SIA must soar above dis­rup­tion

The Jakarta Post - - OPINION -

Many will be watch­ing the out­comes of Sin­ga­pore Air­lines’ three-year turn­around plan to ad­dress the fierce com­pe­ti­tion that has eroded prof­its. As an icon of the coun­try’s global reach, SIA is more than an air­line. It is a show­piece of how Sin­ga­pore at large is meet­ing the head­winds cre­ated by dis­rup­tions within a rapidly chang­ing global econ­omy.

Thus, it is es­sen­tial for SIA to demon­strate that it is ca­pa­ble of stay­ing on top of its game. To re­view work pro­cesses and op­er­a­tions com­pany-wide, SIA has put more than 100 staff to work on 56 projects. These in­clude stud­ies on how to re­duce fuel burn fur­ther and cut in-flight food waste.

But more than spe­cific mea­sures whose cu­mu­la­tive ef­fect should make a dif­fer­ence, the trans­for­ma­tion en­com­passes ini­tia­tives to in­crease rev­enue and en­hance or­ga­ni­za­tional and op­er­a­tional ef­fec­tive­ness.

Some be­lieve the air­line industry will be rocked by the rise of dis­rup­tors us­ing big data to “over­whelm the air­lines’ con­trol of dis­tri­bu­tion”, and will also be “swamped” by chang­ing cross­bor­der air­line own­er­ship struc­tures and cross-bor­der joint ven­tures. SIA’s re­sponse to such chal­lenges must once again be global in na­ture.

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