April 4, 2018
Business Policy and Strategy
Case Study #3
Singapore Airlines is clearly in a tough spot. Trying to figure out how air travel will be impacted just a week after 9/11 is a monumental task. It’s wise that they are concerned about their $100 million plan to upgrade seats into “spacebeds” in their premiere cabins. But I think that canceling this plan after they have already announced it would be a terrible idea.
Singapore Airlines is an airline dedicated to top-of-the-line customer service. They can’t announce an upgrade of this caliber and then turn around and just not do it. Going back on their word would, in my opinion, tarnish their reputation. Customers don’t particularly care if a company they buy products or services from is going through a hard time – if they’re accustomed to high quality, they will want that same level of quality or higher. They also don’t like being lied to, and I doubt that the customers would be willing to parse through the reasons why Singapore Airlines ultimately decided to not upgrade their seats. SIA said they’d do it, so they better do it. There are other ways in which they can save money.
I think that, first of all, they should audit all of their flights and destinations, and either cut flights to the least popular destinations, or cut back on the number of flights per month to that particular destination. If, for example, they don’t completely fill flights that are going to somewhere in West Asia every week, they should cut it down to every two weeks, or maybe even less...