Singapore Airlines Ltd.

- Company
Profile, Information, Business
Description, History, Background
Information on Singapore Airlines
Ltd.
P.O. Box 501
Airmail Transit Centre
Singapore, 918101
Republic of Singapore

Company Perspectives:
Today, SIA is internationally recognised as one of the world's leading
carriers. Our route network spans over 90 cities in more than 40
countries, we fly the most modern fleet in the industry and we are the
world's largest operator of Boeing 747-400s, which we call MEGATOPs.
But we never forget that we owe our size and commercial success to
our customers. Singapore Airlines was the pioneer of inflight services
such as free drinks and complimentary headsets. With innovations like
our revolutionary KrisWorld interactive entertainment system, we are
still setting the standards today--standards which have made the name
of Singapore Airlines synonymous with impeccable service around the
globe.

History of Singapore Airlines Ltd.

Singapore Airlines Ltd. (SIA), the national airline of Singapore and a
major carrier in the Pacific region with routes to Europe and North
America, is known for its unparalleled customer service as well as for
its continuing efforts to upgrade its aircraft and technology. SIA is 54
percent owned by the Singapore government with minor shareholdings
by Delta Airlines and Swissair. A long-established strategic seaport,
Singapore is an important transit point for travel to other areas of the
Far East. Even during times of severe recession in the airline industry,
SIA has been the world's most consistently profitable airline and,
unlike most, a virtual stranger to debt. The "Singapore Girl" flies to 90
cities in 40 countries.
Imperial Origins
SIA was incorporated in 1972, and its origins date back to the
formation of Malayan Airways Limited (MAL). In 1936 the British
government and Imperial Airways localized air transport in Singapore
and Malaya (now Malaysia) by forming MAL. This new airline was
owned and operated by Imperial Airways and the Ocean Steam Ship
Company and was formally incorporated in Singapore in October 1937.
During this time, however, an Australian company, Wearne Brothers,
began scheduled airline services between what was to be MAL's prime
route, Malaya to Singapore. The first chairman of MAL, Frank Lane,
concluded that the market could not accommodate two carriers
operating this route. Consequently, MAL remained inactive for the next
ten years. World War II and the Japanese occupation of the region
ruled out commercial air transport, and during this period Wearne
Brothers went bankrupt and ceased operations. In 1946 Singapore's
airport reopened, and Britain's renamed national carrier, British
Overseas Airways Corporation (BOAC), agreed to relinquish its control
of MAL to a local concern, the Singapore Straits Steamship Company.
In May 1947 MAL began scheduled services with two Airspeed Consul
airplanes, six pilots, six radio operators, a dozen administrative
personnel, and a few ground crew members. One month later a third
aircraft was added.
The new airline was successful; commercial air transport increased
dramatically after World War II, and initial services between Singapore
and the Malaysian city of Kuala Lumpur were fully booked at M $35
each way. By the end of 1947 MAL had introduced three DC-3s into its
fleet, and within a year of its first flight the airline was carrying 5,000
passengers every month. Over the next two years Bangkok, Rangoon,
and Borneo were added to the destination list, and three more DC-3s
were purchased; during this time MAL gained membership to the
International Air Transport Association (IATA). Rapidly growing as a
major air transport center, Singapore began to attract such established
carriers as Air India. In 1955 the new Paya Lebar Airport, capable of
accommodating jets and large planes, was completed.
In August 1957 Malaya received its independence from Great Britain,
signaling dramatic changes for MAL. The government of Malaya took a
holding in the company, and the Singapore Straits Steamship Company
sold its shareholding to BOAC and the Australian airline Qantas. As a
result of this restructuring, the Malayan government, BOAC, and
Qantas each held a 33 percent stake in MAL. The airline added two
