1. Singapore
Airlines:
Flying
to
New
Heights
Conquest
Consul<ng
Emily
Dong
│ Michelle
Li
│Nikunj
Mistry
│ Calvin
Tay

2. Value
Proposi<on
Objec<ves
Remain
Customer
Centric
Focus
on
Core
Business
Units
Value
Proposi=on
SIA
Customer
Experience
Implementa=on

3. Value
Proposi<on
Objec<ves
Customer
First
Enhancing
Customer
Experience
Ini8a8ves
Remain
Customer
Centric
Divest
SIAEC
Focus
on
Core
Introduce
Business
Class
Routes
to
Business
Units
Financial
Hubs
Enhance
Customer
Experience
pre-­‐Flight
Value
Proposi=on
SIA
Customer
Experience
Implementa=on

4. Value
Proposi<on
Objec<ves
Customer
First
Value
Added
Enhancing
Customer
Experience
Ini8a8ves
Remain
Customer
Centric
NPV
=
$
Divest
SIAEC
Focus
on
Core
Introduce
Business
Class
Routes
to
Business
Units
Financial
Hubs
Enhance
Customer
Experience
pre-­‐Flight
Value
Proposi=on
SIA
Customer
Experience
Implementa=on

5. Externali<es
Airline
Industry
Sensi=ve
to
Externali=es
Value
Proposi=on
SIA
Customer
Experience
Implementa=on

6. Government
Regula<on
Airline
Industry
Sensi=ve
to
Externali=es
Government
Regula=on
Value
Proposi=on
SIA
Customer
Experience
Implementa=on

7. Expansion
of
Budget
Market
Airline
Industry
Low
Legacy
Cost
Sensi=ve
to
Externali=es
Size
and
Network
Growth
and
Government
Regula=on
Access
to
Capital
Pricing
and
Expansion
of
Budget
Market
Structure
Cost
Structure
Value
Proposi=on
SIA
Customer
Experience
Implementa=on

8. Complex
Opera<ons
Airline
Industry
Sensi=ve
to
Externali=es
Government
Regula=on
Expansion
of
Budget
Market
Complexi=es
of
Opera=ons
Value
Proposi=on
SIA
Customer
Experience
Implementa=on

9. Posi<oning
Large
investment
in
Loyal
customers,
reasonable
Premium
Carriers
innova=on,
superior
product
margins,
economies
of
scale.
and
reputa=on.
Low
margins
with
high
No
loyal
following,
liSle
Standard
Carriers
pressure
from
low
cost,
low
network
effects
differen=a=on
High
volume,
simple
Low
Cost
Carriers
No
loyal
following,
no
business
model,
low
service
differen=a=on
level
Value
Proposi=on
SIA
Customer
Experience
Implementa=on

10. Posi<oning
Large
investment
in
Loyal
customers,
reasonable
Premium
Carriers
innova=on,
superior
product
margins,
economies
of
scale.
and
reputa=on.
KEY
TAKEAWAYS
Singapore
Airlines
must
posi1on
as
a
Low
margins
with
Carrier
to:
Premium
high
No
loyal
following,
liSle
Standard
Carriers
pressure
from
low
cost,
low
1. Avoid
price
wars
with
LCC
and
network
effects
differen=a=on
Standard
Carriers
2. ASain
reasonable
margins
for
sustained
survival
High
volume,
simple
Low
Cost
Carriers
No
loyal
following,
no
business
model,
low
service
differen=a=on
level
Value
Proposi=on
SIA
Customer
Experience
Implementa=on

11. Customer
Interface
Singapore
Airlines
Fulfillment
&
Support
Rela8onship
Dynamics
Rigorous
quality
control
system
Con=nuous
face-­‐to-­‐face
Selec=ve
staff
recruitment
and
interac=on
between
cabin
staff
selec=on
and
customers
Thorough
training
policy
Three-­‐=er
pricing
structure
Extensive
surveys
to
determine
ensures
each
customer
segment
customer
needs
and
preferences
is
clearly
delineated
Informa8on
&
Insight
Pricing
Structure
Value
Proposi=on
SIA
Customer
Experience
Implementa=on

12. Strategies
for
Con<nued
Success
Strategy
/
Key
Factors
for
Need
in
order
to
Recommenda8ons
Success
Succeed
An=cipate
customer
Reinforcing
the
Brand
needs
Focusing
on
the
Differen1ate
Service
Quick
reac=on
to
Travel
Experience
Classes
unfavorable
externali=es
Increase
Customer
Convenience
Innova=on
Experience
Value
Proposi=on
SIA
Customer
Experience
Implementa=on

