Thinking through the meteoric rise of Middle-East carriers from Singapore Airlines' vantage point

• Main Authors: FAN, Terence P. C., LINGBLAD, Mats
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2016
• Subjects: Middle East; Full-service incumbents; Intercontinental hubs; Singapore Airlines; Emirates; Etihad; Qatar Airways; Asian Studies; Strategic Management Policy; Transportation
• Online Access: https://ink.library.smu.edu.sg/lkcsb_research/5128; https://ink.library.smu.edu.sg/context/lkcsb_research/article/6127/viewcontent/Thinking_through_the_meteoric__1_.pdf
• Institution: Singapore Management University

The rise of Middle East carriers in the past decade has been nothing less than meteoric. Based on the notion of generic strategy, we analysed the potential for competitors of the leading Middle East carriers to respond in terms of market scope and product characteristics, using Singapore Airlines as a reference. We found that it was generally difficult for Singapore Airlines to compete in terms of market scope, and thus it should concentrate on offering different degrees of differentiation in its products. While the latest small, long-haul aircraft could help increase Singapore Airlines' market scope, this impact would be marginal at best. We compared the product offerings and prices for the Business and Economy cabins, and noted the intensive competitive pressures the leading Middle East carriers exerted on Singapore Airlines. Improving specific product qualities such as guaranteeing a horizontally flat bed in Business and the overall quality in Economy helps competitors command higher prices, while other niches are still possible.