Swot Analysis For Airlines Essay
7.1 STRENGTHS
Good Reputation and Branding
SIA Company is among the world’s most reputable airlines. The airline has developed a stellar reputation for its exceptional service and reliability standards. Earlier this year, SIA won Best Business Class Airline and was ranked 2nd best airline in the world.
Although SIA’s product offering or service excellence can be easily copied and even bettered by competing airlines, its stellar reputation for excellent service and desirability is not easily replicated.
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
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For example, a 2-way one week trip from Singapore to Hong Kong and back costs at least S$858.70, while flying with a budget airline, such as Tiger Airways only costs from $367.40 for the same destination.
SIA’s higher price will deter some travelers from flying with the airline, especially with budget airlines becoming an increasingly popular choice. Although SIA has introduced Scoot as a budget airline, airfares are still more expensive compared to Air Asia and Tiger Airways.
Over-Reliance on International Traffic
Singapore is a small country with the domestic market sector being exceptionally restricted. As at 2015, Singapore’s population remains under 6 million. SIA has to depend heavily on international passengers, unlike other airlines like Thai Airways, which is able to sustain operations with domestic flights alone, due to the large population in Thailand.
Thus, SIA loses competitiveness in this aspect, as the airline cannot rely solely on air travel within Singapore to sustain its operations.
7.3 OPPORTUNITIES
Growth of Global
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