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  1. SAMPLE 25

    Focus on Singapore airline, do some general analysis
    General company information, history, fleet, financial performance, route, competitors, strategy, future plan, subsidiary, service, frequent flyer program, alliance,
    it is part of a term project,



Subject Business Pages 6 Style APA


  1. General Company Information

Singapore Airlines Limited is a national flag carrier airline that hails from Singapore but serves international markets. It operates from its primary hub at the Singapore Changi Airport. The airline brands itself using the Singapore Girl figure. It was ranked the best airline in the world in 2018 (Singapore Airlines, 2019). In addition, it won other three top spots including the Best Airline in Asia, Best First Class Airline Seat and Best First Class. During the same year, it was nominated as the 18th most admired company in the world and the first in Asia.

  1. History

Singapore Airlines emerged in 1947 after Imperial Airways, the Straits Steamship Company of Singapore and the Ocean Steamship Company, decided to incorporate the Malayan Airways Limited. This facilitated the creation of an airline whose first chartered flight departed from the Straits Settlements of Singapore to Kuala Lumpur in the same year. The flight used the twin-engine Airspeed Consul aircraft. The company decided to introduce regular weekly flights that were scheduled on specific days from either Kuala Lumpur to Singapore and vice versa. It then expanded the itinerary to include Penang and Ipoh (Advameg Inc., 2019; Singapore Airlines, 2019). The immense success reported on these routes motivated the company to expand its fleets and operations. The process was aided by the Qantas Empire Airways and the BOAC which provided support and technical assistance required to join IATA. By the year 1955, their fleet included several Douglas DC-3s planes (Advameg Inc., 2019). The company was listed in 1957. Malayan Airlines operated the Douglas DC-4 Skymaster aircrafts in addition to Lockheed 1049 Super Constellation, Vickers Viscount, Bristol Britannia, Fokker F27 and the de Havilland Comet 4 for two decades.

After the formation of the Federation of Malaysia in 1963, the airlines changed its name to Malaysian Airways from Malayan Airways. It then acquired Borneo Airways. Singapore decided to leave the Federation of Malaysia in 1966 leading to a change in name to Malaysia-Singapore Airlines (MSA). The airline then registered rapid expansion and growth. It acquired its first ever Boeing aircraft and also constructed a high rise headquarter in the Singapore capital city. MSA decided to separate in 1972 after differing on decisions to either pursue domestic routes or international routes. Singapore Airlines decided to develop international routes. The airline contracted Batey Ads Company to advertise its operations. The management further made the decision to use stewardesses dressed in Kebaya and Sarong as the company’s icon, also known as the Singapore Girls (Heshmati, Kumbhakar, & Kim, 2018). This rebranding allowed for rapid expansion into international markets. The process that begun in 1972 has been ongoing. The firm managed to enter the Indian Subcontinent, Asia, Europe, Canada, USA and South Africa. It currently serves 64 destinations around the globe.

  1. Fleet

The airline operates wide body aircrafts carefully selected from five aircraft families. This includes; Boeing 787, Boeing 777, Airbus A380, Airbus A350 and Airbus A330. As of 17th March, 2019, Singapore Airlines had 122 registered passenger aircrafts in its fleet. A breakdown of these aircrafts and fleets is illustrated in the table below:

Table 1: Fleet and Future Plans for Singapore Airline



Future Plans

Airbus A330-300


They will be replaced by Airbus A350-900 and Boeing 787-10 at the end of 2019

Airbus A350-900


Replacing Airbus A330-300, Boeing 777-200, 777-200ER and 777-300.

Airbus A350-900ULR


Launch operator.

Airbus A380-800


Launch customer.
Older aircraft to be retrofitted to the 471-seat configuration by 2020.

Boeing 777-200


To be replaced by Boeing 787-10 and Airbus A350-900.

Boeing 777-200ER


Boeing 777-300


Boeing 777-300ER


Boeing 777-9

Deliveries for this fleet scheduled to begin in 2021.

Boeing 787-10


Launch customer.




(Sourced from: Singapore Airlines, 2019)


  1. Financial Performance

It is ranked as the 15th largest carrier in the world in regard to revenue per passenger kilometers. The firm has registered improvements in revenue and other financial metrics since the 2008 Global Economic Recession. As at fiscal 2018, Singapore Airlines reported revenues of S$11,583.8 million, operating income of S$703.2 million and net income of S$789.3 million (Singapore Airlines, 2019).

  1. Routes

Singapore Airlines operates in 62 international destinations. This figure includes seasonal destinations in five continents and 32 countries. Australia and India are served with highest number of flights (Taneja, 2016). It flies some of the longest non-stop flights in the world including the non-stop 18 hour flight between Newark and Singapore.

