Singapore Airlines Cargo: History, Management, and Future Plans Report

This report provides a detailed analysis of Singapore Airlines Cargo (SIA Cargo), a subsidiary of Singapore Airlines. The report begins with a history and background of SIA Cargo, followed by a detailed description of its services and operations. It examines managerial aspects, corporate culture, key individuals, organizational structure, and mission statement. The report further explores SIA Cargo's resources, including vehicles, employees, facilities, and the airports it serves. The analysis then delves into operations, operational philosophies, markets served, and the types of cargo handled, as well as limitations and problems faced. Business relationships, including customers, partners, and code-sharing agreements, are also assessed. Finally, the report considers future plans and concludes with a summary of key findings and comments. The analysis is supported by references to relevant sources.

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AIR CARGO MANAGEMENT

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Table of Contents
Topic History/Background..............................................................................................................2
Detailed description.........................................................................................................................2
Managerial Aspects.........................................................................................................................2
Corporate culture/philosophy..........................................................................................................3
Key individuals involved.................................................................................................................3
Organizational chart.........................................................................................................................4
Mission statement............................................................................................................................4
Resources.........................................................................................................................................5
Vehicles and employees..................................................................................................................5
Key facilities and equipment...........................................................................................................5
Main airports served........................................................................................................................6
Number and type of aircraft.............................................................................................................6
Operations........................................................................................................................................6
Operational philosophies.................................................................................................................7
Markets served.................................................................................................................................7
Types of cargo.................................................................................................................................7
Limitations/problems.......................................................................................................................7
Business Relationships....................................................................................................................8
Principle customers..........................................................................................................................8
Partners, alliances, pacts..................................................................................................................8
Code-sharing, joint ventures............................................................................................................8
Unique agreements, arrangements, etc............................................................................................9
Future Plans.....................................................................................................................................9
Summary/Comments.......................................................................................................................9
References......................................................................................................................................10

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Topic History/Background
Singapore Airlines Cargo (SIA cargo) is a cargo airline based in Singapore. It was a
subsidiary of Singapore Airlines and was incorporated in 1988 (Baxter & Srisaeng, 2018). In
2013, the airline was settled through the price-fixing issue in the US. In the year 2017, it was the
first airline which was awarded "IATA CEIV Pharma Certification”.
Detailed description
In the year 2018, the revenue earned by SIA cargo was S$2,220.1 million, and it also
increase services in different countries that is in 2018 it provides services up to 13 countries
which also include Singapore. In the year 2018, the employees of the airlines were 841 and
operating income of the company was up to S$148.1 million (Faisal, 2019). SIA cargo is one of
the leading airlines because of satisfying the consumers according to their requirements by
providing them quality services.
Managerial Aspects
In the current year, the airline has up to 850 staff members and it provides more than
"900 flights" weekly through its hub in Singapore. The airline is linked with more than 100
destinations (Fan & Lingblad, 2016). The airline focuses on electronic documentation and for
this at adopt "e-Air Waybills" as well as shipments are also tracked through the website of the
airline. Further, to maintain the quality this is evaluated by “Cargo iQ industry standards”.

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Corporate culture/philosophy
SIA cargo adopts an open organizational culture and focuses on providing quality
services to the passengers and the objective is to being best in everything they do (Gao & Choy,
2019). The philosophies of the airline to maintain safety in the internal environment and focuses
on exceeding the customer's expectation by keeping customers first, the further airline also
emphasizes employees' concern. The integrity and teamwork philosophy is also the principles
that airlines used to achieve the objective in the long run.
Key individuals involved
The key individual involves in decision making and developing the strategies and policies
were senior executive vice president, Board of Directors, executive vice president, Chief
Executive officer etc (Iordanova, 2018). Further various countries senior Vice president
connects with the senior vice president of human resource, senior vice president of finance and
administration department etc. The other key person includes senior commercial tech, senior
cabin crew and senior flight operator.

