Executive Summary

During the past decades, the airline’s sector grew up very fast, especially thanks to globalization; consequently Singapore Airlines took advantage of this trend to increase its turnover and profit even if the competition was becoming stronger and stronger. Indeed, thanks to a good management SIA had grown faster than its competitors. They focused on a high quality customer service strategy using the best technology along with building of a strong brand. Also, they invested in other related companies, in aircrafts based on technology and innovation.

Singapore Airlines strategy is also making all the process to control and assure a high customer satisfaction. That is to say, more than transporting passengers, they are providing airline catering services, ground, terminal and cargo services. At the same time, Singapore Airlines has also an external strategy of development because, even if the government has the majority in the capital shares, they share the risks and the investment with different partners. Furthermore, they tried to be first everywhere. They have been the first in 2007 to fly in a commercial flight with the A380 and have the record for the longest scheduled commercial flight, with a flying time of over 18 hours each way.

Nowadays, Singapore Airlines is one of the most famous airlines company in term of good services; they won for instance the award of the best business class in 2007. They also have luxury suites that nobody else has in the A380.

Moreover, in term of revenue, SIA group has the 10th biggest revenue with $10,831 million of turnover in March 2008. However, we can see that Singapore Airlines has a really strong strategic management because it is classified as the 3 rd best company in term of profit with $1,389.4 million in March 2008.

However, since the middle of this year, the airline market is going down because of several reasons. In a free market, the success or failure of an individual airline is largely dictated by the quality of the service it provides (Joseph Pillay, Chairman SIA, Harvard Business School, 1989b). Most airlines, seeking to achieve the same deals, were not quite able to match the service reputation set and attained by SIA. Many airlines had to face the apparent contradiction between cutting costs and prices, on the one hand, and maintaining customer focus and delivering customer service, on the other. Moreover, as all sectors, the financial crisis affects a lot airline companies. Indeed, because of investors becoming reluctant and picky, airlines companies cannot develop their activities very well. Also, we are in an environment of saving money, so, less people is travelling, some managers begins to travel in economics’ classes. Furthermore, the price of oil even if nowadays thanks to the crisis is relatively cheaper, the price hit a peak of $147 per barrel in July 2008, and so had a big impact on the profit of airlines companies. As concerned Singapore Airlines, they still have improved their turnover this year. However, even if they are still making an operating profit, it is decreasing since 6 months, but we can say that they are still more competitive than their competitors in the crisis.

To conclude, Singapore Airlines is a very strong brand with a very good management and should keep doing more and more M&A, alliances in order to diversify and to develop its market with always a focus on its core activities, the air transportation services.

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AGENDAA) COMPANY OVERVIEW

1) Company History2) Owners and shareholders3) Profit History4) Major events of the last 5 years

B) THE COMPANY’S MODEL1) The airlines operations

a. Passenger air transportationb. Cargo air transportationc. The terminal servicesd. Services engineering

2) Breakdown of turnover by business model/segment3) International activities: breakdown of activities by geographical area

C) CORE COMPETENCIESD) COMPETITIVE ENVIRONMENT OF EACH BUSINESS SEGMENT

1) Description of main competitorsa. All Nippon Airwaysb. British Airwaysc. Cathay Pacificd. Quantas

2) Turnover, profits and market share of competitors3) Market dynamics4) Market evolution5) Market potential

E) THE COMPANY’S MARKET VALUE1) Profit history: the evolution of key accounting figures

a. Singapore Airlines group Financial Highlightsb. Situations of 2 big competitors, British Airways and Malaysia Airlinesc. The change in the trend of airlines companies this yeard. Why do the airplane companies have to face this situation?

2) Share price history and market capitalizationa. Singapore Airlines Ltdb. The competitorsc. Situation of the Airline sectord. Analysts recommendations as concerned the share prices of Singapore

AirlinesF) STRATEGY FOR DEVELOPMENT

1) The beginning or the past2) Methods of growth: INTERNAL AND EXTERNAL3) General analysis

a. The reasons that pushed SIAb. A future of firstsc. What’s next?

G) GENERAL OPINION ON THE ENTIRE STRATEGY OF THE COMPANY

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A) COMPANY OVERVIEW:

1) Company History

Singapore airline (SIA) is the national airline of Singapore. It ranks among the top 10 carriers worldwide in terms of revenue passengers kilometres; actually SIA has the two longest non-stop flights in the world: from Singapore to Newark and from Singapore to L.A. This company is well known in terms of innovation, safety and service excellence. It has won numerous awards, such as one for having the best business class in 2007.

Singapore Airlines began with the incorporation of Malayan Airways Limited (MAL) on 12 October 1947 with Company of Singapore and Imperial Airways. It is the result of the government in place at that time. The company’s first flight was a chartered flight from the British Straits Settlement of Singapore to Kuala Lumpur on April 2nd 1947 using an Airspeed Consul twin-engine airplane.

MSA ceased operations in 1972, when political disagreements between Singapore and Malaysia resulted in the formation of two entities: Singapore Airlines and Malaysian Airlines System. SIA saw a rapid growth during the 1970s, adding cities in the Indian subcontinent and Asia, and adding Boeing 747s to its fleet.

New services to United States, Canada, European cities with Madrid were created in the 1980s. Madrid became the first Hispanic city to be served by SIA. The Boeing 747-400s called Megatops were introduced into SIA fleet in 1989. Then to complete their fleet, they have introduced the latest planes from Boeing and Airbus (Boeing 777s, Airbus A310 and Airbus A340s). New routes were extended to southern Africa in the 1990s, with introducing flights to Johannesburg and cities like Cape Town and Durban.

In 2004, utilising an Airbus A340-500, Singapore Airlines began non-stop trans-Pacific flights from Singapore to Los Angeles and Newark. These flights marked the first non-stop air services between Singapore and the USA. The Singapore to Newark flight is the record for the longest scheduled commercial flight, with a flying time of over 18 hours each way. Beginning in May 2008 Singapore Airlines began converting the five Airbus A340-500 to a business class model only for its routes to Newark and Los Angeles.

SIA was the first airline company to have a commercial flight on the A380. In fact, on 25 October 2007, flight SQ 380 flew 455 passengers from Singapore to Sydney. This was a huge public relation event because it received a significant attention from the media. All the revenue from this flight was donated to three charities in a ceremony the next day in Sydney. On October 2007, SIA began regular services on the A380.

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2) Owners and shareholders

Singapore Airlines is the parent airline company of the Singapore Airlines Group of companies. The Singapore Government is the majority shareholder with 54% shareholding.However, according to the Singapore’s Government, they are not involved in the management of the company.

