{"id":1551,"date":"2015-12-05T23:51:43","date_gmt":"2015-12-06T04:51:43","guid":{"rendered":"https:\/\/digital.hbs.edu\/platform-rctom\/submission\/singapore-airlines-achieving-the-best-of-both-worlds-of-low-cost-operations-model-and-service-excellence\/"},"modified":"2015-12-05T23:52:34","modified_gmt":"2015-12-06T04:52:34","slug":"singapore-airlines-achieving-the-best-of-both-worlds-of-low-cost-operations-model-and-service-excellence","status":"publish","type":"hck-submission","link":"https:\/\/d3.harvard.edu\/platform-rctom\/submission\/singapore-airlines-achieving-the-best-of-both-worlds-of-low-cost-operations-model-and-service-excellence\/","title":{"rendered":"Singapore Airlines: Achieving the best of both worlds of low-cost operations model and service excellence"},"content":{"rendered":"

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Overview:<\/strong><\/p>\n

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The Singapore Airlines (SIA), an airline whose name precedes its country of origin. In the past decade, while some may not know exactly where on the map the small island-nation of Singapore is, many have heard of the Singapore Airlines as the world-class airline renowned for its excellent service quality. Yet in the extremely cut-throat airline industry which had an estimated $31.7 billion cumulative losses between 2001 and 2010 (IATA, 2011) [1]<\/a>, SIA has never reported an annual operating loss since its founding in 1972, it has achieved consistent profitability and is the most awarded airline in the world [2]<\/a> .<\/p>\n

Business model<\/strong><\/p>\n

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Singapore Airlines, the flag carrier of Singapore, prides itself as the airline synonymous with service excellence, particularly dominating the business-travel sector. It offers 5 classes of seats including Economy, Economy premium, Business class, First Class and Suites [3]<\/a>. It attracts flyers through its luxurious amenities and services on board such as the Krisflyer entrainment system, carefully crafted in-flight menus and even its symbolic Singapore Girl (SIA stewardesses) which has become a brand in itself. The airline also enjoys great success in retaining customer through it Krisflyer loyalty program. Despite its premium prices, the Singapore Airline is the choice airline for many travelers, particularly those traveling for business and has in some ways, become a flight experience many travelers aspire to embark on, at least once.<\/p>\n

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Operating model and implications<\/strong><\/p>\n

Paradoxical as it may appear, it is interesting how SIA has boldly and successfully adopted and implemented dual strategy to support its customer service business with its low-cost operating model.<\/p>\n