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Positioning, Repositioning, Reverse Positioning Strategies Case Study

Case Title:

Singapore Airlines Redefines Long-haul Travel with All-business Class: Will it Pay-off?

Publication Year : 2010

Authors: J Thadamalla and J Babu

Industry: Transportation

Region:Global

Case Code: POS0041IRC

Teaching Note: Not Available

Structured Assignment: Not Available

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Abstract:
Singapore Airlines introduced a second non-stop all-business class on the Singapore-US route in less than three months after it began a similar service to Newark Liberty International Airport, New Jersey in 2008. Singapore Airlines known for innovation, genuine quality, a trendsetter and excellent customer service was popular among air travellers. But, the industry experts questioned the viability of the long-haul flights when several such flights were closed especially in the transatlantic route, due to the slow down in the global economy, an historic rise in fuel prices and a decrease in passenger traffic. According to the International Air Transport Association, international passenger traffic grew 4.3% in January 2008 compared to 6.7% in December 2007 and 7.4% for the entire year 2007. It remained to be seen, how Singapore Airlines plans to manage its affairs and keep up its image of trendsetter and sustain its all-business class model in the wake of a globally decreasing passenger traffic growth rate.

Pedagogical Objectives:

  • To attractiveness of business class travel in long-haul air travel.
  • To differentiation and first mover advantage for Singapore Airlines
  • To brand leveraging for Singapore Airlines.

Keywords :  Long-haul air travel, What is transatlantic air route? Growth drivers of air travel, Economic liberalisation, Singapore Airlines, Emergence and growth of Singapore Airlines, Barriers to long-haul air travel, All-business class air service, Expansion strategies, Brand extension

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