List of Major Shareholders

Temasek Holdings 54,39%DBS Nominees (Pte) Ltd 14,56%Citibank Nominees (Singapore) Pte Ltd 6,27%HSBC (Singapore) Noms Pte Ltd 4,59%OTHERS 9,17%General Public 11,02%

3) Profit History

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The group recorded revenues of S$15,972.5 million (approximately $10,831 million) during the financial year ended March, 2008 (FY2008), an increase of 10.2% over 2007. The operating profit of the group was S$2,124.5 million (approximately $1,441 million) during FY2008, an increase of 61.6% over 2007. The net profit was S$2,049 million (approximately $1,389.4 million) in FY2008, a decrease of 3.8% over 2007.

4) Major events of the last five years

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In the past five years, unlike other companies SIA has not face any major crisis such as crashes, or plane hijacking. In 2004, SIA began non-stop trans-Pacific flights from Singapore to L.A. and Newark.In 2005, after placing an order for A380, they wanted to fly the planes by 2006 with the slogan “First to fly the A380” – “experience the difference in 2006”. However the A380 got delayed not of a few months but of a full year. That was a lost for SIA who did loose money on this.In 2006, the Australian Government decided not to grant fifth freedom rights to Singapore Airlines from Australia to the United States. This was a lost of a potential market. In reality the Australian government wants to protect Quantas.In 2007, SIA is the first airline company to use the A380 as a commercial fly and the first to introduce suites in its first class.SIA won Several Awards such as having 1st rank at the Best Business Class Award in 2007.

B) THE COMPANY’S MODEL:

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Business models and strategic areas:

Singapore Airlines along with its subsidiaries is engaged in some activities such as airline operations, airport terminal services, engineering services, and other related activities.That means only three main segments constitute the activities of the company: the airlines operations, airport terminal services and engineering services.

1) The airlines operations:

This segment includes passenger and cargo air transportation and it is carried out by Singapore Airlines and it is wholly owned subsidiary, Silk Air (Singapore) Private. Mission: “We are a global company dedicated to providing air transportation services of the highest quality and to earning good returns for shareholders”.

a) Passenger air transportation: It is the most important segment of the company, the core competency of SIA.

Indeed. More, in that segment the company has continual improvements in order to better satisfy its customers. The key points considered for that are:

o Target : As the company delivers premium services based on quality and value, and nowadays

the flying has become so stressful, people are willing to pay a little more for a better experience. That means the customers of Singapore Airlines concerned mainly people enough money to travel in a certain comfort. Moreover, as the company was routinely voted (Heracleous L., Wirtz J., and Johnston R., 2004, “Cost Effective Service Excellence –Lessons from Singapore Airlines”, Business Strategy Review) as the “best for punctuality”, we can also put hurried people such as business in the target of the company.

o Strategy : In this segment the company uses a focus strategy as point of differentiation. That is

delivering a “unique selling proposition”. Indeed, since the beginning, Singapore Airlines chose to strategically be positioned into premium services emphasized in quality and value in order to be the leader in that industry.

This strategy is based on:

o Innovation : the company created a luxury travel experience and retained the glamour of the long-distance travel. Thus, many innovations support that. For example, at first we have the iconic Singapore girls (easily come to mind) costumed in a specially designed version of the graceful Malay sarong kebaya, designed by renowned fashion house, Pierre Balmain and representing the Asian value and culture; the company was the first in -seat TVs and offered more channels than any airline and also put some luxurious suites in their planes.

o Best technology : SIA is always trying to use the latest aircrafts to maintain the youth of its fleet (which average age is 6.6 years). Singapore Airlines recognizes

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that each innovation has a relatively short life span. Once other airlines adopt it, it is no longer considered "innovative". Therefore, the airline continues to invest heavily in R&D, innovation and technology as an integrated part of the business strategy to further differentiate itself.

o Strong brand strategy : Iconic Singapore girls, the heart of the services delivered by SIA. They represent a very powerful idea and have become a successful brand icon with an almost mythical status and aura around her. The Singapore Girl encapsulates Asian values and hospitality, and could be described as caring, warm, gentle, elegant and serene. It is a brilliant personification of SIA's commitment to service and quality excellence. SIA engaged French haute-couture designer Pierre Balmain at the inauguration of the airline in 1972. He designed a special version of the Malay sarong kebaya as the uniform which later became one of the most recognized signatures of the airline. A very designated and visual part of the entire brand experience. All this means that the iconic Singapore girl is a main tool of marketing, promotion and communication and a king of customerization for SIA across the world.

o Excellent customer service : the “raison d’être” for SIA.Mr Yap Kim Wah, SIA’s Senior Vice President responsible for Product and Service, explained “We have a high reputation for service and that means that when someone flies with us they come with high expectations. But still we want them to come away saying ‘Wow! That was something out of the ordinary’.” Thus, to deliver suitable propositions to the high expectations of the customers, the company put a big emphasis on:

Consistency of personalization: enhancing soft skills such as warmth, care and anticipation of needs where the competition can not easily imitate.

Total approach: the company is aware that the customers buy the totality, so the package or the components have to be excellent (quality, value delivered).

Understand costumers and anticipating their needs: by listening to them (their compliments and complaints) and also the front line staff, by understanding the different lifestyles.

Training of the front line staff: in topics such as deals to stress and others related to lifestyles and all to drive the different technologies in which the company invested huge amounts. There are two types of training: the functional training (equipping people with skills to do their job, to make them technically competent and confident) and the managerial one (delivered by THE SIA Management Development Centre and concerned soft skills).

Team’s concept: to create “un esprit de corps” among its cabin crew. But it is difficult to achieve in the sense there are many planes and locations and crews are dispatched according to that.

Communication and motivation: with regular corporate-wide business meetings and briefings to keep staff informed of the latest developments; there are also company’s newsletters and circulars. Behind that is to encourage good service.

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Picture of a suite in an airbus A380 of Singapore Airlines

o Positioning: SIA had developed a very strong market position. While keeping an eye on costs, its quality and service-enhancement strategy allowed it to command a relative market price premium position through premium service, value and quality. This good is mainly due to the main role of the iconic girl that makes fragile also the brand strategy. That means it should be difficult to make some changes in that strategy by risking losing customers.

