Market Analysis of Singapore Airlines

Running head: MARKET ANALYSIS OF SINGAPORE AIRLINES
Market Analysis of Singapore Airlines
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MARKET ANALYSIS OF SINGAPORE AIRLINES
Table of Contents
Introduction................................................................................................................................2
Discussion..................................................................................................................................2
1. Nature of the business and the other relevant facts.........................................................2
2. PESTLE Analysis............................................................................................................3
3. Porter’s five forces..........................................................................................................5
4. Recommendations...........................................................................................................7
Conclusion..................................................................................................................................8
References..................................................................................................................................9

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MARKET ANALYSIS OF SINGAPORE AIRLINES
Introduction
Airline industry has rapidly expanded and is still expanding along with the fast
growing industries in the world (Hawken, Lovins & Lovins). This report will elaborate on
one of these airline industries that has highly developed within very little period. It will
briefly discuss about the nature of its business and will expand on its market analysis. The
main purpose of this report is to evaluate the business environment of Singapore Airlines and
the various threats and opportunities that the company is facing in this globalised
marketplace. The analysis of the same will be done through PESTLE and Porter’s five forces
analysis.
Discussion
1. Nature of the business and the other relevant facts
Singapore Airlines (SIA) is a well-established national carrier in Singapore. It represents
the hallmark of the long history of advancement of the Singapore ("Corporate info", 2018). It
is typically engaged in cargo air transportation and passenger transportation; engineering
services and the airport terminal services. They are also engaged in several different activities
such as tour wholesaling and training process of their staffs. It has a global presence but with
a focus on the Australian and Asian markets, with more than 30,088 staffs. It was founded in
the year 1972 and has now become one of the largest and the most successful airline in the
world. It is the second biggest airline in the world in terms of market capitalization. The
Singapore Airlines in fact was formed in the year 1947 by Liverpool, the Ocean Steamship
Company as Malayan Airways but later, it was separated from the Malayan Airways (in
1972) and is known as SIA or Singapore Airlines from then. This widely known industry is
contributing in promotion of world trade, economic growth, tourism and international

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MARKET ANALYSIS OF SINGAPORE AIRLINES
investment since its emergence. I operates in South West Pacific, Europe, East Asia, West
Asia, America and Africa, with near about 66 destinations in thirty six different countries
with over 106 fleets. It consists of a fleet of about 103 aircraft. Some of its reputable fleets
include Boeing 777, A380 and Boeing 747("Our Heritage", 2018). It was the first in the
world to launch the non-stop flight to Los Angeles from Singapore in the year 2007.
2. PESTLE Analysis
The PESTLE framework is concerned with the understanding of the political, economic,
social, technological, legal and the environmental forces that affects an industry or company
and its incumbent organizations (Zvirblis & Zinkeviciute, 2012).
Political- Though the airline industry has now become deregulated but still this industry is
highly controlled by government authorities. The government policy is playing a very
important role in the overall development of the airline industry and it has a major impact of
the competition landscape and the industry profitability (Contributor, 2018). The terrorist
attack in US had a great ramification of profitability in the international airline industry. It
has not only minimized the domestic plane travelling but has also reduced the experience of
global travelling. In this stage, there were heap of factors that are disappointing the services
all the airline industries but still, the Singapore Airlines in terms of performance is better than
the rest of its rival companies after the attack.
Economic- The economic factors includes the economic growth, interest rates, taxation
changes, inflation and exchange rates. As the world economy is expanding, the demand of air
travel is also increasing in a same speed (Belobaba, Odoni & Barnhart, 2015). SIA has
offered to purchase total stakes of nearly 24% in the China Eastern Airlines for near about 7.3
billion dollars. With the same, it has also been plagued by the various other economic factors