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Singapore Airlines Essay

1823 words - 8 pages

Singapore Airlines, one of the best airlines in the world, began with the incorporation of Malayan Airways on May 1st, 1947. This incorporation was made by the Ocean Steamship Company of Liverpool, the Straits Steamship Company of Singapore and Imperial Airways. On April 2nd, 1947, a Malayan Airways flight was chartered by five businessmen from Singapore’s Kallang Airport to Kuala Lumpur, and the flight was made using an Airspeed Consul twin- engine aircraft. After this chartered flight, on May 1st, 1947, the same aircraft type realized three weekly schedules flights from Singapore Kallang Airport to Kuala Lumpur and the states Penang and Ipoh.
Malayan Airways continued its expansion ...view middle of the document...

In addition, it was seen the culmination of a new high-rise headquarters in Singapore, and soon after aircrafts Boing 737’s were added to the fleet.
The expansion of the airline was profitable; however, by 1971 differences between the Singapore and Malaysia governments arise over MSA’s corporate direction. Due to these differences, the Malaysian government announced the termination of the MSA alliance on April 1971. The company’s assets were divided. Singapore received all the Boeing aircraft, as well the airline headquarters building. Also, Singapore obtained the aircraft hangars and maintenance facilities as well as the computer reservation system and most of the overseas offices. On the other hand, Malaysia received the Britten-Norman aircraft, Friendship Fleet, the equipment in Malaysia and the overseas offices that were left. However, Singapore was responsible to pay the right remuneration for the imbalance or unevenness for the assets that were divided between the two governments.
After the split from MSA alliance, the new airline named Singapore Airlines (SIA) became Singapore’s flag carrier. Also, this airline inherited MSA’s international route network connecting over 20 airports across 18 destinations. These routes include Europe, the Middle East, Australia, Southeast and North Asia. In few months of its formation, Singapore Airlines became the first airline in Southeast Asia to order jumbo jets when it placed an order for two Boeing 747-200 aircraft and Boing 727. The 1st two 747s arrived in the summer of 1973 and were deployed on the lucrative Singapore-Hong Kong-Taipei-Tokyo (Haneda Airport) run. Also, the other 747-200s that arrived later were placed on routes to London, Paris and Rome, and the long cherished USA with service to Los Angeles, California. However,
In 1977 British Airways and Singapore Airlines shared a Concorde for flights between London and Singapore International Airport at Paya Lebar via Bahrain. The service was discontinued after three return flights because of noise complaints from the Malaysian government; it could only be reinstated on a new route bypassing Malaysian airspace in 1979. The 1980s saw expanded services to United States, Canada, and additional European cities with Madrid becoming the first Hispanic city to be served by SIA.
Strategies and Expansion

Singapore Airlines and the Singapore government were forced to focus on the expansion of the company’s international route network due to the lack of domestic air-travel market. During the years of 1973 and 1997, air services agreements were signed by the government with the governments of several countries that includes Australia, New Zealand, Indonesia, and Malaysia, India and the Philippines. Also, agreements were signed with the North- East Asia governments of Japan, Taiwan, and South Korea. These negotiations aided to build the way for future negotiations for air traffic rights. Also, other routes were added via code-sharing agreements and...

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