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b) Cargo air transportation: The Company’s cargo air transportation is carried out by SIA Cargo, a subsidiary of

Singapore Airlines, with 14 B747 400 freighters. SIA cargo operates in around 70 cities across the world.

o Target : passengers of SIA.o Services : airfreight and deliver services. o Strategy : focus on enhanced quality and value.o Positioning : SIA is among the leaders, the top 10 (you can see the table below in the

part D called Turnover, profits and market share of competitors (key numbers and ratios).

o Values : they are the same through all the segments. That means SIA always try to be excellent in what it does with tight relationships with partners and being pro-corporate responsibility system.

c) The terminal services: This segment is carried out by SATS (Singapore Air Terminal Services).

o Mission : To be the first-choice provider of Airline Ground Services and In flight Solutions.

o Target : leading international airlines such as British Airways, Cathay Pacific, EVA Air, Qantas, Singapore Airlines and United Airlines; and also tailored service offerings to specially suit the specific requirements of low-cost carrier clients, such as Jetstar and Valuair.

o Services :o Airport Services : (53.3%) ground and cargo handling; aviation securityo Food Services: (43.3%) in-flight catering; manufacturing and distribution of

chilled and frozen food.o Others : (3.4%) airline laundry; cargo delivery; commercial leasing.

o Strategy : oriented customer strategy.o Positioning : Largest network in Asia with dominant presence (41 airports across 9

countries).

Good reputation and brand name (recently rated top 3 most-admired company overall in Singapore in Asia 200 surveys 2008 – The Wall Street Journal Asia 5-7 Sep 08). Good relationship and understanding of Asian & Middle Eastern airlines.o Values : carrying the SATS’ brand promise and achieve excellence in everything the

company does with tight relationships with partners and being pro-corporate responsibility system.

o Vision : The main aim is to be one of the largest Services companies in the world by maintaining innovation and customer intimacy, creating new value propositions for its clients, exciting growth opportunities for the its employees, partners and

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associates & sustainable enterprise value for its stakeholders and fulfilling its corporate social responsibilities.

d) Services engineering:

o Mission : providing aviation engineering services of the highest quality, at competitive prices for customers and a profit to the Company.

o Target : major airlines from four continents.o Services : Provides repair and overhaul (MRO) services in airframe, component,

engine, aircraft conversions and modifications. Its growing network of line maintenance support is extended to more than 40 airports in Australia, China, Indonesia and the Philippines.

o Strategy : focus on quality and value.o Positioning : among the leaders, the top 10.o Values :

o Pursuit of Excellence : strive for the highest professional standards in our work and aim to be the best in everything we do.

o Safety : maintain and adopt practices that promote the safety of our customers and staff.

o Customer First : customers are foremost in our minds all the time. o Concern for Staff : care for the well-being of its staff and treat them with

respect and dignity and seek to provide them with appropriate training and development so that they can lead fulfilling careers.

2) Breakdown of turnover by business model/segment:

CONTRIBUTION TO GROUP OPERATING PROFIT – FY2007/08

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As we can see in the above table for the fiscal year 2007/08, the segment that generates more profits for the company is the passenger air services (SIA), the core activity, with 77.4%, followed by Air terminal services (8.2%) and SIA Cargo (6.2%) and engineering services or company segment (SIAEC) brings 4.8% of profits.

3) International activities: breakdown of activities by geographical area

Singapore Airlines operates passenger services in 65 countries across Asia, Europe, America and Africa:

o East Asia: largest geographical market with 52.6% of the total revenue in the fiscal year 2007

o Europe: accounted for 17.2% of the total revenue in the fiscal year 2007o South west Pacific: accounted for 13.5% of the total revenue in the fiscal year 2007o America: with 9% of the total revenue in the fiscal year 2007o West Asia and Africa: with 7.7% of the total revenue in the fiscal year 2007

C) CORE COMPETENCES:

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Before analysing the core competencies, one should understand that Singapore Airline provides a service and that its goal is to provide the best service possible along with values such as Excellency and luxury.SIA’s core competencies include the skills of its top management at planning marketing strategies and the interpersonal skills of its flight attendants. Making flights as comfortable as possible is what they do best.

How does the business make use of the competencies?The Group's principal activities are providing passenger and cargo air transportation, airport terminal services, engineering services, training of pilots, air charters and tour wholesaling and related activities. The Group operates in East and West Asia, South West Pacific, Americas, Africa and Europe.

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The group uses its core competencies when getting involved in new airline companies. For instance, it can be for a low cost company such as Tiger airways, or au contraire with companies such as virgin Atlantic.

D) COMPETITIVE ENVIRONMENT OF EACH BUSINESS SEGMENT:

1) Description of main competitors

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As per our findings from Market Line, Singapore Airlines faces competitions from below listed companies in its worldwide services. However, we have jolted down 4 main competitors for Singapore Airlines including the market leader British Airways.

a) All Nippon AirwaysAll Nippon Airways Co. Ltd. (ANA) is Japan's second largest airline and serves 49 local and 22 international destinations. It is headquartered in Tokyo, Japan and employs about 30, 300 people. In addition to its airline business, the company is also involved in travel services, hotels, trading and sales, and ground transportation and distribution. The company operates through four business segments: air transportation, travel services, hotel operations and other businesses. The air transportation segment primarily provides passenger, cargo, and mail transportation services. The segment operates or conducts air transportation and other operations through ANA, Air Nippon Company and Air Japan Company. In addition, it also provides various services that include loading and removal of catering equipment from aircraft, operation of staff canteens, preparation of in-flight meals, aircraft ground support operations, maintenance, repair, and improvement of aircraft and equipment, maintenance and development of training equipment for cabin crews. The segment operates three business divisions that include domestic passenger, international passenger and cargo and mail operations division.

b) British AirwaysThe company primarily operates in Europe and the Americas. The company is

headquartered in Harmondsworth, Middlesex and employed around 42,377 people as on March 31, 2008. The company also has its operations spread across Far East Asia, Australia, Africa, Middle East and the Indian sub-continent. Its Asia Pacific Routes gives SIA very tough

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competition. British Airways is one of the world's largest scheduled international passenger airlines. The company's airline route network comprises around 300 destinations all over the world. In FY2008, the company carried more than 33 million passengers. The company's principal base is the Heathrow International Airport, where the company carries an estimated 41% of the airport's passengers. In addition, the company has a second base of operations at Gatwick, London. The company operates offices, maintenance hangars, and other support facilities at Heathrow, Gatwick and other UK airports. The company also occupies space and desks under lease or license in airports throughout the UK including Manchester, Birmingham, Newcastle, Edinburgh and Glasgow.

