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

• Main Author: FAN, Terence P. C.
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2019
• Subjects: Full-service incumbents; Intercontinental hub; Airline strategy; Strategic response; Hub carriers; Rapid expansion; Asian Studies; Strategic Management Policy; Transportation
• Online Access: https://ink.library.smu.edu.sg/lkcsb_research/5999; https://doi.org/10.1108/S2212-160920180000007004
• Institution: Singapore Management University

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.