  1. Competitors

Singapore Airline has 13 main competitors both locally and internationally, namely; Air India, Emirates, Etihad Airways, Malaysia Airlines, Qatar Airways, Qantas Airways, Lufthansa, British Airways, Turkish Airlines, Air France, Virgin Atlantic, United Airlines and Jet Airways.

  1. Strategy

Singapore Airlines positions itself as a premium carrier applying the differentiation strategy. This strategy is complemented by the low cost strategy operated as Scoot. The differentiation strategy attracts premium prices as compensation for the excellence services and high level innovations adopted by the airline.

  1. Future Plans

Kindly refer to table 1 on Singapore Airlines future plans.


  1. Subsidiary

Singapore Airline coordinates its operations through many subsidiary firms. This includes SIA Engineering Company which handles repairs, overhaul and maintenance across the nine countries serviced by the airline. This subsidiary has more than 27 joint ventures across these countries including a contractual arrangements with Rolls-Royce and Boeing. The second subsidiary is the Singapore Airlines Cargo whose main task is operating freight fleets. It also manages cargo for passengers. The other subsidiaries include SilkAir which manages regional flights designed to secondary cities (Heshmati et al, 2018). Additionally, Scoot operates as a low-cost carrier that complements the Singapore Airlines. Apart from these subsidiaries, Singapore Airline operates a joint venture carrier with the Tata Sons in India banrded as Vistara. It is managed by the Tata SIA Airlines Limited and serves the domestic market in India. It is based at the Indira Gandhi International Airport hub based in Gurgaon. The joint venture has been in operations since 2015.

  1. Frequent Flier Program

The airlines’ frequent flier program is known as KrisFlyer. The program is also used by all the subsidiaries including Scoot, SilkAir, and Singapore Airlines. The program allows customers to redeem free flights when using Singapore Airlines Group as well as selected partner airlines (Singapore Airlines, 2019). The points could also be mixed with cash and used to purchase flight upgrades and tickets through the KrisShop. The frequent flyer program is divided into tiers such as KrisFlyer, KrisFlyer Elite Silver, KrisFlyer Elite Gold and Priority Passenger Service (PPS) club.

  1. Alliances

Singapore Airline is part of the Star Alliance network. This enables it to access through check-in, joint check-in and baggage facilities, joint ticketing, connection teams at airports to enable smoother travel experiences and co-location of partners. Douglas and Tan (2017) note that the essence of such an alliance is to reduce costs through cost sharing thus maximize profitability.


  1. Singapore Airline’s Impact on Southeast Asia Market

Centre for Asia Pacific Aviation (CAPA) (2015) reports that Singapore Airlines has had an immense impact on the social, cultural and economic dynamics of the Southeast Asia Market. This market is classified under the Association of Southeast Asian Nations (ASEAN) and some of the specific impacts are noted in the way the airline has promoted tourism. The airline transports more than 3.8 million Chinese visitors across the region annually. The region is experiencing 19% annual growth in tourism as a result of efficient transport services. In addition, the good reputation of the Singapore Airlines has fostered business travels to the region thus boosting trade and other economic activities. This has been furthered by air liberalization of the ASEAN member economies through the open sky policy that has created a single aviation market for the region. This has made the region more accessible to the local and international visitors. Mandri-Perrott (2015) associates the airline with the achievement of the Master Plan on ASEAN Connectivity (MPAC) introduced in 2010. Currently the airline has aided the flow of air cargo and passengers across the region thus supporting social progress and economic growth.


Advameg Inc. (2019). Singapore Airlines Ltd. – Company Profile, Information, Business Description, History, Background Information on Singapore Airlines Ltd. Retrieved from https://www.referenceforbusiness.com/history2/38/Singapore-Airlines-Ltd.html

Centre for Asia Pacific Aviation. (2015). Airlines feel the impact as Chinese tourism preferences shift from Southeast Asia to Northeast Asia. Available at: https://centreforaviation.com/analysis/reports/airlines-feel-the-impact-as-chinese-tourism-preferences-shift-from-southeast-asia-to-northeast-asia-228674

Douglas, I., & Tan, D. (2017). Global airline alliances and profitability: A difference-in-difference analysis. Transportation Research Part A: Policy and Practice, 103, 432-443.

Heshmati, A., Kumbhakar, S. C., & Kim, J. (2018). Persistent and transient efficiency of international airlines. European Journal of Transport and Infrastructure Research, 18(2).

Mandri-Perrott, C. (2015). What can we learn from Southeast Asia’s air liberalization policies? Available at: https://www.weforum.org/agenda/2015/10/what-can-we-learn-from-southeast-asias-air-liberalisation-policies/

Singapore Airlines. (2019). Making Every Journey Personal. Available at: https://www.singaporeair.com/en_UK/sg/home

 Taneja, N. K. (2016). Adaptation Strategies by Airlines. In Airline Industry (pp. 101-125). Routledge.


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