Viscounts to its fleet in 1959 and began offering service to Hong Kong
in 1958. Furthermore, MAL entered the jet age with the loan of a Comet
from BOAC to service its international routes. Profitable every year
since 1948, the company was proving to be a sound investment for its
partners.
In 1963 the Federation of Malaysia was formed, comprising the former
British colonies of Singapore, Sarawak, and Sabah. The airline was
renamed Malaysian Airways Ltd. Under the leadership of Keith
Hamilton, who joined MAL in 1960 after 12 years with Qantas, the
company opened an office in New York to promote travel to Malaysia.
In 1965 Singapore achieved its independence from Malaysia and the
governments of Malaysia and Singapore acquired joint majority control
of the airline in 1966, renaming it Malaysia-Singapore Airlines (MSA).
The year 1968 marked the opening of a new 16-story headquarters
building in Singapore, the commencement of service to Tokyo, and the
purchase of three Boeing 707s and five 737s, making MSA competitive
with other large jet operators. By 1971 service to Rome, London,
Frankfurt, and Sydney was available.
Birth of Singapore Airlines
In April 1970 Malaysia announced that it would establish its own
national carrier for domestic and international flights. This resulted in
the dissolution of MSA and equal distribution of assets between
Malaysia and Singapore. Singapore received all the Boeing aircraft, the
facilities in Singapore, and overseas offices in 18 countries. Malaysia
received the remaining aircraft, facilities within Malaysia, and a cash
payment from Singapore to make up the difference. In June of 1972
Singapore Airlines Limited was formed; its first chairperson was the
former joint chief of MSA, J.Y. Pillay. In July of 1972 Singapore Airlines
(or SIA as it came to be known) purchased its first Boeing 747s, which
would become the mainstay of its fleet. The purchase of these aircraft
coincided with an increase in frequency of flights to such destinations
as Zurich, Athens, Frankfurt, Osaka, London, and Kuala Lumpur, which
it now serviced 11 times daily. An immediate concern of SIA was to
become known as a leader in international air travel. To this end, the
company conceived a marketing strategy that stressed its
commitment to passenger comfort and service and established the
airline's distinctive group of air hostesses. Nicknamed the "Singapore
Girls," the stewardesses, wearing custom-designed oriental sarongs,
became recognized for their friendly and efficient service.
In addition to its marketing campaign, SIA launched a successful
behind-the-scenes lobbying effort to convince various countries to
grant the airline access to their airports. To cope with its growing
number of flights and planes, SIA established a subsidiary
called Singapore Airport Terminal Services Ltd. (SATS) in 1973. The
company also embarked on a large-scale training program for all of its
staff that included a S $20 million training center and several state-of-
the-art flight simulators. By 1975 SIA's lobbying, marketing, and staff
training efforts began to pay off with a 54 percent increase in
passenger traffic that year alone. The fleet now consisted of seven
Boeing 747s, 14 707s, and five 737s.
In addition to facing a large increase in passenger traffic, SIA had to
accommodate a surge in operating costs, brought about not only by
increased expenditures but also by huge increases in the price of oil in
1973 and 1977. SIA survived this crisis by adopting a companywide
cost-cutting program and relying on its loyal customer base. In 1976
SIA's annual passenger volume passed the two million mark--doubling
the 1973 volume--and SIA ranked third among airlines in the Far East
Asia region, behind Japan Air Lines and All Japan Airlines. In 1977
SIA's lobbying of the United States government to grant access rights
paid off, and it began service to San Francisco, Guam, and Honolulu.
Also during this year SIA and the Singapore government announced
plans for a vast new airport in the city of Changi, featuring a new
headquarters building for SIA, a freight terminal for SATS, and an in-
flight catering center. The government provided a five-year plan for the
construction of the airport, which was scheduled for completion in
1981.

