Singapore Airlines Business and Service Operations

Introduction 

The airline industry is affected by various factors such as rivalry by low-cost carriers, underperformance seasons, as well as issues with overcapacity. Other factors that affect the operations in the airline industry include the rising prices of oil, natural disasters such as tsunamis, health epidemics such as bird flu, and the rising terrorism concerns (Pearson and Merkert 2014, 22). Singapore Airlines is one of the few airlines that have been consistently outperforming their competitors for many years. In an industry where many players make losses, this airline has never posted a loss. This exemplary performance is supported by the superior returns made by the airline (Asif and Gouthier 2014, 513). As a result, Singapore Airlines has received numerous awards for its stand-out service and performances in the industry. 

Figure 2: a comparative analysis of Singapore Airline’s dominance in direct flights. United Airlines is the only competitor in the non-stop market into the US. 

The success of Singapore Airlines can also be attributed to the interdependence in its operations. The staff, for example, has the common objective of providing quality customer services. Since much of the initial customer interaction happens at the check-in points, the employees in those points work with efficiency to set the tone and foundation of service provision for the rest of the staff. This interdependence is achieved through the utilization of the airline’s training centers where employees such as cabin crew, management staff, and flight operators are taught about the need for unified motivation in the work place. 

Business Viability 

This airline has positioned itself as a premium carrier with excellent service delivery. Various factors have enabled Singapore airlines to remain profitable in the highly competitive aviation industry. First, this organization has differentiated itself from other airlines through innovation and excellence in service (Anandarajah 2018, 246). Diversification has also been crucial to the sustained success of this airline. The Singapore Airlines Group has various associated companies and subsidiaries such as Singapore airlines cargo, Singapore airlines terminal service, and Singapore engineering company. In addition to that, Singapore Airlines has other airline subsidiaries such as Tiger Airways, where they have 100% ownership, a 49% stake in Silk Air, as well as a 49% stake in Virgin Atlantic (Cook and Billig 2017, 24). These subsidiaries serve key segments in the market. 

Figure 1: a chart representing Singapore Airlines Group’s expansion. 

In addition to the corporate strategy for business viability, Singapore Airlines incorporates an international strategy, through which it has established profitable investments in local and international markets. For example, this airline joined the Star Alliance in 2000, which is a major global airline alliance. In addition, some of the divisions of the Singapore Airlines Group have made investments in India and China, where they have established strategic partnerships with local airline organizations in different areas such as airport services, engineering as well as cargo services (Daft and Albers 2012, 50). 

Information technology has become an important factor for Singapore airlines and other airline organizations around the world. Singapore Airlines utilizes information technology to improve efficiency and enhance its customer services. The airline’s website, which is one of the best interactive and user-friendly in the sector, incorporates advanced features that help customers to perform various functions such as buying tickets, checking into their flights, managing their user accounts, and checking flight schedules (Heracleous, and Wirtz 2014, 152). In addition, customers can access information about promotions and discounts on the website, and choose the meals for their flights. 

The use of information technology has also been effective in reducing costs by eliminating the need for travel agents, most of whom charge commissions that go up to 7.5% for ticketing or reservation services (Duval 2013, 499). Singapore Airlines has a sustained campaign for efficiency and quality. In addition, this airline has been able to offer high quality services to very hard-to-satisfy customers at a comparatively low cost. 

Business Sustainability 

The attainment and maintenance of a competitive edge is a common objective for organizations that seeks sustainability in a competitive global business environment. This has been the approach employed by Singapore Airlines and has kept a focus on human capital investment by establishing a hiring protocol on the longevity of employee periods in the organization (Soriano et al. 2012, 14). For instance, Singapore airlines primarily hire individuals based on age, with respect to the cultural perception and comfort level, ensuring respect to elderly individuals (Healey 2012, 23). Additionally, Singapore airlines management and leadership indicate that younger employees are an easily influenced population that easily follows procedures. The young population has a tendency to grow within a set of organization. 

This was a strategy employed by Singapore airlines to affirm its employee workability. The cabin crew, for example, undergoes a 15 weeks training that not only gives them skills for food and beverage service, they are also trained on how to handle customers in the right manner ( Singaporeair.com, 2018). In addition to such training, Singapore airlines indulge in other community-building activities that are non-airline based to help out in other activities performed at the community level (Idris, Hassan, and Rahman 2010, 27). Despite focusing on innovation and service excellence, the management is aware of the need for cost-effectiveness and profit maximization. 

Image: the sustainability balancing act in Singapore Airlines. 

Environmental Impact 

In more than two decades ago, it was analyzed that development and service design relied on trial and error rather than being based on a predefined architecture. Since then, up to now, things have changed drastically as procedures of manufacturing have been put into place. With an excess of 180 airplanes flying up day by day from the organization, this carrier stays devoted to its long haul duty of protecting the environment without compromising on the quality of their services (Mulyantina 2019, 2). The organization has set up different projects in the quest to actualize sustainable practices with regard to its operations. These practices facilitate the checking of issues such as carbon emission, waste, commotion, as well as the utilization of energy. Furthermore, this airline continues to investigate new feasible practices in all aspects of its activities (Larsen, Sweeney, and Gillick 2012, 60). The fact that the highest temperatures readings in the Arctic region were recorded in the recent past is of concern to this and all other airlines. 

