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Strategic Response from Singapore Airlines to the Rapid Expansion of Global, Full-service Hub Carriers in the Middle East

In: Airline Economics in Asia

Author

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  • Terence Ping Ching Fan

Abstract

The rise of Emirates, Etihad, and Qatar Airways in the Middle East (collectively referred to as “ME3”) has been absolutely dramatic. How should other full-service carriers respond? This study takes a look at how one carrier, Singapore Airlines, has responded and may offer clues to how others may choose to respond. Facing ME3’s ascent in service quality and rapid capacity expansion, Singapore Airlines stuck to its niche as a premium carrier and refrained from tit-for-tat type competition. It managed to command a fare premium in select markets even in the presence of ME3, but had to sacrifice growth in its passenger count. This offers valuable lessons for other full-service carriers.

Suggested Citation

  • Terence Ping Ching Fan, 2018. "Strategic Response from Singapore Airlines to the Rapid Expansion of Global, Full-service Hub Carriers in the Middle East," Advances in Airline Economics, in: Airline Economics in Asia, volume 7, pages 33-60, Emerald Group Publishing Limited.
  • Handle: RePEc:eme:aiaezz:s2212-160920180000007004
    DOI: 10.1108/S2212-160920180000007004
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    More about this item

    Keywords

    Full-service incumbents; intercontinental hub; airline strategy; strategic response; hub carriers; rapid expansion; L93 Air Transportation; N75 Economic History – Transport; Trade; Energy; Technology; and Other Services: Asia including Middle East; R40 Transportation Economics General;
    All these keywords.

    JEL classification:

    • L93 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Air Transportation
    • N75 - Economic History - - Economic History: Transport, International and Domestic Trade, Energy, and Other Services - - - Asia including Middle East
    • R40 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - General

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