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Organizational chart
SOURCE: (Faisal, 2019)
The company has board members which include chief executive officer, chairman of the
board and director. The other members include the chief financial officer, HR, sales manager etc.
Further, the organizational chart also includes flight operators and Engineers (Faisal, 2019).
Mission statement
The mission of the company is to offer services that are related to air transportation to the
consumers (Singapore Airlines Passengers, 2019). The main concern of the airline is to give

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superior quality services and to earn more profits so that shareholders as well as employees of
the airline will be benefitted through this earning. The airline also focuses on becoming a citizen
of the world through enhancing the well-being of the people.
Resources
It is one of the leading companies which earn more profits, in the long run, the key
resources of the airline include SIA cargo provides dedicated freighter services, offer “more than
900 flights” through Changi Airport (Teker et al., 2016). The company has skilled employees
because f providing training according to the needs and capabilities of the employees. The
attribute of the brand is also a highly powerful resource of the company because of the most
well-known brand and leading company in the airline industry.
Vehicles and employees
In the year 2018 the number of employees in the company was 841 and the key people
include in the airline were the CEO and President of the airline (Warren, 2017). The employees
are highly skilled and competent as well as specialized in the particular department due to
providing efficient training to all the employees. In the current year, airlines provide higher than
900 flights by Singapore, therefore in the year 2019, the freight carrier ship up to '103,200 tonnes
cargo" monthly.
Key facilities and equipment
SIA cargo also provides the facility of offering trucking services in some of the selected
destinations and it also offers charter services for carrying "state-of-the-art racing equipment",

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the airline also used medical equipment, avionics support equipment, construction equipment,
air conditioning equipment (Wirtz & Zeithaml, 2018). These all equipment and facilities are
provided to increase loyalty among the passengers.
Main airports served
The main Airports served y SIA cargo include “Brussels Airport”, “Singapore Changi
Airport’, “Amsterdam Airport Schiphol”, “Sharjah International Airport” (Zentner, 2016).
These are the major hub of the airline this leads in increasing the operating income of airlines
that is in the year 2017 it was S$148.1 million.
Number and type of aircraft
The airline has a wide-body aircraft which is consists of "the Airbus A330, Airbus A350
XWB, Airbus A380, Boeing 777 and Boeing 787 Dreamliner” (Wibowo & Sutandi, 2018). The
airline also does the operation of “Boeing 747-400 cargo aircraft". It is revealed that SIA cargo
provides better services in comparison to their competitors.
Operations
SIA cargo operates freighter aircraft and also administrates Scoot and SilkAir Aircraft,
NokScoot, Singapore Airlines (Sachs, 2018). The number of operations is also increased that is
in the current year airline provided services up to 13 countries in which 19 cities is being served
by the airlines. This results in raising the profits of the airline that is in the year 2018 it was
S$139.0 million.

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Operational philosophies
The operational philosophies of the airline are to manage safety and to do the activities
by determining the requirements of the consumers so that their needs will be served. The other
philosophies of the airline are to maintain integrity and to develop strategies so that the care and
belief of the staff will be taken care (Ravetta, Khorrami, Konig, & Fares, 2018).
Markets served
In the year 2018, the market served by SIA cargo was "Singapore, Seattle, Bali, Tokyo,
Cebu, San Francisco, Koh Samui, Perth, Kuala Lumpur” (Warren, 2017). The increase in
services leads in raising the expansion and new technologies and innovation lead in increasing
the number of the market served by the airline.
Types of cargo
The different types of cargo were “old –sized cargo”, “high-volume movement cargo”
and other cargo includes “Bulk cargo”, “Break-bulk Cargo” (Fan & Lingblad, 2016). These are
several kinds of cargo which airlines used to offer efficient services so that wastage will be
reduced and cost, as well as expenditure, will also be decreased.
Limitations/problems
The different problems which are faced by the SIA cargo include dynamic nature; slow
down of the global economy, changes in the technology and environment of conducting the
activities (Wirtz & Zeithaml, 2018). The other challenge which is suffered by the airline is the
uncertainty of the prices in which fuel prices are changing in continuous terms.

