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PPT STRUCTURING
SLIDE 1 Facts & Figures
• Number of aircraft: 109
• Number of employees: 14,142
• Passengers per year: 18.3 million
• Sales Revenue (in US$): 9.3 billion
• Number of scheduled destinations: 65
• Daily departures: 220
• Date of entry: April 2000
• Frequent flyer programme: KrisFlyer
• Hubs: Singapore Changi
• Aircraft types: A380, B777-300ER, B777-200ER, B777-300, B777-200, A340-500,
A330-300,B747-400 and B747-400 Freighters
SINGAPORE AIRLINES
SLIDE 2
INTRODUCTION AND HISTORY
Singapore Airlines (SIA)' history can be traced back to May 1947, when Malayan Airways
operated its first commercial flight linking Singapore with Kuala Lumpur, Ipoh and Penang.
The airline was later renamed Malaysian Airways (1963) and Malaysia-Singapore Airlines
(1967), which was split in two in 1972, creating Malaysian Airline System (since renamed
Malaysia Airlines) and SIA. Over a period of more than half a century, SIA has earned a
reputation as an innovative market leader, combining a quality product with excellent service.
SLIDE 3
DESTINATIONS COVERED
SIA, together with its airline subsidiaries, Singapore Airlines Cargo and regional airline
SilkAir, has a route network extending to 65 destinations in 35 countries, serving Asia,
Europe, North America, the Middle East, the South West Pacific, and Africa.
SLIDE 4
SINGAPORE AIRLINES ENJOYS PREMIUM POSITIONING AS THE LEADING
AIRLINE OF THE WORLD
SLIDE 5
STRENGTH 1
SIA CONVERTED THEIR WINNING STRATEGIES INTO LONG TERM STRENGTHS
SIA has one of the youngest fleets of any major airline, with an average age of just over 6
years. The airline operates a fleet of MEGATOP 747s, JUBILEE 777s, A340-500s and took
delivery of its first A380-800 in October 2007.
SLIDE 6
STRENGTH 2
PAR EXCELLENCE IN CUSTOMER SERVICE
Excellence in customer service has been integral to SIA's success. Superb in-flight service is
the cornerstone of its reputation for customer service and hospitality.
SLIDE 7
STRENGTH 3
NEWER PLANES AND LOW MAINTENANCE COSTS
Punctuality of flights and safety of passengers are top priority for SIA.
Over the years, it secured new air planes at bargain prices by taking advantage of the various
offers from the manufacturers.
For example, under the ‘Launch,’ strategy SIA would be the first to try out the latest model
from a particular manufacturer, obviously at a much discounted rate.
SIA would dispose off an aircraft while it still retained high re-sale value
SLIDE 8
STRENGTH 4
LATEST FLIGHT GUIDANCE TECHNOLOGY
SIA has developed a reputation for being an industry trend-setter. The list of industry-leading
innovations by SIA includes being the first to offer free headsets, a choice of meals and free
drinks in Economy Class in the 1970s, and the first with satellite-based in-flight telephones in
1991.
SLIDE 9
STRENTH 5
LATEST IN-FLIGHT GADGETS
In 2001 the airline became the first to introduce a global in-flight e-mail system to all
passengers. SIA has also taken in-flight dining to new heights with the formation of its
International Culinary Panel and World Gourmet Cuisine.
SLIDE 8
WINNING STRTEGIES
“SINGAPORE GIRL”
The care and attention that Singapore Airlines gives its customers, symbolized by the
Singapore Girl, has earned the airline many industry and travel awards, including Conde Nast
Traveller's "Best International Airline" award in 19 out of the last 20 years.
For Young Singaporean Women, a job with SIA was a lucrative and prestigious offer.
SLIDE 8
CREW TRAINING
The chosen few went through a rigorous training program that was popularly described as a
cross between boot camp and finishing school.
SLIDE 9
PROBLEM 1
The tourism industry is still recovering from the after effects of 9/11.
Terrorism combined with global recession adversely affected Tourism, thus
bringing down
SLIDE 10
PROBLEM 2
SIA main competitors included Cathy Airways, Lufthansa, and the Australian
Giants Quantas
All were well equipped to provide world class services along with excellent
backing on Technology and Safety
SLIDE 11
SOLUTIONS
SILK AIR
About 40% of the passengers were connecting from SIA flights, thus adding
further to SIA revenue.
SLIDE 12
FLIER’S MILES
A mileage accrual/ frequent flier’s program across all the three classes.
SIA also instituted the priority passenger service(PPS) which was not a frequent
flier’s program but rather a premium passenger program where members
received special privileges and benefits.
SLIDE 13
STAR ALLIANCE
A global network of 15 airlines that include giants like United Airlines, Lufthansa
and Air Canada.
Passengers could book flights seamlessly over 800 destinations in 120 countries
thereby greatly expanding the SIA customer base.
There were also increased customer benefits for e.g. Straight baggage checking,
sharing airport lounges and help from any member’s office.
SLIDE 14
Local level managers had the authority to settle customer unhappiness on the
spot.
No monetary compensation was paid rather the senior executive would take an
appointment to take the aggrieved individual to lunch and discuss the matter.
SLIDE 15
ONGROUND SERVICE
Special training programs for outstanding service on ground and its different
facets such as check in procedures, boarding and delivery of baggage.
Special benchmarks
Benchmarks are set where the first bag must arrive in ‘x’ minutes after touched
down, and the last bag must arrive within a certain period of time. Failing which,
agents are penalised.
SLIDE 16
SLIDE 17
LABOUR
This changed in 1990 as Singapore’s economy boomed along with other Asian
Tigers.
However the company still attracts a large pool of applicants because a position
with SIA pays very well and is considered prestigious and glamorous.
The recruits are sophisticated, well travelled and most of them have a college
education.
SLIDE 18
EMPLOYEE RECOGNITION
Every year Winning Ways award is given to attendants who receive the best,
unsolicited comments from customers.
Every 2 years the company’s CEO presents a special citation to the top employee
service providers.
SLIDE 19
Growing aggressively
Controlling costs
SLIDE 20
GROWING AGGRESIVELY:
Present growth rate is 5-6% a year which is reasonably good compared to others.
However, nearly all airlines depend on domestic routes for 25-30% of the traffic
SIA cannot afford the luxury as you can drive from one end of the country to
another in a cab.
80% of SIA ‘s revenue came from foreign travellers and 20% from Singaporeans
SLIDE 21
SOLUTION
SIA will continue to invest selectively in other airlines with desirable roots
SLIDE 22
CONTROLLING COSTS
SOLUTION
SIA realised that although small in number business and first class passengers
generated roughly half the airline revenues.
SIA decided to extend the first class experience all the classes which included
enhance on ground service, new in flight cuisine and top of the line coffee
makers
For its 1st class passengers, SIA went beyond expectations by upgrading to
advanced audio visual on demand (AVOD) units which gave passengers almost
200 entertainment options.
Well managed financial operation where the carrying cost is minimal and share
holder funds are increasing on a day to day basis.
SLIDE 24
However the new Space Bed would reduce the number of seats in the economy
class from 58 to 50
Already millions have been spent on R&D and the total budget stands at $100
mil
In the uncertain environment following 9/11 attacks SIA is unsure about going
ahead with the Space Bed plan
SLIDE 25
SOLUTION
They should go ahead with the Space Bed plan as it would give them an edge
over the competitors
SIA has a strong financial backing where their debts stand at US$1 billion while
their shareholder funds are about US$ 10 billion
US$100 mil will not make much difference in long term financial stability