Strategic response from Singapore Airlines to the rapid expansion of global, full-service hub carriers in the Middle East

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 othe...

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Bibliographic Details
Main Author: FAN, Terence P. C.
Format: text
Language:English
Published: Institutional Knowledge at Singapore Management University 2019
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Online Access:https://ink.library.smu.edu.sg/lkcsb_research/5999
https://doi.org/10.1108/S2212-160920180000007004
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Institution: Singapore Management University
Language: English
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Summary: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.