eight-week training offered by most aerospace companies. Moreover, cabin crews are trained to respond to nationalities differently. Plus, SIA spends $70 million annually on employees receiving an additional
Threat of New Entrants: Threat of new entrants for Singapore Airlines is weak. Since Singapore Airlines is a government owned airlines, they have lots of advantage. Singapore Airlines has by far a huge amount of capital outlay, Besides that Singapore Airlines has received multi awards for almost everything, known worldwide, and provides great service to their passengers. Singapore Airlines has dominated the aircraft world for long haul passengers, making new entrants hard to compete with what Singapore Airlines has to offer. The Intensity of rivalry: The intensity of rivalry for Singapore Airlines is always fluctuating from low to high.
Depreciation Depreciation is a method of allocating the cost of a tangible asset over its useful life. In accountancy, depreciation refers to two aspects which is the decrease in value of asset and allocation of the cost of assets to period in which the assets are used. During each accounting period, a portion of these costs is being used up. The portion being used up is considered as depreciate expenes and recorded on the financial statement. A business must record a depreciation based on consistency concept.