In July 1977 SIA announced a joint operation with British Airways to

provide Concorde jet service between Singapore and London, an
arrangement intended to bring prestige to SIA and help British Airways
fully exploit the potential of its new supersonic aircraft. Featuring the
SIA yellow-and-black logo on one side and the British Airways logo on
the other, the aircraft had its maiden flight on December 9, 1977, but
service was halted after three flights because of protests from the
Malaysian government over environmental damage the Concorde
caused while in Malaysian airspace. Full service resumed 13 months
later on a thrice weekly basis via an alternate route and with a stop at
Bahrain in the Persian Gulf. The service was terminated, however, in
November 1980. Nevertheless, the project was deemed a marketing
victory, and SIA became known as one of only four airlines to operate
the supersonic aircraft.
1980s Expansion
In the early 1980s SIA continued to expand its services in the United
States. Weekly flights to Los Angeles via Tokyo began at the end of
1980. The following year marked the opening of Singapore's new
airport at Changi, offering improved service to visitors in Singapore
and giving SIA the opportunity to expand its fleet. During this time, the
comforts of the new airport, along with SIA's renowned customer
service, resulted in SIA being named the top airline in the Asia Pacific
region by customer preference. In response to a growing demand, six
Boeing 747-300s (known as "Big Tops") were acquired, as well as seven
Airbus A310s, to help SIA in its large-capacity routes. The purchases
were part of a plan conceived in 1978 to replace the airline's entire
fleet to decrease maintenance costs and increase punctuality. The
workhorse of SIA's fleet has been the Boeing 747, which accounted for
90 percent of the airline's flight revenues; the company had purchased
more than 50 of the aircraft, including a single order for 20 in February
1986, worth US $3.3 billion to Boeing.
By 1987 SIA's destination network spanned 54 cities in 37 countries,
and the airline had installed one of the world's most modern computer
centers, with a staff of 350, to coordinate and control its flights and
other operations. In recognition of the airline's 40th anniversary that
year, SIA engineers restored the airline's first plane, the Airspeed
Consul. Furthermore, the Singapore government, which held 73 percent
of SIA, floated part of its holding on the Singapore Stock Exchange,
giving foreigners the opportunity to own up to 20 percent of the airline.
Employee holdings remained significant at 17 percent.
Still Climbing in the 1990s
In 1989 SIA teamed with Delta and Swiss Air to create a formidable
global alliance. By 1998 the carrier was also inking agreements
with Lufthansa and Air Canada. It aggressively promoted similar
arrangements with Ansett and Air New Zealand, which greatly
increased SIA's presence in the South Pacific.
Although the carrier continued to grow in the 1990s, controlling costs
remained a necessary priority. SIA used its younger, lower-cost SilkAir
subsidiary to cover gaps in its route network. The company continued
to expand its network, which included 68 cities in 40 countries in 1994.
In response to rising labor expenses, SIA began shopping overseas for
personnel, establishing a software developer in Bombay and investing
in a Chinese maintenance facility and a Cambodian start-up airline. It
continued to seek opportunities to invest in other Asian carriers, such
as China Airlines and Thai Airways International.
In 1992 SIA spun off its maintenance unit, SIA Engineering, which also
continued to grow, building a new hangar at the Changi Airport. In 1998
SIA Engineering entered into joint ventures with Hamilton Standard
and Pratt and Whitney. In 1995 the ground-handling subsidiary, SATS
Airport Services, opened a $150 million multi-tier airfreight terminal.
SIA lobbied worldwide for freer markets in the 1990s, which it said
held the key to industry profits. The traditional system of regulation,
bilateral agreements between individual nations, could only hinder the
world's airlines with inefficiency, according to company officials. In
1992--93 SIA earned an operating profit of $548 million. This figure
reached $657 million in just two years.
Still, the pressures of competition induced SIA to install a "cabin
management interactive system" in every seat. The CMIS gave
passengers a six-inch screen with a choice of six movies, as well as
video games, telephones, etc. The consoles cost $4 million per plane
to install. Other liabilities accrued when the carrier had problems
selling jets as they reached an age of five years. It finally resorted to
leasing the aircraft in slow resale markets.
The Asian financial crisis severely cut into SIA's earnings in the late
1990s, prompting it to examine its global route network for poorly
performing routes. Service to Berlin was canceled in early 1999. Still,
SIA used its ample cash reserves to further upgrade passenger
amenities, spending $300 million to renovate the cabins of its aircraft.
The first two 747s to receive the upgrade were painted in an exotic
livery reminiscent of a tropical sunset. SIA prefixed its traditional
slogan "A great way to fly" with "Now more than ever."
Principal Subsidiaries: Singapore Airport Terminal Services Ltd.; SATS
Apron Services Pte. Ltd.; SATS Airport Services Pte. Ltd.; SATS
Catering Pte. Ltd.; SATS Security Services Private Limited; SilkAir
(Singapore) Private Limited; Tradewinds Tours & Travel Private Limited;
Singapore Aviation and General Insurance Company (Pte.) Limited; SIA
Engineering Company Private Limited; Singapore Flying College Pte.
Ltd.; Aero Laundry & Lines Services Private Limited; Abacus Travel
Systems Pte. Ltd. (61%); Singapore Jamco Private Limited (51%);
Cargo Community Network Pte. Ltd. (51%); Star Kingdom Investment
Limited (Hong Kong); SH tours Ltd. (United Kingdom); Auspice Limited
(Channel Islands); Singapore Airlines (Mauritius) Ltd. (Mauritius);
Airline Software Development Consultancy India (Pvt) Limited (51%);
Eagle Services Asia (49%).