c) Cathay PacificCathay Pacific is an international airline based in Hong Kong. It offers scheduled cargo

and passenger services to 113 destinations in 37 countries and territories. The company operates in Asia, Europe, China, Africa and the US. As of December 2007, the company had 93 passenger aircraft and 19 freighters. The company transported 23,253,000 passengers and carried 1,642,000 tons of cargo in 2007. Cathay Pacific ranks as is the world's 11th most profitable airline and 20th largest airline in the world by virtue of its operating margin.The company operates through three key business segments: passenger services; cargo services; and catering, recoveries and other services.The company's passenger services provide domestic and international air transport. The company provides passenger services through the Hong Kong Dragon Airlines Limited (Dragonair), a wholly owned subsidiary integrated in 2006. In 2006, five new destinations were added to the Dragonair network and many routes were strengthened to improve connections with Cathay Pacific's international network. Cathay Pacific offers leisure travel service and also operates Hong Kong Airport Services Limited (HAS), a wholly owned subsidiary of the company.

d) QantasThe group operates primarily in Australia, Europe, Americas, Japan, Asia, and New

Zealand. It is headquartered in Mascot, New South Wales, Australia and employed 34,267 people as on June 30, 2007. Qantas Airways purchased Australian Airlines in 1993, which positioned the group as the principal air operator in Australia. In the same year, the Australian government sold its 25% share of the group to British Airways as the first step towards privatization. In April 2007, the group formed a new inbound tourism business, Tour East Australia based in Sydney. In the same month, Qantas Airways signed an investment agreement with the State Capital Investment Corporation (SCIC), the investment holding arm of the Vietnamese Government, to purchase a 30% stake in Pacific Airlines, Vietnam's second largest carrier.

2) Turnover, profits and market share of competitors

The top competitors for Singapore Airlines in Asia Pacific region is Cathay Pacific, Qantas Airlines and All Nippon Airways. The Key Financial Ratios are compared for these companies are compared.

All Numbers in US $ (in Millions, Base Year 2005)

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Key Ratios/ Numbers*

All Nippon British Airways Cathay Pacific Qantas

Total Current Assets 3,916.0 5,343.9 2,225.9 2,825.1

Total Current Liabilities

4,709.2 5,599.4 2,492.0 3,529.6

Current Ratio 0.831564 0.95437 0.893218 0.800402Net Operating Cash Flow

1,386.1 1,042.0 1,183.8 1,484.9

Cost of Goods Sold 6,359.1 7,136.0 3,517.5 5,796.8

Total Assets Turnover 0.425691 0.3511569 0.3205829 0.4197751Long Term Debt 6,860.1 8,166.1 2,271.3 3,986.2

Shareholder’s Equity 2,087.4 3,652.8 4,225.2 4,894.1

Debt Equity Ratio 3.286433 2.235573 0.53756 0.814491Net Profit Margin 2.1% 4.6% 11.3% 6.0%

Net Income After Taxes

260.8 373.0 580.8 582.1

Total Assets 14,938.3 20,321.4 10,972.2 13,809.3

Return on Assets 0.0174585 0.018355 0.0529338 0.0421528Gross Profit Margin 47.1% 8.7% 30.0% 39.8%

Return on Equity 0.12494 0.102113 0.137461 0.118939*Key Ratios and Balance Sheet Figures are taken from http://www.hoovers.com, yahoo finance; BASE Year 2005 is taken into account for the above analysis

Airline * Revenue 2007 (Turnover) Net Profit 2007 AMR Corporation $22,935 million $504 million Air New Zealand $2,948.1 million $146.8 million Nippon Airways $11.6 billion , March 2006 $200 million British Airways $17,572.3 million , March 2008 $1,365.2 million Cathay Pacific  $9,659.4 million $900.2 million China Airlines $3,678.9 million (-$76.7 million) Continental Airlines $14,232 million $459 million Delta Airlines $19,154 million $1,612 million Japan Airlines $19,704.4 million (-$139.2 million ) Korean Airlines $9,516.9 million $12.1 million Northwest Airlines  $12,528 million $2,093 million Qantas Airlines $11,919 million $565.4 million US Airways $11,700 million $427 million Virgin Airways £2,140 million £46.8 million Singapore Airlines $10,831 million , March 2008 $1,389.4 million

*Revenue Figures: Market Line

3) Market dynamics The geographic location of Singapore in Asia Pacific is vital to emerging economies and

their growing demand in passenger aviation and cargo transportation. The airline industry in Singapore is characterized by strong supplier power; a consequence of the global duopoly of Boeing and Airbus that exists in the manufacture of aircraft globally. The air industry in Singapore has been deregulated to a certain extent, which makes it more attractive for new

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entrants, although the bureaucracy and large financial outlay involved in setting up an airline serve as a deterrent to new companies. The desire for relatively fast international travel means that other forms of transport pose no more than a moderate threat to air travel.

Buyer PowerPresence of online booking sites that allow customers to compare and contrast tickets according to price, flight times and number of stops en route and travel agents who assist customers in finding the best deal. In response to the ease of switching from one player to another, many airlines offer loyalty schemes such as Singapore Airlines’ ‘KrisFlyer’ program.

Supplier PowerGlobally, Boeing and Airbus are the only manufactures of airliners. A number of airlines have formed partnerships or alliances with other airlines in order to buy fuel or purchase aircraft as a bloc, thereby achieving higher bargaining power and reducing supplier power.

New EntrantsA new company must apply to Civil Aviation Authority of Singapore for an air operator certificate. This is a complex process and takes months, during which time it is difficult to generate any revenues. Entering the market as a new company requires considerable capital (for example, to acquire a fleet of planes); and, given for an existing company to begin operating in Singapore, the market may impose significant costs in terms of overheads, wages, and so on. Access to good distribution channels may be difficult.

SubstitutesSingapore is a small country, and there are no domestic flights. There is a comprehensive bus network that provides frequent and efficient services along with a convenient Mass Rapid Transit (MRT) subway system that is relatively inexpensive. Some consumers may see the greater environmental impact of air travel as a significant disadvantage compared to rail. Singapore is the southern terminus of Malaysia's rail system, and three trains go to Kuala Lumpur each day. A bus service links Singapore to almost all large Malaysian cities with fares that are generally inexpensive. There are also ferry links with Malaysia and islands in

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Indonesian archipelago, although these may be time-consuming and only serve certain destinations.

RivalryLow-cost competitors have provided a key competitive challenge in recent years. Consumers can switch between different airlines quite easily, although the players at the high end of the industry differentiate their products in terms of quality of service, which makes it difficult for them to abandon completely the more expensive services they offer for low-budget alternatives. Fixed costs are likely to be high which also tends to intensify rivalry.

