Cathay Pacific Airways Essay
Nowadays, CPA is one of the world’s largest and most beneficial international airlines based in Hong Kong. Besides, with a good reputation in the world, CPA has competed directly with Singapore Airlines in terms of services provided. Also, having the global extensive network of 92 destinations around the world CPA is seen as the main competitor for Singapore Airlines in global market.
Qantas Airways Limited (QAN)
Qantas is the flag carrier airline of Australia, not only the largest airline Australia but also the second oldest in the world. Qantas has a 65% share of the Australian domestic market and carries 18.7% of all passengers travelling in and out of Australia.
Its greatest threat being the notable Jetstar Asia Airways. Which is a low-cost carrier of Qantas Ariways that operates out of Singapore Changi Airport, competing with SIA on short-haul routes.
SWOT Singapore Airlines Limited (SIA) Cathay Pacific Airways (CPA) Qantas Airways Limited (QAN)
Strengths • Aircraft fleet with larger passenger capacity & more fuel efficient technology
• Leading innovator in in-flight
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As mentioned above, the continuously increasing demand for travel and delivery as forecasted by the global airline industry is expected to grow by 6.4% in 2014 (Data monitor, 2009). This creates many opportunities for Singapore Airlines and the airline industry as well. In terms of passenger revenue, Middle East and Africa is estimated to grow by 16.7% and 16.4% respectively, where is a chance for Singapore Airlines to gain more market share in these respective regions. Not forgetting, Singapore Airlines’ already strong position in the East Asian market where it is estimated that their market share in the region is expected to increase from 25% in 2005 to 31% in 2015 (Data monitor, 2009). Also, in terms of cargo traffic, SIA’s share of the world’s air cargo volume is expected to rise from 4% in the next 5 years from 20% in 2009.
SIA’s Strategy
Singapore Airlines’ strategy is to participate in global groups and build relationships with more overseas partners to create more chances for Singapore Airlines to penetrate into new markets and further develop their business. For example, SIA joined Star Alliance in 2000 to reach out to the American market. Another example is SIA rebuilding relationships with Tata Group that shattered the policy barrier to an open Indian sky. These relationships will definitely affect Singapore Airlines’ revenues and market share positively in the long run.
3.4 Threats in the
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