Singapore airline’s History can be traced back to when it was found in 1947 with Malaysian Airlines (known as Malayan Airways). Its first flight linked commenced from Singapore Kallang to various places like Kuala Lampur, Ipoh and Penang. Malaysian federation was formed in 1963 naming the company to Malaysian Airways and further changing it name to Malaysia-Singapore airlines (MSA) in the year 1966. In 1972 the MSA Company was split into two, Singapore airlines and Malaysian airlines system (Renamed as Malaysian Airlines) and thus The Singapore International Airline (SIA) was formed (Star Alliance, 2014).
SIA with their route network has exceeded to 63 Destinations in 35 countries that serves in Asia, Europe, North America, the Middle …show more content…
According to the research SIA has achieved its outstanding performance by implementing a dual approach; Differentiation through their service excellence and Innovation and together with cost leadership in its peer group. According to Michael Porter’s influence suggestion this dual strategy was seemingly unachievable as both the differentiation and cost leadership were mutually exclusive different kind of investment strategies across the value chain (Management, 2014). As a part of International Strategies, In April 2000, the company had joined the star Alliance one of the three major airlines alliance. Although through the other side SIA have been investing in China and India through various strategic alliances with their local organization like the cargo division, airport services and catering (Bsr.london.edu, 2006).
Below table shows Singapore airline’s performance comparatively to its competitors: Source: London Business School BSR Valuable Information of expertise in Technology has been the aspect for SIA’s strategy in enhancing the customer service as well as increasing the efficiency. Effectual use of IT has considerably condensed cost and improved serviced levels, With the business –level strategy approach (Management, 2014). SIA has been able to come up with the premium service to its loyal customers. Singapore airlines chain its dual strategy of cost
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In the local region, Qantas managed to outweigh its competitor by gaining a toll of 65% compared to its competitor. Evidently this shows Qantas is the number one preferred airlines compared to other competitor airlines like Virgin, Tiger Airways and Emirates airlines. However the situation is not the same in South East Asian region as Qantas only managed to obtain about 15% of market share compared to likes of Air Asia who leads the market share with 60% in this region. Conversely, this is not a concern for the airlines as the airlines managed to generate revenue of 5 billion dollars, with a predicted passenger growth of 4.9% which is equivalent to 2.9 billion passengers by 2034.
This report will be discussing strategic management to a company in the airline industry. This report will examine a chosen company’s strategic management and outline the stages. Strategic management is analyzing the situation facing the firm, also on the foundation of analysis formulating a strategy and lastly implementing strategy. Strategic management is the identification and the description of strategies that can be used by managers so as to attain better
"In 2014, Air Canada achieved its best full year financial performance in the Corporation 's 77-year history," said Calin Rovinescu, President and Chief Executive Officer. (Air Canada Website CIO 2015) Adjusted net income was $531 million, representing an increase of 56.2 per cent year-over-year.” The purpose of this paper is to examine how Air Canada in 2011 successfully aligned their business strategy and Information Technology (IT) by managing information resources on several levels to accomplish a competitive advantage over other airline carriers and gain the attention of their customers through innovation. Finally, this paper will address suggestions to achieve better Business-IT alignment to meet Air Canada’s goals for the future and continued success.