4) Market evolution

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Allied Units of Singapore AirlinesSingapore Airport Terminal Services LtdSingapore Airport Terminal Services (SATS) Group earned a profit attributable to equity holders of $178 million in the year in review Expansion into the region continued, with significant contract wins in India and China.SubsidiariesSATS, in partnership with Air India, won the cargo and ground handling franchises at the upcoming new Bangalore International Airport. Taj-SATS Air Catering, a SATS associated company, was awarded the in-flight catering franchise as well. In China, SATS associated companies, Beijing Aviation Ground Services and Beijing Airport In-flight Kitchen, extended their reach to eight regional airports in China.

SIA Engineering CompanySIA Engineering Company (SIAEC) Group earned a profit attributable to equity holders of $242 million in the financial year ending 31 March 2007.In August 2006, SIAEC became the second company in the world to enter the B747-400 Passenger-to-Freighter (PTF) conversion business. In January 2007, it successfully completed its first B747-400 PTF conversion for Hong Kong’s Dragonair Cargo, making it one of the first PTF conversions in the world to be completed.

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As at 31 March 2007, the Airline operated 764 weekly flights to 65 destinations in 35 countries. Taking into account code share services with Star Alliance and partner airlines, the route network grew to 144 destinations in 43 countries.The revenues for Singapore Airlines are

continuing to increase owing to its stupendous performance in customer care and efficient logistics systems. The profit margin is growing at a double digit from 10.1% to 14.7%

The Singaporean airline industry grew by 11.6% in 2006 to reach a value of $5.6 billion. The compound annual growth rate of the industry in the period 2002-2006 was 10.1%.Singapore Airline’s continuous improvement in

delivering service not only ensures superior ROE but it makes sure it has loyal customer base. Tourism is thriving in Asia-Pacific Region because many Asians now have disposable income. Continuous innovation to manage in-flight services establishes SIA a leading brand across major airlines in the world.

Singapore Airlines CargoSingapore Airlines Cargo (SIA Cargo) made a profit of $31 million during the year in review. During the year in review, SIA Cargo secured several key global accounts with organisers of major international events. A total of 14 charter flights were operated for four Formula One races, including three charters carrying racing vehicles and media equipment in and out of Sao Paulo, Brazil. Five charter flights carrying motor bicycles were also operated for Moto Grand Prix races in Japan, Malaysia and Doha. SIA Cargo was also selected by NOKIA Corporation for the third successive year as one of its preferred carriers for its intra-Asia and Asia to South-Pacific c and Middle-East distribution.

SilkAirSilkAir performed well during the year in review, generating a profit t of $20 million despite rising fuel costs and a highly competitive environment. The airline grew capacity on its existing network by 17 percent. SilkAir’s charter revenue registered good growth, increasing 125 percent over the previous year, as a result of charters to Christmas Island in Australia, Guiyang and Nanning in China as well as Udon Thani in Thailand. SilkAir was voted ‘Best Regional Airline’ for the seventh time in 2006 by readers of Asia Pacific’s leading travel publication TTG Asia. It was also the only regional airline to be featured in the top ten of Travel + Leisure’s ‘World’sBest Airlines’ list for the second consecutive year.(Reference: Annual Report 2007, Singapore Airlines)

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5) Market Potential

The Singapore airlines industry generated total revenues of $5.6 billion in 2006, this representing a compound annual growth rate (CAGR) of 10.1% for the period spanning 2002-2006. In comparison, the Chinese and South Korean industries grew with CAGRs of 15.4% and 8.6% over the same period, to reach respective values of $16.8 billion and $6.8 billion in 2006. Airline passenger volumes increased with a CAGR of 5.2% between 2002-2006, to reach a total of 16.7 million people in 2006. The industry's volume is expected to rise to 24 million people by the end of 2011, this representing a CAGR of 7.5% for the 2006-2011 period. The international segment generated all of the industry’s passenger volumes in 2006.This was a volume of 16.7 million people, equivalent to 100% of the industry's overall volume. The performance of the industry is forecast to decelerate, with an anticipated CAGR of 8.3% for the five-year period 2006-2011 expected to drive the industry to a value of $8.3 billion by the end of 2011. Comparatively, the Chinese and South Korean industries will grow with CAGRs of 17.5% and 9.2% respectively over the same period, to reach respective values of $37.6 billion and $10.5 billion in 2011. (Reference: Data Monitor Report, Airlines in Singapore)

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E) THE COMPANY’S MARKET VALUE:

1) Profit history: the evolution of key accounting figures

a) Singapore Airlines Group Financial Highlights

Year ended  

Revenue(S$m)  

Expenditure(S$m)  

Operating profit

(S$m)  

Profit beforetaxation (S$m)  

Profit attributable toequity holders

(S$m)  

EPS after tax– diluted (cents)  

31 March 1999

7,795.9 6,941.5 854.4 1,116.8 1,033.2 80.6

31 March 2000

9,018.8 7,850.0 1,168.8 1,463.9 1,163.8 91.4

31 March 2001

9,951.3 8,604.6 1,346.7 1,904.7 1,549.3 126.5

31 March 2002

9,382.8 8,458.2 924.6 925.6 631.7 51.9

31 March 2003

10,515.0 9,797.9 717.1 976.8 1,064.8 87.4

31 March 2004

9,761.9 9,081.5 680.4 820.9 849.3 69.7

31 March 2005

12,012.9 10,657.4 1,355.5 1,829.4 1,389.3 113.9

31 March 2006

13,341.1 12,127.8 1,213.3 1,662.1 1,240.7 101.3

31 March 2007

14,494.4 13,180.0 1,314.4 2,284.6 2,128.8 170.8

31 March 2008

15,972.5 13,848.0 2,124.5 2,547.2 2,049.4 166.1

% (99-08) +104,88% +99,49% +148,65% +128,08% +98,35% +106,08%

Group Revenue ($ millions)

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OPERATING PROFIT

The financial situation until the end of March 2008 of Singapore Airlines was really going in a good way. All the financial ratios have increased at least of 100% from 1999 to 2008. For instance, the revenue was in March 2008 $15,972.5M whereas it was only

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$7,795.9 in March 1999. The operating profit was only $ 854M in March 1999 whereas it was $ 2125 in March 2008, so increased of 148.65% in the last 10 years with an impressive increased of 61.6% during the last year. Furthermore, Singapore Airlines in 2007, like we saw before was the third best airline company in term of profit, so we can imagine they will do better for the fiscal year 2008 as we can see the 2008 profit (until 31 of March) which increased by 61%.

b) Situation of 2 big competitors, British Airways and Malaysia Airlines

British Airways

Year Ended  Turnover (£m) turnover usd$Net Profit/Loss (£m) 