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Business Relationships
The airline has a transparent relationship with the investors and continuously improving
the value of the shareholders. It is because of maintaining the higher standards of
professionalism and adopting the system for managing the risk and problems of SIA cargo
(Zentner, 2016). The airline has a better relationship with their employees and other staff
members in each department.
Principle customers
SIA cargo develops several principles for the customers that are investing more in
research and development to understand customers' needs so that they get a better experience
(Baxter & Srisaeng, 2018). The other principles are to connecting the strategy of the customers
with the overall goal and objective of the airline so that quality services are provided.
Partners, alliances, pacts
In the year 2017, SIA cargo does the partnership through “Rolls-Royce” it is because of
transporting the “Trent 1000 aircraft engines” by the latter's Seletar Assembly and Test Unit
in Singapore to Boeing 787 production facilities in the USA (Warren, 2017).
Code-sharing, joint ventures
SIA cargo manages and operates freights fleet as well as also administrates the whole
activities for managing the capacity of cargo-hold in "Singapore Airlines passenger aircraft". In
the current year, the estimation describes that SIA cargo also came into a joint agreement with
the Cargo Airline which is in China (Teker, Teker, & Güner, 2016).

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Unique agreements, arrangements, etc.
In the year 2018, SIA cargo also signed the agreement of code-share with “Luxembourg-
based Cargolux”. The airline also develops the tracking shipment strategy in which air waybill
number has to be entered to see the status that is 'Air Waybill 1", "Air Waybill 2" etc (Ravetta,
Khorrami, Konig, & Fares, 2018).
Future Plans
SIA cargo plans are to improve the different functions such as planning, operations so
that it will expand more in the international environment. The other future plans are also to
develop strategies to overcome the challenges of rising prices and several other issues. The
airline also wants to enhance the tracking system because of reducing the waste and cost of SIA
cargo (Iordanova, 2018).
Summary/Comments
From the above, it is investigated that SIA cargo is the well-established airline that
provides quality service to the customers. The airline also adopts various values and philosophies
to maintain efficiency in the internal and external environment (Sachs, 2018). The airline earns
more revenue and does joint ventures and partnerships with Cargo Airline in China. The airline
faces some issues which can be resolved through the future plans of SIA cargo.
References

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Baxter, G., & Srisaeng, P. (2018). The strategic deployment of the Airbus A350-900XWB
aircraft in a full-service network carrier route network: The case of Singapore Airlines.
Infrastructure , 3 (3), 25-35.
Faisal, F. (2019). Airline Companies Sustainability. International Journal of Service
Management and Sustainability , 1 (1), 37-47.
Fan, T. P., & Lingblad, M. (2016). Thinking through the meteoric rise of Middle-East carriers
from Singapore Airlines' vantage poin. Journal of Air Transport Management , 54 (3),
111-122.
Gao, Y., & Choy, N. W. (2019). Brand Awareness, Purchase Intention and Price Premium of
International Airlines . International Journal of Aviation, Aeronautics, and Aerospace , 6
(3), 10-15.
Iordanova, D. (2018). Global film at global airlines: a “territory” in the air. Alphaville: Journal
of Film and Screen Media , 5 (3), 171-180.
Ravetta, P. A., Khorrami, M. R., Konig, B., & Fares, E. (2018). Analysis of Simulated and
Experimental Noise Sources of Boeing 777 Main Gear Model via CLEAN in 3D. In 2018
AIAA/CEAS Aeroacoustics Conference , 3470.
Sachs, P. (2018). A plane crash through the eyes of a controller: five years after a Boeing 777
crashed on landing in San Francisco, a former controller reflects on lessons learned.
Journal of Air Traffic Control .
Singapore Singapore Airlines: Annual: Passenger Carried. (2019). Retrieved 10 29, 2019, from
Singapore Airlines Passengers: https://www.ceicdata.com/en/singapore/singapore-
airlines-statistics/singapore-airlines-annual-passenger-carried
Teker, S., Teker, D., & Güner, A. (2016). Financial performance of top 20 airlines. Procedía-
Social and behavioral sciences , 235 (5), 603-610.
Warren, A. (2017). Marketing, consumer psychology and the future of branding within the
Airline industry. Singapore Airlines , 5 (2), 152-160.

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Wibowo, S., & Sutandi, S. (2018). Analisa Rasio Keuangan Garuda Indonesia Airlines,
Singapore Airlines Dan Thailand Airlines Dengan Uji Non-Parametrik. eCo-Buss , 1 (2),
1-7.
Wirtz, J., & Zeithaml, V. (2018). Cost-effective service excellence. Journal of the Academy of
Marketing Science , 46 (1), 59-80.
Zentner, A. (2016). Service as a Strategy: A Review of Singapore Airlines. International Journal
of Service Management , 15 (7), 115-120.