Analysis of Scoot and TigerAir Merger in Singapore's Airline Industry

This report provides a comprehensive analysis of the Scoot and TigerAir merger, focusing on the political, economic, and social factors that influence its success. The report begins with an introduction, followed by an in-depth PESTLE analysis, which examines the political landscape of Singapore, the economic conditions, and the social aspects affecting the airline industry. The analysis highlights the regulatory environment, economic growth, exchange rates, and consumer behavior. The conclusion summarizes the key findings, emphasizing the importance of these factors in the merger's success. References to relevant literature are included to support the analysis. This report is designed to provide a clear understanding of the challenges and opportunities presented by the Scoot and TigerAir merger within the context of the Singaporean airline industry.

Running head: SCOOT AND TIGERAIR MERGER
SCOOT AND TIGERAIR MERGER
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Table of Contents
Introduction......................................................................................................................................2
PESTLE Analysis............................................................................................................................2
Conclusion.......................................................................................................................................3
References........................................................................................................................................4

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Introduction
This report states and discusses the PESTLE analysis of Scoot and TigerAir, as the
companies aim towards establishing a successful merger.
PESTLE Analysis
The PESTLE analysis of Scoot and Tiger Air is furnished below:
Political: Singapore is a democratic country and is one of the countries with minimal political
risk in Asia. The country has the history of no military involvement in civilian and political
matters. The airline industry of Singapore is heavily regulated by the governmental policy
thereby, influencing the profitability and competitive landscape. According to the political
scenario, the safety of the passengers is of topmost priority of the Singapore airline industry.
Additionally, trade agreements between Singapore and other countries are also considered for
their market penetration strategy. Moreover, the eco-friendly approach of the government is also
significant for the Scoot and Tiger Air Merger (Ho 2014).
Economic: The economic factor of Singapore largely affects the Singapore airline industry and
is considered as one of the vibrantly strong and free market economies. Singapore is one of the
fastest developing countries with the highest per capita income among the Asian countries. The
country has a highly educated population with healthy competitive airline market. Previously,
Singapore largely depended on foreign investment but has recently diversified its sources of
income. The economic factor influences airline industry as the sector is closely linked with
national, regional and international economic development. The exchange rate, the price of crude
oil and gross domestic growth has affected the Singapore airline industry. The passenger travel

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demand of Singapore is predicted to rise to 6.9% in 2018 compared to 6.7% growth in 2017
(Singh 2016).
Social: Singapore has a wonderful mixture of eastern and western culture with extremely high
literacy rate. The country has the third most strong purchasing power parity per capita thereby,
providing an opportunity for Scoot and Tiger Air Merger to consider growth strategies that
weave in the contribution of the merger to various social issues. The Scoot and Tiger Air merger
have adopted a company based corporate social responsibility in order to improve their
cooperation as a part of their business (Yashodha 2012).
Conclusion
In this report, it can be concluded that the airline industry of Singapore is a blooming sector due
to immense cooperation politically, economically and socially.

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References
Ho, J.K.K., 2014. Formulation of a systemic PEST analysis for strategic analysis. European
academic research, 2(5), pp.6478-6492.
Singh, A.K., 2016. Selecting Regional Postponement Centre Using PESTLE–AHP–TOPSIS
Methodology: A Case Study in a Pharmaceutical Company. Global Business Review, 17(5),
pp.1266-1268.
Yashodha, Y., 2012. Air Asia Berhad: Strategic analysis of a leading low cost carrier in the
Asian region. Elixir International Journal, pp.11164-11171.