Growth Strategies Case Study

Singapore International Airlines in 2006

OR

Abstract:
Singapore Airlines Limited (SIA), one of the most successful airlines in the world was a favorite among business travelers on long flights. Chew Choong Seng, the CEO, faced the challenge of ensuring that the travelers kept flying SIA even as competition intensified. While full-service airlines were facing a global decline in 2003, with the US and the European Air carriers going bankrupt and slashing staff, flights and passenger amenities, SIA was flying high. In 2004, SIA began its first ever non-stop air services between Singapore and the United States. The major drivers of the SIA brand were innovation, genuine quality and excellent customer service. SIA maintained the youngest fleet of aircraft and replaced older aircraft with newer better models.

Cheong Choong Kong had led SIA through the Asian economic crisis in 1998, when most travelers and airlines were grounded. After taking over SIA in 1984 as CEO, Cheong stretched the airline worldwide. Cheong left in mid-2003 after running SIA for 19 years.

In 2006, SIA faced new competition not only from low cost airlines, but also from players like Emirates Airlines which operated out of a hub in Dubai. The carrier and its base had modeled themselves on SIA and Singapore’s Changi Airport. OneWorld, SkyTeam and Star Alliance (SIA’s partner) were three predominant global alliances. The open-skies restraints forced SIA to join the Star Alliance. SIA had become the sixth largest airline in the world in terms of international passenger-kilometers. Meanwhile, SIA faced various concerns. It was fraught with low yield among all major international airlines due its hub and spoke model.

Pedagogical Objectives:

• To illustrate brand management, customer service management, growth strategies
• To discuss the growth strategies of an airline
• To illustrate the leadership qualities of a CEO and crisis management.

Keywords : Singapore International Airlines; Leadership; Strategy; Managing Global Airline; History of SIA; Quality Customer Service; SARS; Growth Strategies Case Study; Fuel Prices; Cost; Innovation; youngest fleet; Chew Choong Seng; Cheong Choong Kong; Star Alliance; Hub and spoke model

Contents : 
SIA –The brand
Cheong Choong Kong
Chew Choon Seng
Airline Industry
Alliance Network
Operating Performance of SIA
Five Year Financial Summary of SIA Group