Basic EPS (p)  

31 March 2002 8340 13427,7894 -142 (13.2)

31 March 2003 7688 12378,0389 130 6.7

31 March 2004 7560 12171,9529 130 12.1

31 March 2005 7772 12513,2828 392 35.2

31 March 2006 8515 13709,5475 467 40.4

31 March 2006 (Restated)* 8213 13223,3134 464 40.4

31 March 2007 8492 13672,5165 438 25.5

31 March 2008 8753 14092,7386 696 59.0

Malaysia Airlines

Year Ended  revenue(RM '000) revenue usd$ net profit EPS

31 December 2002 8864385 $2 472 080,15 336,531 38.7

31 December 2003 8780820 $2 448 775,73 461,143 36.8

31 December 2004 11364309 $3 169 253,44 326,07 26.0

31 December 2005 9181338 $2 560 471,30 (1,251,603) (100.20)

31 December 2006 13489549 $3 761 935,69 -133,737 (10.90)

31 December 2007 15288640 $4 263 662,22 852,743 58.05

30 June 2008 7527569 $2 099 271,85 160,508 6.77

We can notice than the revenue of Malaysia Airlines which is a strong competitor of Singapore Airlines in Asia had growing up of 72% the last 5 years.

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Concerning British Airways, its revenue is growing but much slower comparing with Singapore Airlines since 2005. Indeed, the turnover had only growing up of 5% the last 7 years when during the last 10 years Singapore Airlines did almost 105%.

As concern the profit, we can notice that Singapore Airlines has the best increased of operating profit comparing with its competitors with 148% of growth in 10 years. Of course British Airways has good results but it’s not the same for Malaysia Airlines which have often losses. Moreover, comparing with the revenue higher of British Airways, Singapore Airlines has a better profit, that means a better management and financial situation.

To summarise the comparison with the main competitors of Singapore Airlines, they all have the same trend of growing up until the beginning of 2008, but less quickly than SIA.

c) The change in the trend of airlines companies this year:

Concerning this fiscal year, that is to say from April 2008 to March 2009, Singapore Airlines seems to forecast a considerable decreased in its profit.What is the situation at the end of the 2nd quarter (September 30th)?

GROUP REVENUE AFTER THE 2ND QUARTER OF THE YEAR (SEPTEMBER 30th)

GROUP OPERATING PROFIT AFTER THE 2nd QUARTER OF THE YEAR (September 30th)

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We can observe that the group revenue is still increasing but the operating profit have decreased of 41.4% as concerned the first term of this year. Indeed, Singapore Airlines announced a 36 per cent fall in profits for the 2009 fiscal year. According to the Business Times “The profit of Singapore Airlines, the world's most valuable carrier, in the three months to September 30 had fallen to S$324 million (163,748 million of Euros)”. However, we can notice that this trend is similar for the entire airline sector, it’s even worse for many other competitors. They all see the number of their passengers decreasing and their net profit too.

d) Why do the airplane companies have to face this situation?

First, the financial crisis affects considerably the financial situation of all these companies. They need a lot of investments to continue to grow. Consequently, they cannot generate more activities and the revenue and profit are slowing down. However, this situation is not only due to the financial crisis. Indeed, analysts believe the combination of record high fuel prices during the summer and falling consumer demand devastated profits. Oil hit a peak of $147 a barrel in July but thanks in part of the financial crisis the oil price is now $61, which allow a break for airlines companies.

2) Share price history and market capitalization of the company

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a) Singapore Airlines Ltd:

The share price of Singapore Airlines company was $11,42 (6,05502 EUR) on November 12th:

Its Volume is composed of 1,799,000 sharesIts Market Capital is $14,014.78M (7.430,97 M Eur)Its Shares Out is 1,185.68M Its EPS (TTM) is $1.50 Its Dividend & Yield is 1.55 (13.58)

Source :reuters.com (Singapore Stock Exchange)

Singapore Airlines has seen its share price fallen by 29 per cent since the beginning of this year. However, the big fall of the share price is probably due to the financial crisis that began in September. Indeed, we can notice that the share price was still around $15 at the beginning of September.

b) The competitors o British Airways PLC (London stock Exchange)

The share price of Bristish Airways company was 143.10 GBp (171,133 EUR) on November 12th.

Its Volume is 13,388,167 Its Market Capital is 1,811.20pM (2.168,87 M EUR)Its Shares Out are 1,153.63M Its EPS (TTM) is 0.13p Its Dividends & Yield are 5.00 (3.49)

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Source :reuters.com

Here too, concerning British Airways, the share price has fallen of 62% during this year with a big fall since the middle of September.

o Malaysian Airline Company Bhd (Kuala Lumpur Stock Exchange)

The share price of Malaysian Airline company was 2.80 MYR (0,620758 EUR) on November 12th.

Its is Volume 193,600 Its Market Capital is RM 4,678.78M (1.037,07 M EUR)Its Shares Out is 1,670.99M Its EPS (TTM) is RM0.48 Its Dividends & Yield are 0.03 (0.89)

Source: Kuala Lumpur Stock Exchange

Here too, the share price of Malaysian Airlines has decreased of 25% between May and November 2008 with a big fall since the middle of September.

To summarise, when we observe the trend of the share price of the 2 main competitors of Singapore Airlines, we can say that the situation is globally the same. Indeed, we saw that Singapore Airlines lost 29% of the value of its share price since the beginning of the year, BA's share price has fallen 62 % in the past year and Malaysia Airlines lost 25% between May and November 2008.

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For information, all the competitors have seen this year its share price fallen. For instance, Cathay Pacific has fallen by 54 per cent and Qantas by 47 per cent. Moreover, due to the financial crisis, we observe that all airlines companies like many others have seen their share price decreasing a lot in the same period, that is to say since the middle of September.

Concerning the market capitalization, we can observe that Singapore Airlines have a much bigger market capitalization than its 2 main competitors. With 7 billions dollars, we can consider that Singapore Airlines has a mid-caps market capitalization. Consequently, they have all the advantages of big-caps and small caps. IMS Capital Management says that over the past 20 years, mid-caps enjoyed a higher overall return than either large or small caps. SIA is a group which the stability is there when we are seeing 7 billions of dollars of Market capital and at the same time not as big as the leaders; consequently, they should continue to grow to be a leader in the future. It can show the well being of the company if they continue to grow as they did the last few years. So, they will attract without any problems new shareholders if they need more investment.

c) Situation of the Airline sector:

All airlines companies have to face with the financial crisis this year. It’s the first time since the SARS epidemic in 2003 that we saw the global air traffic shrank said the International Air Transport Association. For example, Deutsche Lufthansa, Frankfurt's biggest customer have transported 1.4 percent fewer passengers in October than a year earlier meanwhile they raised the fees to land by 2 percent to help offset the impact of falling passenger numbers. However, the analysts think that in 2009, the situation in the airline industry will grow again. Indeed, according to an industry conference, when the impact of the global financial crisis has passed, the air traffic should double every 15 to 20 years.