13. Strategies
for
Con<nued
Success
Strategy
/
Key
Factors
for
Need
in
order
to
Recommenda8ons
Success
Succeed
An=cipate
customer
Reinforcing
the
Brand
needs
Focusing
on
the
Differen1ate
Service
Quick
reac=on
to
Travel
Experience
Classes
unfavorable
externali=es
Increase
Customer
Convenience
Innova=on
Experience
Increase
flow
into
Tradewinds
Target
growing
ci=es
Singapore
Value
Proposi=on
SIA
Customer
Experience
Implementa=on

14. Strategies
for
Con<nued
Success
Strategy
/
Key
Factors
for
Need
in
order
to
Recommenda8ons
Success
Succeed
An=cipate
customer
Reinforcing
the
Brand
needs
Focusing
on
the
Differen1ate
Service
Quick
reac=on
to
Travel
Experience
Classes
unfavorable
externali=es
Increase
Customer
Convenience
Innova=on
Experience
Increase
flow
into
Tradewinds
Target
growing
ci=es
Singapore
Discon=nue
SIAEC
Value
Proposi=on
SIA
Customer
Experience
Implementa=on

15. Strategies
are
Reinforcing
Strategy
/
Key
Factors
for
Need
in
order
to
Recommenda8ons
Success
Succeed
Focus
on
Core
Business
An=cipate
customer
Reinforcing
the
Brand
needs
Focusing
on
the
Differen1ate
Service
Quick
reac=on
to
Reinvest
in
Travel
Experience
Classes
unfavorable
externali=es
Grow
&
Reinforce
Premium
Services
Brand
Increase
Customer
Convenience
Innova=on
Experience
Expand
Increase
flow
into
Expand
Tradewinds
Target
growing
ci=es
Tradewinds
Singapore
Divest
SIAEC
Value
Proposi=on
SIA
Customer
Experience
Implementa=on

16. Growth
Through
Equity
Stakes
Historical
growth
strategy
through
pursuing
equity
stakes
in
younger
airlines
25%
Stake
49%
Stake
49%
Stake
Decreased
to
34.4%
Decreased
to
6.47%
Stake
Sold
due
to
following
Underperformance
Stock
Exchange
Stake
Sold
at
Loss
Lis=ng
Value
Proposi=on
SIA
Customer
Experience
Implementa=on

17. Growth
Through
Equity
Stakes
Historical
growth
strategy
through
pursuing
equity
stakes
in
younger
airlines
South
Korea,
Malaysia,
and
Indonesia,
KEY
TAKEAWAYS
registering
the
highest
1. Too
Mout
of
the
top
growth
uch
Compe11on
15
markets
2. Have
not
been
successful
in
the
past
25%
Stake
49%
Stake
49%
Stake
The
top
5
markets:
Indonesia
China
ot
look
into
new
equity
SIA
should
n
Malaysia
stakes
with
low-­‐cost
carriers
India
Decreased
to
34.4%
Decreased
to
6.47%
Australia
Sold
due
to
Stake
following
Underperformance
Stock
Exchange
Stake
Sold
at
Loss
Lis=ng
Value
Proposi=on
SIA
Customer
Experience
Implementa=on

18. Cri<cal
Role
of
the
Singapore
Girl
A
Unified
Brand
Singapore
Girl
• Asian
values
and
hospitality
• Warm,
caring,
gentle,
elegant
and
serene
Brand
Image
• High
quality
• Innova=ve
• Safety
and
service
excellence
• Consistency
Value
Proposi=on
SIA
Customer
Experience
Implementa=on

19. Cri<cal
Role
of
the
Singapore
Girl
KEY
TAKEAWAYS
A
Unified
Brand
SIA’s
brand
image
is
reliant
on
2
pillars
Singapore
Girl
1. Singapore
Girl
• Asian
values
and
hospitality
2. An
ongoing
dedica=on
to
quality
and
service
excellence
arm,
caring,
gentle,
elegant
and
• W
serene
Brand
Image
Singapore
Girl
image
is
• High
quality
essen8al
to
the
con8nued
• Innova=ve
success
of
SIA
and
service
excellence
• Safety
• Consistency
Value
Proposi=on
SIA
Customer
Experience
Implementa=on