The purpose of this study is to compare Spirit Airlines with American Airlines using the financial ratios of liquidity, activity, debt, profitability and the market, and to derive some concrete conclusions about the financial nature of Spirit Airlines. According to Spirit Airlines (2015) “Historic Stock Lookup,” from 2011 to 2014, the year-end stock prices have increased by 79.4%, which is outstanding. Thus, Spirit Airlines will be used as a benchmark in terms of comparing
Berry, S., & Jia, P. (2010, August). Tracing the Woes: An Empirical Analysis of the Airline Industry. American Economic Association, 2(3), 1-43. Retrieved from http://www.jstor.org/stable/25760397
South African Airways is the national carrier of South Africa. It is a state owned entity with Minister of the Public Enterprises providing an oversight role. According to the SAA website, the airline started operating on 1 February 1934, which this year marks 80 years of existence. The government took it over from Union Airways and renamed it SAA. On 25 March 1994 the
After calculating the annualized stock price and S&P 500 found in the appendices section I was able to come up with a few comparisons among the U.S airlines. Southwest and Delta have stood out in the past few years for producing consistently strong profits. American airlines have been on the decline the last few years and stocks are still falling due to its higher prices than the other airlines. Investors have acknowledged the strong performance made by Delta and South which helped their stocks improve in recent years. However, the airlines S&P 500 has been on the decline over the past couple years after the company lowered its unit revenue outlook in the past three years. Southwest unit revenue 10 years ago was on the decline due to the 2007
References Bureau of Transportation Statistics. (2005). Air traffic statistics and airline financial statistics. Retrieved February 17, 2006 from http://www.bts.gov/oai/indicators JetBlue Airways Corporation. (2002). Jetblue?s 2002 Form 10-K. Retrieved February 22, 2006, from http://media.corporate-ir.net/media_files.
The creation of airline alliance in the 90’s was driven by new level of competitive awareness in the sky transportation field. There were many elements that influenced the decision of bounding airlines such as to gain the competitive advantages by code-sharing to make growth in market share. Many alliances were created back then, but later they consolidated and formed five big alliances that exist till today and one of those and the biggest one is Star Alliance. The airlines within the alliance that were under one network, still could maintain their own identities.
Over the last decades of airline industry, due to the oil crisis, 9/11 attacks, SARS outbreak and the intense competition within the airline industry, airline companies have faced the challenge such as airline companies bankrupted(Lin & Fang,2003), so the airline companies decide using the “strategic alliance” to run their business, not only can collaborate with other airline companies to increase the domain of the operation but also cut down the cost to increase the operational performance and profitability. (Tang&Tseng, 2010)
Since the 1990s the alliances in the airline industries is common and there are three major airline alliances which are present in the world are OneWorld, SkyTeam and Star Alliance. These alliances of airlines have covered almost two third of world air traffic industry and the major contribution in this is Star Alliance. The strategic alliances on the part of the airlines are done because of many advantages which not only organizations reap but also the other stakeholders which are involved in this type of alliances. This research paper is evaluation of why the strategic alliances are important and why the organizations go into the strategic alliances the case study of star alliance was taken as the reference and the circumstances
Singapore Airlines is a global company dedicated to providing air transportation services of the highest quality and to maximising returns for the benefit of its shareholders and employees."
As a part of Crossman Communications, this essay will go into depth about the client, Malaysian Airlines and their recent campaign. Malaysian Airlines founded in 1957, currently flies to 53 different destinations having over 12 000 employees (Malaysian Airlines, 2017). The airline company offers the best way to fly to and from Malaysia flying over 40 000 people everyday (Malaysian Airlines, 2017). The campaign was set to rebuild the trust of Australian and New Zealander flyers due to the multiple aircrafts that have gone missing which have affected families in both countries (Crossman Communications, 2015). Having said that, the goal was to improve bookings, and generate positive media coverage (Crossman Communications, 2015). This essay
As public biggest airline company in Singapore, Singapore Airline has several key business activities ranging from engineering, flight services until cargo services, but their main activity is more on flight services. Singapore Airline is relying heavily on Singapore financial system to operate their business. One of the evidence is that SIA benefiting from the financial market as the company’s share has been listed in SGX. As stated on Singapore Airline Annual Report, SIA has a cash surplus for the past 10 years on average………. Singapore financial system has help this company to grow and develop rapidly by their financial market, institutions and instrument, which will be discussed further later.
The current market, Malaysia Airlines does not have a top two position in any market beside domestic Malaysia. But unfortunately majority of the domestic routes has been covered by AirAsia due to low cost travelling. Furthermore, there is another low-cost airlines (Mandala Airlines) which operating daily flies directly to Jakarta from Kuala Lumpur, Medan to Singapore. There is an increase on the Mandala Airlines, due to historical links of families and friends in both countries. (Charles Fernandez, Metrobiz, 16 May 2012, page 20)