Name – Dhanashree Gharat

Roll. No – 104
Batch - MIM

Singapore Airlines (A): The India decision (ABRIDGED)

Case Study (SIA – A)

Question – If you were a senior manager at Singapore airlines would you enter the
Indian Airline Industry? Yes/No? Why?

Yes, being a senior manager at Singapore Airlines I would have look forward to
enter the Indian Aviation market considering the strategic partnership with
TATA Group. Below mentioned is my analysis as to why I would take this
partnership positively.

India being the second most populous country in the world, with 1.22 billion
people. The primary means of transport for long distance travel was the railways
which being affordable and almost carried 23 million passengers everyday. The
government took initiatives to increase the affordability of air travel, growing air
connectivity, strengthening of viable domestic airlines (mostly low cost carriers).
Wherein expecting a large number of middle class, increasing levels of
disposable income people to travel by airplanes, over the next 10 years.

The Indian Aviation market was the ninth largest in the world after US and China
in terms of passenger traffic & reported total revenue of $9.5 billion in fiscal year
2012/13. According to CAPA, the sector had potential for significant growth,
with passenger numbers projected to grow to 270 million by 2020,which would
make India the third largest aviation market globally after US and China.

Also taking into consideration the issue of TATA’s parallel ventures with Air Asia
to compete in the low-cost segment. SIA and Air Asia represents clearly different
market with different strategies globally. And for the SIA group India was the six
largest market, accounting for 6.3% of its seat capacity while controlling just
about 4% share of the international skies from India.