Strategic Response from Singapore Airlines to the Rapid Expansion of Global, Full-service Hub Carriers in the Middle East
Terence Ping Ching Fan
A chapter in Airline Economics in Asia, 2018, vol. 7, pp 33-60 from Emerald Publishing Ltd
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.
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 (search for similar items in EconPapers)
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