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d) Analysts recommendations as concerned the share prices of Singapore Airlines:

According to Reuter’s analysis of November 12th, the consensus recommendation is to hold.

Analyst Recommendations and Revisions :

1-5 Linear Scale Current1 Month

Ago2 Month

Ago3 Month

Ago(1) BUY 3 4 6 5(2) OUTPERFORM 3 3 5 5(3) HOLD 4 2 2 2

(4) UNDERPERFORM 2 2 0 0(5) SELL 2 2 1 0No Opinion 0 0 0 0

Mean Rating 2.79 2.62 1.93 1.75

As you can see on this scale, analysts think it’s time to hold the shares. It could also be interesting to buy SIA shares even if it was more interesting few months ago. On the other hand, we are quite sure that selling would be a bad idea. As we saw before Singapore Airlines is in “the Mid-Caps” Market, so we can say that they are relatively stable and they should continue to growth in order to be the leader of the airline sector, especially in Asia and on the luxurious market.

o How can we explain this situation?

The company has to deal with the financial crisis in this period. Consequently, the value of its share price is decreasing. However, the demand should be increasing from January and all ratios seem to persuade that SIA is going to make more profit in the future. The return on investment is 9.95 for SIA for only 0.26 in the industry and 2.31 in the airline sector. The return on assets for SIA is 7.18 when it’s 0.19 in the industry and 1.44 in the airline sector.The gross Margin is for SIA of 43.88 and only 2.26 for the industry and 8.64 for the airline sector. The net profit Margin is for SIA of 11.14 and only 0.30 for the industry and 0.39 for the airline sector. To summarise, all ratio show the good financial situation of Singapore Airlines and even if its share price is decreasing because of the crisis, the high price of oil and less passengers, we can be optimist for the future. Moreover, to be in a Mid-Caps market, SIA should have certain stability and at the same time should continue to grow. As IMS Capital Management says, mid-caps enjoyed a higher overall return than either large or small caps. Consequently, if you have SIA shares, hold them.

F) STRATEGY FOR DEVELOPMENT

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Since its beginning, SIA is facing diverse strategies of development: from focus to diversification including internal and external growth methods.Three periods will be analysed to know the different strategies used.

1) The beginning or the past

focus strategy:

They have a strategic plan under which a firm concentrates its resources on entering or expanding in a narrow market or industry segment. It is usually employed where the firm knows its segment and has products to competitively satisfy its needs. Focus strategy is one of three generic marketing strategies (see differentiation strategy and low cost strategy for the other two) that can be adopted by any firm. In our context, we can say SIA by remaining specialised in air transportation services (passengers) start with the focus strategy.

o 1) From May 1947 to 1972 . SIA was in alliance (in transportation services) with Malaysian Airways Limited (MAL).

o 2) From 1972 to 1989 : The alliance ceased due to political disagreements between Singapore and Malaysia. At this period, SIA started to modernize its services by choosing the luxury as range of services (always in passengers’ air transportation). The result was a rapid growth.

o 3) In the 1970s: SIA saw a rapid growth. And according to Mr Yong Nyuk Lin, then Minister for Communications at the welcoming ceremony of the first 2 SIA-Boeing 747s at Paya Lebar Airport on Monday 3 September 1973:” May I emphasise that SIA as an organisation will continue to succeed only so long as the men and women behind it will not relax but continue to work diligently, plan boldly, and strive for excellence in performance”.

The modern history: mixture of focus and diversification.

Diversification is a form of growth marketing strategy for a company. It seeks to increase profitability through greater sales volume obtained from new products and new markets. Diversification can occur either at the business unit or at the corporate level. At the business unit level, it is most likely to expand into a new segment of an industry in which the business is already in. At the corporate level, it is generally very interesting entering a promising business outside of the scope of the existing business unit. It the case of SIA, the diversification concerned the business unit level. Singapore Airlines has diversified into related industries and sectors, including ground handling, aircraft leasing, aviation engineering, air catering, and tour operations. It has also developed strategic alliances, partnerships and acquisitions.

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o From 1989 to nowadays : The airline has invested in other airlines in a bid to expand beyond its Singapore base, although the results are often financially negative. In 1989, it went into a tripartite alliance with Delta Air Lines and Swissair,[41] but terminated their partnership in 1999 after divesting their 5% equity stake in each other's company.

The airline purchased 25% of Air New Zealand in 2000. However, following the near collapse of Air New Zealand the New Zealand government bought into the airline to rescue it from bankruptcy, reducing Singapore Airlines' stake to 4.5%. This was subsequently sold in October 2004 at a substantial loss. Boeing 747-400 lined up for taking off at London Heathrow Airport, England.

SIA bought a 49% stake in Virgin Atlantic Airways on 30 March 2000 worth 600 million pounds in cash in the hope of leveraging on it on the lucrative transatlantic market, but by 2007, there has been reports of underperformance and the possibility of divesting its stake. On 14 May 2008, the company formally announced an invitation for offers for its Virgin Atlantic stake, and publicly acknowledged that its stake in the airline has "underperformed".

In September 2004, the airline entered the low-cost carrier market by establishing Tiger Airways with a 49% stake, in partnership with Indigo Partners LLC, the investment firm founded by Bill Franke, (24%); Irelandia Investments Limited, the private investment arm of Tony Ryan and his family, (16%); and Temasek Holdings Pte Ltd (11%).

Company   Type Principal activities  

Incorporated in

Group's   equity   Shareholding  (31 March 2007)  

Singapore Aero Engine Services Private Limited

Joint venture

Engine overhaul

Singapore 41%

International Engine Component Overhaul Private Limited

Joint venture

Aircraft overhaul

Singapore

41%

Virgin Atlantic Limited

Associate Holding company

United Kingdom

49%

Tiger Airways Private Limited Associate Low-Cost

Airline Singapore 49%

TajSATS Air Catering

Joint Venture

Catering India 50%

Singapore Airport Terminal Services Limited

Subsidiary Holding company Singapore 81.9%

SIA Engineering Company Limited

Subsidiary Engineering

Singapore 81.9%

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Singapore Flying College Private Limited

Subsidiary Flight schoolSingapore 100%

Singapore Airlines Cargo Private Limited

Subsidiary Cargo airlineSingapore 100%

SilkAir (Singapore) Private Limited

Subsidiary AirlineSingapore 100%

2) Methods of growth: INTERNAL AND EXTERNAL

o From 1947 to 1972: SIA was developing via an alliance with Malaysia Airlines System (MAL).That means the growth was due to the external way (costs and investments shared).

o From 1972 to 1989: The alliance was over; so SIA had to count on itself by using its internal resources/competencies (even if it is the parent airline company of the Singapore Airlines Group of companies).

o From 1989 to nowadays: SIA is developing more and more partnerships and M&A as we can see in the above table. Thais growth is supported by:

External ways: SIA share costs and investment with the partners.

