Swot Analysis Of Airlines

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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
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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.

Growth of Global
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The airlines compete over fares, customer service, flight schedules, routes served, safety record and reputation.
SIA is facing greater competition on Europe-Asia routes from Emirates Airline and Qatar Airways. Regional and economy travelers are also being targeted by budget airlines such as AirAsia and Jet Star, the subsidiary of Qantas Airways. SIA is also facing increasing competition in the Australia/Asia-Pacific region when Eithad Airways introduced daily flights between Abu Dhabi and Brisbane via Singapore.
The intense competition in the industry has caused SIA’s average passenger load factor to decrease for the third consecutive year. In FY2014/2015, the passenger load factor of 78.5% did not meet the breakeven load factor of 79.5% for flying the planes.
To counter this problem, SIA has increased the frequency of flights to Australia to counter competition from Eithad Airways. The airline also set up Scoot, a budget airline and expanded capacity with SilkAir in response to competition from budget airlines. SIA is also potentially increasing its stake in affiliate company, Tiger Airways, and has diversified its strategic investments in order to keep pace with its competitors. For example, the SIA Group doubled its stake in Virgin Australia to

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