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CASES IN MANAGEMENT 115

Singapore Airlines :
Gliding with People Excellence
Nilanjan Sengupta and Mousumi Sengupta
Introduction
The aviation industry has been constantly facing several challenges, such as, overcapacity, commoditization of offerings, cut throat rivalry exacerbated by the entry of low cost carriers, and intermittent periods of disastrous under-performance (Costa et al., 2002). Several macro-level socio-economic factors such as rising oil prices, the
SARS (Severe acute respiratory syndrome) crisis, frequent concerns about the eruption of bird flu, the Asian tsunami, and rising terrorism concerns have further impacted profitability, adversely. In 2006, the global airlines industry suffered a net loss of
$500m, or 0.1% of revenues, accumulating net losses of $42bn between
2001 and 2006 (International Air Transport Association, 2007). In 2007, the airline industry made a modest net profit of $5.6bn on revenues of $490bn, equivalent to less than 2% margin (International Air
Transport Association, 2008). The outlook from 2008 onwards remains bleak. Not surprisingly, the industry is regularly rated as one of the worst performing industries in the Fortune Global 500 rankings. In this industry environment, Singapore Airlines (SIA) has consistently outperformed its competitors (Heracleous & Wirtz, 2009).
Copyright ‚ 2014 Shri Dharmasthala Manjunatheshwara
Research Centre for Management Studies (SDMRCMS),
SDMIMD, Mysore
The case writer(s) Nilanjan Sengupta, Professor –HRM & OB and Mousumi
Sengupta, Professor –HRM & OB may be reached at nilanjan@sdmimd.ac.in and mousumi@sdmimd.ac.in respectively. Author(s) have prepared this case as the basis for class discussion rather than to illustrate either effective or ineffective handling of the situation. This publication may not be digitized, photocopied, or otherwise reproduced, posted, or transmitted, without the…...

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