Cerbolles, Regine L.

BSA - 4A
Guillen, Gemima A.
Lambayon, John Glenn L.
Mariano, Francis Cedrick T.
Mayormita, Gerryck R.
Pascual, Jedda D.
SWOT Analysis
Singapore Airlines (SIA)

Strengths
1. Automated ticketing or reservation
system , handled by their most
advanced and user-friendly websites,
alongside check-in facilities and
baggage handling operations that are 2. Shorter shelf life of innovations like
also automated
2. Reputable position among award-
giving bodies and airline review
authorities (e.g. Best International
Airline award for the 12th year)
3. Youngest fleet among major
international carriers with an average
aircraft age of 6 years and 5 months
compared to 13 years of other
airlines
4. First-mover advantage in terms of
latest technology and innovation in
aircraft facilities and customer service
(e.g. Oustanding Service on the
Ground program, Transforming
Customer Service, Service
Development, etc.)
5. Self-sufficient training methods of
pilots and cabin crew (e.g. B747-400
flight simulator for training pilots and 6. Large dependence on international
extensive courses for existing and
newly-hired staff)
6. Cost-and-profit consciousness and
total involvement among employees
in all the hierarchical levels enabling
them to deal well with conflicting
excellence and profit goals
7. Strong financial position with no
annual loss since inception as an
independent airline
Weaknesses
1. Aggressive expansion of its own
budget carrier Tiger Airways that
could cut into the profits of the
company
the discontinuation of FAST (Fully
Automated Seamless Travel) and
other programs just recently
implemented
3. Sky-high reputation that attracts
customers with higher expectations
and demands for the best air travel
service
4. Aggressive investment actions by
management like acquisitions of
other international airlines that later
on result to write-offs and
discontinuation (95% write off in
Virgin Atlantic and write-off of 25%
stake in Air New Zealand)
5. Unattractive pricing scheme to leisure
travellers who comprise a large
percentage of air travellers in the
world
flights
8. Solid commitment to cost-effective
service excellence making it as their
competitive advantage against all of
its competitors
9. Employment of broad benchmarking,
not just against its main competitors
but against the best-in-class service
companies
10. Premium service dictates premium
prices which differentiates them from
other carriers, be it full-service or low-
cost airlines
Opportunities
1. Positive attention of the airline
industry from government and
wealthy businessmen on a global
scale (e.g. Aristotle Onassis from
Greece, among others)
2. Demand for air travel expected to
have a 4-5% growth rate in the long
run despite economic turmoil
3. Availability of technologically-
advanced (fuel-efficient and long-
range) high-capacity aircraft like the
A-380 plane and next generation
555-seat megaplane of Airbus in the
market
4. Singapore government’s help in fair
market access for SIA and
infrastructure development like the
ultramodern Changi Airport
5. Major cooperative alliances and
ventures with other airlines from
different parts of the world (e.g. Star
Alliance, partnership with Lufthansa
and other airlines)
6. Political uncertainty among regional
competitors (e.g. political unrest in
Thailand)
7. Economic prosperity of Singapore
affecting SIA as its flag carrier
8. Falling regulatory barriers among
countries with the open skies
agreement of US and European
countries dismantling flight
frequencies restrictions
9. Availability of in-flight entertainment
technology and other facilities in the
market (e.g. Dolby Headphone
Surround, air pressure and humidity
simulator, etc.)
10. Singapore Girl advertisement’s recall
rate of 50% in the Asia-Pacific
Region
11. Favorable relationship with airline
manufacturers like Airbus and Boeing
Threats
1. Instability of fuel prices coupled with
dollar exchange rate risk and risk of
global financial crisis
2. Fierce competition to cover fixed
costs (84% of total cost) resulting into
lowered quality and predictability
3. High government intervention: SIA
flights to Bangkok restricted from
other destinations within Thailand,
fares dictated by government and
heavily regulated flights to and from
the airports of many Asian countries
4. Emergence of budget airlines such
as Air Asia, among others which
occupied regulated routes previously
dominated by SIA
5. Rapid changes in customer demands
for amenities and in-flight experience
6. Easy access to major Asian
destinations by competitors (e.g.
opening of new airports in Hong
Kong and Kuala Lumpur, including
new cargo hubs in Manila)
7. Rising terrorism concerns and spread
of communicable and epidemic
diseases in the global environment
(e.g. SARS, bird flu)
8. Presence of long-range aircraft
(17,500 kilometres capability of
Boeing 777-200 LR) that can bypass
Singapore hubs and fly directly to
Asia-Pacific countries like Australia
9. Presence of higher paying jobs that
can potentially encourage turnover
among employees
10. Alternative modes of transportation
that attracts more price-sensitive
leisure travellers (e.g. use of cars)
12. Industrial relations climate in
Singapore is deemed to be less
adversarial in the airline industry
compared to other industries