20. Focusing
on
the
Customer
Experience
Value
Proposi=on
SIA
Customer
Experience
Implementa=on

21. Who
Is
The
Customer
Airline Customer Value Segmentation (By Revenue)
ISSUE
Segmenta=on
By
Frequent
Flier
Program
Data
Is
Insufficient
The
Majority
of
Spending
Is
Done
Through
A
Small
Percentage
of
Customers
Find
Out
Who
These
Customers
Are
And
Tailor
To
Them
Value
Proposi=on
SIA
Customer
Experience
Implementa=on

22. What
Do
The
Customers
Want
Airline Customer Value Segmentation (By Revenue)
Value
Proposi=on
SIA
Customer
Experience
Implementa=on

23. What
Do
the
Customers
Want
Airline Customer Value Segmentation (By Revenue)
Key
Takeaway
“High
Road
Warriors”
&
“Global
Stars”
Make
Up
27%
Of
Average
Airline
Revenues
They
Value
Flexibility
&
Recogni=on
Convenience
&
Segmenta8on
Value
Proposi=on
SIA
Customer
Experience
Implementa=on

24. GeOng
Into
the
Customer’s
Head
Buy
A
Ticket
Board
Ride
Transport
To
Wait
To
Baggage
Airport
Board
Claim
Transport
Check-­‐In
Security
From
Airport
Value
Proposi=on
SIA
Customer
Experience
Implementa=on

25. Mobile
Check-­‐In
For
All
Benefits
No
Need
To
Print
No
Paper
To
Carry
Never
Worry
About
Losing
A
Boarding
Pass
Again
Buy
A
Ticket
Board
Ride
Transport
To
Wait
To
Baggage
No
Excess
Paper
When
You’re
Done
Airport
Board
Claim
Transport
Check-­‐In
Security
From
Airport
Value
Proposi=on
SIA
Customer
Experience
Implementa=on

26. Smart-­‐Card
Check-­‐In
For
The
Elite
How
It
Works
Scan
Smart-­‐Card
At
Kiosk
Scan
Finger
For
Iden=fica=on
Use
As
Boarding
Pass
At
The
Gate
Buy
A
Ticket
Board
Ride
Transport
To
Wait
To
Baggage
Airport
Board
Claim
Transport
Check-­‐In
Security
From
Airport
Value
Proposi=on
SIA
Customer
Experience
Implementa=on

27. Connec<ng
With
Our
Customers
How
It
Works
Receive
Login
For
Internet
At
SIA
Check-­‐
In
Counter
Use
Wireless
As
You
Are
Wai=ng
To
Board
SIA
Customer
Will
Feel
Special
Compared
To
Customers
of
Other
Airlines
Buy
A
Ticket
Board
Ride
Wireless
Login
Will
Terminate
At
Transport
To
Wait
To
Baggage
Airport
Board
Claim
Boarding
Time
To
Ensure
Timely
Boarding
Transport
Check-­‐In
Security
From
Airport
Value
Proposi=on
SIA
Customer
Experience
Implementa=on

28. Expansion
of
Business
Class
Flights
• Increasing
level
of
interna=onal
travel
for
business
purposes
• Corporate
firms
are
willing
to
pay
premium
for
last
minute
flights
• Not
price
sensi=ve
• Targe=ng
financial
centers
of
the
world
Value
Proposi=on
SIA
Customer
Experience
Implementa=on

29. Financial
Centers
of
the
World
London
New
York
Hong
Kong
Shenzhen
Sydney
Reliability
of
Transporta=on
Ease
of
Access
Quality
of
Public
Services
Professionalism
of
Des=na=on
Language
Accessibility
Unfavorable=
Favorable=
Value
Proposi=on
SIA
Customer
Experience
Implementa=on

30. Which
Ci<es
to
Target
London
New
York
Hong
Kong
Shenzhen
Sydney
Reliability
of
Transporta=on
Ease
of
Access
Quality
of
Public
Services
Professionalism
of
Des=na=on
Language
Accessibility
Unfavorable=
Favorable=
Value
Proposi=on
SIA
Customer
Experience
Implementa=on

31. Which
Ci<es
to
Target
London
New
York
Hong
Kong
Shenzhen
Sydney
Reliability
of
KEY
TAKEAWAYS
Transporta=on
1. Increased
level
of
interna=onal
Ease
of
Access
business
2. Increased
travel
to
financial
centers
Quality
of
Public
of
the
world
Services
Professionalism
of
Des=na=on
Language
Priori8ze
Business
Class-­‐only
flights
to
Accessibility
those
ci8es
Unfavorable=
Favorable=
Value
Proposi=on
SIA
Customer
Experience
Implementa=on