Internal ways: SIA is among the leader, so has a good financial performance due to its excellent customer services): Singapore Airlines generates revenues through four business divisions: airline operations (95.6%) of the total revenues during FY2008), engineering services (2.1%), airport terminal services (1.8%), and others (0.5%).

3) General analysis

It was just around at the beginning of the 1990s that we can deeply analyse the different strategies used by SIA. That means since this period to nowadays, SIA knew:

A focus strategy based on specialisation on a certain segment or industry (transportation services, mainly in passenger one. To succeed in that strategy, a company has to always find out some new ideas (innovation). Indeed, SIA has a continual improvement services.

A diversification strategy based on investment via acquisition, joint-ventures, alliance into related services in order to support the main activity, the air transportation services. But the danger with this kind of strategy is the ability to have high financial performance to

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support investments for excellent customer services. Again with that strategy the company has enough cash flow, money to support that (it has a positive financial performance).

a) The reasons that pushed SIA :

To focus: to be leader and maintain its position in that industry by offering innovative, excellent and selective air transportation services than the competition; and the strong role of the iconic Singapore girl in the branding strategy. (It has a good positioning in the market, received many awards). But, it might be risky for SIA if there is no diversification of its activities at a corporate level. Indeed, it could be dependant to that industry (the competition is getting hard and stronger) and it cannot put more changes in its brand strategy (iconic girl) because it is the main point of its success.

To diversify: SIA diversified into related services in order to support and having a full control into that industry (from the passenger to the ground services and also to take care of its aircrafts with the engineering services). Moreover, SIA is developing its market by new destinations (e.g.: in New Zealand).

b) What’s next?

SIA should keep doing more and more M&A, alliances in order to diversify and to develop its market, but always a focus on the core activities (air transportation services). Indeed, this last point is the point of differentiation of SIA. The latter point retains all the attention of the different managers in order to always and fully meets the high expectations of the customers.

c) A future of firsts:

Singapore Airlines made Aviation history when the Airline became the first to operate the world's largest aircraft, the A380, on the 25 October 2007 between Singapore and Sydney. The A380 also operates to and from London and between Singapore and Tokyo.

In addition, Singapore Airlines introduced its Suites - in a class beyond First, together with cabin improvements in all other classes while still providing excellent service. The future promises to bring more firsts like these, as Singapore Airlines continually strives to drive quality service through innovation.

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G) GENERAL OPINION ON THE ENTIRE STRATEGY OF THE COMPANY

The strategy of Singapore Airlines seems to be successful thanks to their strong brand and the high quality of their services. Indeed, SIA is an innovator and more than the price, they want to reach all the time their main goal: the customer satisfaction. Indeed, we saw in this report that SIA achieved well its goals. However, nowadays, with the actual economy, things are changing. Consequently, to stay efficient, they have to be constantly aware of these changes and of the new needs and behaviour of their customers and of the potential market. Are they going to continue to take the right decisions?

What keeps the chief executive awake at night?

The chief executive of Singapore Airlines must have to think about the challenges SIA has to face in near future. Firstly, Due to the current increase in prices in aviation fuels, SIA has to decide whether to cut down new routes or replace old aeroplanes.

SIA has already established itself a leading brand among Airline Industry, so to maintain its own benchmark it has to perform consistently. But the most striking issue involves aeroplane emissions causes a lot of damage to environment which leads to Global Warming. International protocols on Aviation Emissions are inevitable in this regard.

The competition in South East Asia is expanding to rest of Asia, Europe and America. Lots of new age airlines like Kingfisher Airlines based in India, regional airlines like Thai and Malaysian Airlines are bound to challenge SIA’s market leadership in the region. Also, competitions from its arch rival Cathay Pacific are bound to get further intensify. SIA’s business model is being critically analyzed by its main competitors. Old Giants such as British Airways, Qantas, Japan Airlines and Continental Airways will further intensify the competition.

The training programs of its in-flight crew and ground staffs for SIA are now being analysed sharply by every airlines operating in international routes. So, the chief executive has to make sure SIA continues to deliver service excellence in its operations. But the chief executive will derive confidence from SIA’s main philosophy that is to continuously innovate and improvise in every quarter of its operation.

Managers have to be careful of the strategy based mainly around the Singapore Girls. Indeed, the day this will become old-fashion, it can become obsolete and so SIA will lose customers. Managers have to think if it’s time to change soon this strategy or not.

Lastly, the low cost airlines that operate in South East Asia, will keep away a large segment of probable passengers at bay. But with Emerging Asia, and SIA’s zeal to give its passengers ‘the very best of customer experience…’ the future looks exciting.

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Question we could ask?

Q1) The on going global recession is bound to make an impact on SIA’s strategy. How SIA is going to cope up with the on going global recession, with people are certain to cut down their expenditure?

Q2) Is the SIA strategy of growing by all the possible ways, by merger and acquisition or in diversifying its activities (catering, terminal and ground services) not going to affect its main activity and goal, the high quality of services in passengers’ transportation?

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SOURCES:

http://www.timing.net/stock-market-article5.php http://www.mcbup.com/research_registers/tdev.asp article“Beyond Singapore Girls” www.hoovers.com “Singapore Airlines Winning’ formula” by Zellna “The story of Singapore Airlines and the Singapore Girl” by Daniel Chan Reuters.com Wikipedia.org Business times magazine EBSCO (Sup de Co extranet) Market line (Sup de Co extranet) Yahoo finance Singapore Airlines finance website:

http://www.singaporeair.com/saa/en_UK/content/company_info/investor/financials.jsp “Managing human resources for service excellence and cost effectiveness at Singapore

Airlines” by Jochen Wirtz Sinagapore Airlines: The excellence in services by Jochen Wirtz and Robert Johnston. London Stock Exchange Singapore Stock Exchange Kuala Lumpur Stock Exchange

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