Singapore airlines business model

Its cost position without the service levels would substantially reduce loyalty and load factors. SIA has been profitable in every year since its founding in It offers passengers comfort, amenities and attentive personal service from its highly trained staff. Key Activities The Singapore Airlines Group has over 20 subsidiaries, covering a range of airline-related services from cargo to engine overhaul.

Its service without the cost advantage would compromise its ability to outearn and outinvest competitors. Singapore Airlines has a massive resource of around 95 aircrafts that are now bought internally and not leased.

Specific decisions at SIA reinforce both elements of the repeatable model. And, of course, customers like newer planes better. This triggers a virtuous cycle.

The company has always managed to be profitbale and the funds are invested back into the company for continued development. Key Resources Singapore Airlines posses an excellent employee training programme that helps to differentiate their staff from the others.

Yet SIA is also the lowest-cost airline among its key competitors. The company has government ownership as well as private stakeholders. The Singapore Airlines Group continues to invest in related businesses, rather than seek to diversify outside of the aviation industry.

But it ensures repeatability, since SIA can expand into new geographic markets, add new flights and amenities and create innovations that reinforce the model.

Singapore Airlines Business Model

Because mechanical failures are rare, fewer takeoffs are delayed, more arrivals are on time, and fewer flights are canceled.

They also generally replace their aircrafts every 4 to 5 years in order to provide the best ever experience. Singapore Airlines has one of the largest flight kitchens in the world and it is situated in Changi.

Consider the fact that the airline maintains a fleet of relatively new aircraft, less than half the average age of planes in the industry. Their staff goes through a rigorous 4 month training before they are allowed to serve a customer.

Singapore Airlines also has a strong financial background. This makes it one of the most popular hubs in Asia. Costs per available seat kilometer are lower than those of most other Asian airlines and just one-third the level of some traditional European airlines.

It maintains service levels through recruitment procedures, intense training, and a well-developed culture, all combined with regular innovation, such as offering on-demand entertainment in all classes.

It maintains low costs through measures such as rigorous standardization, low maintenance costs and outsourcing of ticketing, payroll and other non-core activities. They are known for their superior service and friendly atmosphere.Singapore Airlines follows a rule of spending: 40% on training, 30% on revising processes and procedures, and 30% on creating new products and services every year.

The Product Innovation Department (PID) follows a highly structured process that includes opportunity identification, concept evaluation, design and development, and launch.

The dual strategy of Singapore Airlines

A business model describes how your company creates, delivers and captures value. Key Partners The main suppliers for Singapore Airlines are Boeing and Airbus. Singapore airlines currently owns 6 different ranges of aircrafts, 4 of which are from Airbus (A and A) and the rest are from Boeing (BoeingBoeing.

Singapore Airlines Business Model. Introduction Singapore Airlines (SIA) has developed into one of the most respected travel brands around the world. Its mission statement: "Singapore Airlines is a global company dedicated to providing air transportation services of the highest quality and to maximizing returns for the benefit of its shareholders and.

Singapore Airlines (SIA) is legendary among business travelers for its customer appeal: it has won Condé Nast Traveler’s Readers’ Choice Award for Global Airlines a remarkable 22 times out of 23 opportunities.

It offers passengers comfort, amenities and attentive personal service from its highly trained staff. Business model Singapore Airlines, the flag carrier of Singapore, prides itself as the airline synonymous with service excellence, particularly dominating the business-travel sector.

It offers 5 classes of seats including Economy, Economy premium, Business class, First Class and Suites [3]. SIA Business Model: Singapore Airlines is the national air carrier of the small island-state of Singapore (population M) carrying M passengers annually.

It is positioned as a premium carrier dedicated to providing air transportation services of the highest quality whilst giving priority to profitability over size.

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Singapore airlines business model
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