32. SIA
Current
Business
Units
Value
Proposi=on
SIA
Customer
Experience
Implementa=on

33. SIA
Engineering
MRO
Market
Fuel
costs
have
increased
sharply
Current
air
transport
MRO
market
decreased
$2.3BN
Shorter
economic
aircra[
life
spans
Economies
of
scope
and
scale
business
Value
Proposi=on
SIA
Customer
Experience
Implementa=on

34. SIA
Engineering
MRO
Market
Fuel
costs
have
increased
sharply
Current
air
transport
MRO
market
decreased
$2.3BN
Shorter
economic
aircra[
life
spans
Economies
of
scope
and
scale
business
MRO
market
showing
limited
signs
for
growth
Value
Proposi=on
SIA
Customer
Experience
Implementa=on

35. Tradewinds
Growth
Top
Markets
Visitor
Days
Singapore’s
visitor
South
Korea,
Malaysia,
Visitor
Days,
es=mated
arrivals
grew
17.6%
year
and
Indonesia,
at
3.6
million
days
for
over
year
to
908,000
registering
the
highest
January
2010,
grew
arrivals,
the
highest
ever
growth
out
of
the
top
8.7%
over
2009
and
are
recorded
in
the
month
15
markets
expected
to
con=nue
of
January
growing.
The
top
5
markets:
Indonesia
China
Malaysia
India
Australia
Value
Proposi=on
SIA
Customer
Experience
Implementa=on

36. Tradewinds
Growth
Top
Markets
Visitor
Days
Singapore’s
visitor
KEY
TAKEAWAYS
South
Korea,
Malaysia,
Visitor
Days,
es=mated
arrivals
grew
17.6%
year
and
Indonesia,
over
year
to
908,000
1.
Direct
1e-­‐in
SIA’s
main
business
at
3.6
million
days
for
registering
the
highest
January
2010,
grew
arrivals,
the
highest
ever
growth
out
of
the
top
recorded
in
the
month
2.
Gives
tourists
another
opportunity
to
8.7%
over
2009
and
are
15
markets
expected
to
con=nue
of
January
come
in
contact
with
Singapore
growing.
Airlines
The
top
5
markets:
Indonesia
China
Malaysia
Con8nue
to
Operate
Tradewinds
as
India
Australia
of
SIA
Group
part
Value
Proposi=on
SIA
Customer
Experience
Implementa=on

37. Implementa<on
Timeline
2010
2011
2012
2013
Add
Expanding
Add
2
Addi=onal
2
Redesign
Planes
Service
Classes
Loca=ons
Loca=ons
Smart-­‐Card
Begin
Installing
Make
Smart-­‐Card
IDs
Available
Elite
Check-­‐In
Fingerprint
Scanners
To
Elite
Customers
Clear
With
Mobile
Airport
ASach
Barcodes
To
E-­‐Tickets
&
Boarding
Pass
Update
Mobile
Phone
Applica=ons
Security
SIA
Contract
Engineering
Ends
Value
Proposi=on
SIA
Customer
Experience
Implementa=on

38. Valua<on
Sensi8zed
Net
Present
Value
Free
Cash
Flows
$4,000.00
$4.2
bn
$2,000.00
$0.00
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
Terminal
Growth
$2.5
bn
$2,492.98
3.25%
3.75%
4.00%
4.25%
4.50%
10.51%
$2,973
$3,772
$4,218
$4,699
$5,220
WACC
10.76%
$2,194
$2,917
$3,319
$3,752
$4,219
11.01%
$1,468
$2,125
$2,488
$2,879
$3,299
11.26%
$791
$1,389
$1,718
$2,071
$2,450
11.51%
$158
$703
$1,002
$1,322
$1,665
$1.0
bn
Value
Proposi=on
SIA
Customer
Experience
Implementa=on

39. Financial
Implica<ons
Revenue
and
Net
Income
Growth
$30,000
$25,000
$20,000
$15,000
Net
Income
$10,000
Revenue
$5,000
Base
Case:
2011-­‐2021
$0
•
Average
Revenue
Growth:
6.3%
•
Average
Opera8ng
Margin:
5.08%
Net
Margin
Growth
•
Average
Net
Profit
Margin:
4.06%
7.00%
6.00%
5.00%
4.00%
3.00%
2.00%
1.00%
0.00%
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
Value
Proposi=on
SIA
Customer
Experience
Implementa=on