Additional Details
State-Owned Company

Incorporated: 1972 as Singapore Airlines

Employees: 13,500

Sales: S $7,72 billion (US $4.96 billion) (1998)

SICs: 4512 Air Transportation, Scheduled

Further Reference
Allen, Roy, SIA: Take-Off to Success, Singapore: SIA, 1990.Bociurkiw,
Michael, "Time for Champagne," Forbes, December 14, 1998.Donoghue,
J.A., "Superior, Innovative and Adept," Air Transport World, June 1994,
pp. 30--39."Flying Beauty," Economist, December 14, 1991.Leung,
James, "Winging Their Way to Global Might," Asian
Business, December 1996, pp. 24--34.Tanzer, Andrew, "The Prime
Minister Is a Demanding Shareholder," Forbes, April 2, 1990, pp. 152--
53.Westlake, Michael, "Success in the Air," Far Eastern Economic
Review, October 15, 1987, pp. 78--81.

Singapore Airlines cautious about

future
NOVEMBER 9, 2015BY STAFF REPORTS

With uncertainty about Chinas economic conditions, Singapore Airlines (SIA) said that the
outlook for both passenger and cargo traffic is cautious, following the release of its first-
half result for its 2015-16 fiscal year.

The carriers cargo network reported a loss of US$12 million for the six-month period, which
ended in September. But that is still brighter than the $34 million loss it experienced in the
first half of fiscal year 2014-2015. Cargo yield for the first half of 2015-16 declined by 8.5
percent, largely due to lower fuel surcharges, while freight carriage was flat, resulting in a
loss of $86 million, which was offset by a $108 million reduction in expenditures, mostly fuel
costs.

For just the second quarter, SIA Cargo reported an operating loss of $3 million, which was
an improvement over Q2 2014-2015s loss of $16 million. The cargo division was flat in
freight tonne kilometers in the first half, year-over-year, while capacity grew by 2.6 percent.
SIAs load factor fell 1.5 points to 60.7 percent.

The carrier said it plans to increase frequency to destinations in the Americas, Europe,
South West Pacific and North Asia in the third quarter to meet higher demand during the
year-end peak season

Brand Identity Prism by Kapferer

The brand identity prism by Kapferer represents the visible expression of the brand, including its
name, trademark, communications and visual appearance. This is fundamental for customers
recognition and help to symbolize the brand differentiation from competitors.
1) Physique: the set of the brands physical features which come to customers mind when the brand
name is mentioned.

2) Personality: it is the brands character. It represents the way the brand speaks to its customers.

3) Culture: it is the system of values and basic principles the brand base its behavior on.

4) Relationship: it represents the strength of the relationship between the brand and its customer.

5) Reflection: it makes reference to stereotypical user of the brand.

6) Self-image: it is the way customers see themselves compared to a brand

Singapore Airlines

1) Physique

When we speak about Singapore airlines, the first thing that come to customers mind is the
Singapore Girls, who actually are flight stewardesses. They represent the Asian grace and hospitality
and have a unique uniform designed by Parisian couturier Pierre Balmain. They are a very
designated and visual part of the entire brand experience.

The logo of Singapore Airlines is also something important for the brand image and is composed of a
bird also known as the Silver Kris.
2) Personality

Singapore airlines is considered as being a luxury and premium airline. According to the 5
dimensions of brand personality, we can deduce that Singapore Airlines personality is based on
sophistication and excitement thanks to its luxury and innovative image.

3) Culture

The values Singapore Airlines stands for mostly results from the heritage of Asian values and
tradition based on hospitality, kindness, respect, elegance and serenity.

4) Relationship

Singapore Airlines put an emphasis on providing a unique and glamourous travel experience to its
customers. They are very focus on customer satisfaction and they also work on building
relationships with them through high-quality services, personal approach, loyalty program In this
way, Singapore Airlines aim to be the best company not only in the airlines industry, but also in the
entire service sector.

5) Reflection

Singapore Airlines is often associated with high social class and prestige. The stereotypical customer
of the brand can be describe as rich, elegant and multicultural.

6) Self image

Customers of Singapore Airlines will for sure see themselves as unique, privileged and premium
thanks to the premium services offered by the company. This is even more true for the first and
business class who receive unique and personal services but economic classes have also their top
services as on-demand entertainment option, seats innovative design, delightful Asian and
International dishes