Singapore Airlines has, for a long time, strived to make improvements in fuel efficiency through the execution of different initiatives such as the incorporation of eco-friendly arrangements and methodology and the use of information and analytics to drive effectiveness. Other initiatives applied by the organization for the improvement of efficiency in fuel consumption include the optimization of flight routings as well as the advancement of airplane weight measurement. 

Image: fuel efficiency ranking for transpacific airlines. 

Business Legality 

Singapore Airlines has utilized diversification to reap most cost synergies while ensuring quality control. This ensures that the services of subsidiaries are not only grounds for development but also sources of learning. The company also asserts to its codes of conduct and ethics that all business processes and activities have to be undertaken with utmost transparency, integrity, and honesty. All forms of corruption, fraud, extortion, and bribery or any other behavior that is deemed to be inappropriate are not tolerated by the company (Taneja 2017, 30). Any situation that may pose a potential conflict of interest is always advisable to be reported the management of Singapore Airlines. 

The details and information used in any business relationships with Singapore Airlines, and which is not for the public or proprietary, is always protected against infringement and loss. Any illegal use or disclosure of this information should be reported to the right authorities within the Singapore airline management. The relationships of this organization with its suppliers, distributors, travel agencies, competitors, or any other entities does not interfere with the provision of services to the organization. Furthermore, these relationships are established in a form that portrays ethical business behavior. Environmental laws that apply locally and all practices that are related to waste disposal and air pollution are adhered to (Whyte and Lohmann 2015, 160). In addition, employees of Singapore Airlines are not subjected to discrimination with regard to either racial or national origin, ethnicity, or religion. 

Professionalism 

Professionalism is among the many reasons that have elevated the brand of Singapore airlines. The quality of services offered by this airline, both in-flight and off-flight, makes it stand out as an iconic brand. As a result, Singapore Airlines has won many international awards and has remained to be profitable as well. One of the ways through which this airline has remained successful is the incorporation of professionalism among the staff. This organization has instilled a culture of commitment and the desire for continuous improvement among its employees (Jeeradist, Thawesaengskulthai, and Sangsuwan 2016, 135). The staff has an all-round sense of belonging and pride in the organization and hence perform their duties with total dedication. 

The professionalism of the inflight employees of Singapore airlines is interconnected with Asian values and hospitality to give the customers a pleasant experience during flights. All these employees work to protect the reputation of the airline by providing high-quality services without the need for supervision (Nair, Paulose, Palacios and Tafur 2013, 960). In addition, Singapore Airlines employees always participate in customer interaction programs where they respond to queries, suggestions, or recommendations. 

The high level of professionalism in this organization does not begin and end with personnel. The Economy Class in the aircraft, for example, has levels of comfort that are not available in any other airline. As opposed to the common case of narrow seats in the Economy section in most airlines, the Economy Class seats in Singapore airlines are significantly wide and comfortable for Economy standards (Lawton 2017, 26). In addition, this airline has addressed the common problem of legroom in this Class by providing unmatched adequacy in this area. These services show the commitment if this airline to handle all its customers professionally irrespective of their classes of travel (Kossmann 2017, 54). Other areas where this airline continues to excel in include cleanliness and inflight entertainment. As a result of the professionalism in this airline, customer loyalty is always high. 

Image: Singapore Airlines premium economy class seats. 

Business Ethics 

Singapore Airlines is committed to the achievement of high levels governance in its operations. Business ethics is a crucial guiding principle that is used by the organization in all its global operations. However, this organization has been faced with some accusations of unethical practices in the past. For example, the airline was faced with a price-fixing charge in 2010 to which it had to pay fines amounting to $48 million. In addition, the airline has faced accusations of discrimination and sexism, especially for its recruitment procedures as well as the portrayal of ‘Singaporean Girl,’ which is an identity of the female cabin crew. Attempts by this organization to use the popular Singaporean Girl brand in a promotional campaign dubbed ‘fly with Singaporean Girl’ elicited reactions of women objectification and a stereotypical portrayal of Asian women. In addition, this organization also suffered another ethics scandal for the lack of whistleblowing training and practices. 

Image: the iconic Singapore Girl(s). 

Singapore Airlines has, however, made continuous efforts to improve the incorporation of ethical practices in all its operations. The airline has put in place channels for stakeholders, employees, and the general public to communicate any concerns in any probable misconduct of all matters with confidence (Çalıyurt 2019). This has led to the installation of a whistle-blower program that is accessible to the employees through the intranet of the company as well as other web modules. 

Conclusion 

Maintaining a competitive edge and increasing the market share continues to be among the primary objectives for Singapore Airlines. Some of the catalysts that have been employed by this organization for sustainability in the highly-competitive airline business include innovation, strategy, and quality customer service. The diversity of consumer demands in this industry requires airlines to implement various changes to ensure their survival. For Singapore Airlines, business success has been achieved through the implementation of appropriate changes in various elements such as sustainability, legality, environmental impact, viability, professionalism, and ethics. 

References 

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