SIA must soar above disruption
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.