Leaders have been unignored even if the difficulty is minor that’s the reason SIA had stayed up on top of ASIA. Everyday management is counting the benefits of the company from bottom lines. That determines benefits are whether sinks or survives. SIA has been achieving a sustainable advantage through the dual strategy.
(1) Singapore Airlines Strategy
In the SIA association have more than twenty direct subsidiaries and interconnected companies, cargo of SIA (one hundred Percentage) (SIA 2008). Include Singapore Airport terminal services (80.8%), and Singapore engineering company (eighty-one Percentage)
(2) By the differentiation and the cost leadership in twin strategy
The two points of differentiation between service and low cost are the dual model elements SIA repeatable model. The two model interlocking forms of differentiation rules between peoples and the leaders make the success.
(3) Turbulence on the horizon
Based on BNP Paribas’ proprietary fuel hedging model, net fuel costs after hedging will estimably fall SGD 1516790000 in FY3/17, based on a jet fuel price of SGD68.95/bbl, similar to current levels.
(4) SIA organisation activity Systems
SIA have five pillars,
(a) Rigorous service design and development
For the service design SIA have one growing Department under this department they test the service before they introduce. “Customers adjust their Expectations according to the brand image when you fly on a good brand like SIA. Your expectations are already sky-high.
(b) innovation in all everything
SIA does not promote constant innovation but also total innovation in everything. Every time is important. Additionally, organisation initiatives include SIA “outstanding service on the ground program, Transforming customer service and soar for service all the rest.”
(C) “profit consciousness” ingrained in all employees.
“its drilled into us from the day we start working for SIA, that’s if we don’t make money we will be closed down, Singapore does not need national airlines, second the company has made a significant visionary statement that we don’t want to be the largest company. We want to be the most profitable, it is very powerful”(Yap Kin Wah)
(D) Achieving synergies through related diversification and infrastructure
SIA Singapore airport terminal is providing some services in the ground at Changi Airport. It is one of the most cost-efficient main Airport. As example landing charges for a 747 are $2000 as opposed to 3500 in Hong Kong and $7500 at Narita (doebele 2005)
(E) Developing staff holistically
This is the fifth pillar of SIA. Into this field, senior managers of SIA understand that “earning is SIA is almost next to guidelines.” The popular “Singapore Girl” undergoes training for 15 weeks. Which is longer than, any other airlines and almost twice as long as the industry average of two months.
Executive summary
As our proposal for SIA is as soon as possible need a new team, the name is “ASCENT”. into this group leaders will develop the business level strategy. Only Ascent group allow for taking the actual decision after corporate leader’s decisions. By the latest news, Singapore Airlines runs in the loss, which is Few and Far between happened. Special to avoid the financial accident this team will be work. ASCENT leaders will be responsible for sustain the achievements in future decade