40. Singapore
Airlines:
Flying
to
New
Heights
Conquest
Consul<ng
Emily
Dong
│ Michelle
Li
│Nikunj
Mistry
│ Calvin
Tay

41. Risks
Risks
Mi8ga8on
Con8ngency
Customer
Perks
Offer
More
Discon=nue
Do
Not
Translate
Services,
but
for
Perks
and
Into
Revenue
a
Price
Increase
In-­‐Cabin
Offerings
Low
Cost
Airlines
Overtake
A
Move
Into
Low-­‐
Invest
In
Low-­‐
Majority
of
The
Cost
Market
With
Cost
Airline
Market
Another
Brand
Compe=tors
Engage
in
Media
Increase
Rewards
Increase
Focus
Blitz
to
and
Benefits
on
Seamless
Emphasize
Frequent
Flyers
Customer
Dedica=on
to
Earn
Experience
Quality
Value
Proposi=on
SIA
Customer
Experience
Implementa=on

42. SWOT
-­‐
Industry
Strengths
Opportuni8es
Increased
propensity
to
fly
Technological
advances
Public
percep=on
of
safe
air
Customer-­‐friendly
service
travel
enhancements
Highly
trained
airline
staff
Ability
to
segment
the
market
Global
economic
downturn
High
spoilage
rate
of
empty
seats
Price
of
fuel
High
capital
outlays
Natural
disasters
Large
workforce
over
large
geography
Weaknesses
Threats
Value
Proposi=on
SIA
Customer
Experience
Implementa=on

43. Reliability
of
Transporta<on
London
New
York
Hong
Kong
Shenzhen
Sydney
Reliability
of
Transporta=on
• Convenience
of
travel
within
the
city
• Taxis
Ease
of
Access
• Trams
• Subway
system
Quality
of
Public
• Cars
Services
• Bus
Professionalism
of
Des=na=on
Language
Accessibility
Value
Proposi=on
SIA
Customer
Experience
Implementa=on

44. Ease
of
Access
London
New
York
Hong
Kong
Shenzhen
Sydney
Reliability
of
• Accessibility
of
services
to
a
business
traveler
Transporta=on
• Banking
services
Ease
of
Access
• Travel
arrangements
• Network
connec=vity
Quality
of
Public
Services
Professionalism
of
Des=na=on
Language
Accessibility
Value
Proposi=on
SIA
Customer
Experience
Implementa=on

45. Quality
of
Public
Services
London
New
York
Hong
Kong
Shenzhen
Sydney
Reliability
of
• For
business
travelers
with
extended
stays
Transporta=on
• Health
care
Ease
of
Access
• Telecommunica=ons
• Public
Transporta=on
Quality
of
Public
• Home
planning
Services
• Electricity
Professionalism
of
Des=na=on
Language
Accessibility
Value
Proposi=on
SIA
Customer
Experience
Implementa=on

46. Professionalism
of
Des<na<on
London
New
York
Hong
Kong
Shenzhen
Sydney
Reliability
of
• Degree
of
business
professionalism
Transporta=on
• Friendliness
to
business
professionals
Ease
of
Access
• Acceptance
of
foreign
businessmen
and
women
Quality
of
Public
Services
Professionalism
of
Des=na=on
Language
Accessibility
Value
Proposi=on
SIA
Customer
Experience
Implementa=on

47. Language
Accessibility
London
New
York
Hong
Kong
Shenzhen
Sydney
Reliability
of
• English
is
the
primary
language
of
business
around
the
Transporta=on
world
Ease
of
Access
• Use
of
English
in
the
local
areas
• Street
signs
Quality
of
Public
• Communica=on
with
locals
Services
Professionalism
of
Des=na=on
Language
Accessibility
Value
Proposi=on
SIA
Customer
Experience
Implementa=on

48. Why
Not
To
Go
Low
Cost
Premium
Airlines
High
Levels
Of
Intense
Compe==on
Middle-­‐Market
Airlines
Brand
Dilu=on/Confusion
Discount
Airlines
Low
Cost
Carriers
Cut
Costs
Without
Regard
To
Safety
Uses
Secondary
Airports
–
A
Problem
For
Interna=onal
Flights
Ongoing
Price
Wars
Are
The
Nature
of
the
Industry
Negates
SIA’s
Core
Competencies
Value
Proposi=on
SIA
Customer
Experience
Implementa=on

49. MRO
Value
Chain
Raw
Materials
Opera=ons
Marke=ng/
• Plane
• Training
Service
• Fuel
• Maintenance
Sales
Fly
Send
Pick
Up
For
Repair
Repair
Value
Proposi=on
SIA
Customer
Experience
Implementa=on

50. Key
Assump<ons
Assump8ons
Discount
Rate
Terminal
Growth
11.01%
4%
Value
Proposi=on
SIA
Customer
Experience
Implementa=on