This has helped offset drops in other increasingly competitive markets such as kangaroo route between Australia and Europe for example as Qantas moved its offshore hub to Dubai as part of its partnership with Emirates. SIA still has one of the leading premium products in the industry but there are a lot more airlines at or near the top of the class.
Overly ambitious expansion by SIA competitors, including both full-service flag carriers and LCCs, has led to excess supply.
As a result SIA will have to rely on fifth freedom rights to pursue one-stop growth. The recent deepening of its partnerships with Air New Zealand and Turkish Airlines could be followed with other similar deals. But it has always been a relatively conservative airline, where fundamental change came only slowly and it will take time — likely a couple of years — for there to be any tangible results.
SIA cannot afford to see Tigerair simply vanish. If SIA gets the product right and chooses the right routes, yields should get a much needed boost after a period of declines.
Singapore Airlines annual passenger traffic: Gulf carrier competition will only intensify further as their networks and hubs continue to grow. The premium economy market has gradually matured over the years, making it less of a niche play and a product regularly requested by corporate travel buyers.
SIA has responded by focusing more on regional growth and the budget end of the market. Changi has been working to improve its facility in supporting large scale low cost transfer, but is finding it hard to adapt from its very high quality full service role.
SIA still does not have any partners from the Middle East and has only one limited partnership with a Chinese airline.
Tigerair has been consistently unprofitable in recent years, dragging down SIA Group results. But such rights are challenging to secure as markets such as China, which would be ideal transit stops, for SIA are not open.
While its all-premium non-stop services performed relatively well from a load factor standpoint and was an important selling point in the corporate space, SIA discovered it was simply impossible for such long flights to be profitable.
This is a weakness that will be extremely difficult to reverse, leaving the SIA Group out of the multi-hub strategies being woven by AirAsia and Jetstar. Premium economy will also enable SIA to reduce economy class seat counts at a time when intense competition has made it difficult to secure break-even yields and load factors in economy.
But it may not be enough to stem the tide. Its inability to find codeshare and strategic partners along with its declining market share compared to rivals means China is no longer the strength it once was. SIA cited a weak revenue environment, which impacted yields.
But such comparisons have become uneven as the two groups have evolved differently in recent years. Cathay has a vastly different geographic position as it is at the doorstep to China and operates in a capacity restricted market that has not yet been penetrated by LCCs.
SIA does not partner with any Chinese carriers on domestic connections beyond its Chinese gateways.
Scoot requires short-haul feed to be sustainable. China is still a strategic market for SIA and the group has been able to tap new secondary markets using Scoot, which now operates 12 weekly flights to four Chinese destinations. But other airlines are also now developing new premium products which could emerge as the new trendsetter.
For now though, that is what is happening. SIA and SilkAir operating highlights: This is an impressive and unmatched achievement. While there are huge risks in launching an airline in the Indian market, which remains generally unprofitable due to unfavourable regulations and fundamentals, there is also huge potential upside.
Even some European and North American carriers, which had been multiple generations behind, have closed the gap. The short-term outlook remains bleak but SIA has opportunities to improve its position over the medium to long term.
The new airline should help unlock new growth opportunities for the group. But Singapore Changi remains a leading hub for transit passengers, providing a product and network which remains at or near the top of the industry. But SIA still has a strong position and well known brand in Australia and New Zealand which it should continue to be able to leverage.Below is a list of case studies from Business Case Studies organised by Topic.
Choose your sub topic by clicking the arrowed links below your selected business studies topic heading. The Qantas group aviation industry was established in in Queensland outback of Australia.
It also known in another name is Queensland a. mi-centre.com International Company Profile - SWOT Analysis: Ctrip is China’s leading online travel agency, and recorded rapid growth over the review.
Singapore Airlines SWOT: challenges continue as competition intensifies as shown by 1QFY results. strategic analysis of the world’s largest companies. Analysis of the company’s activities are derived from a global country by country research program.Download