Case Study

Presentation
(Singapore Airlines)
Presented by:
Mr. Rian Jay P. Dimaano
March 11, 2022
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Assess Singapore 04
Airlines’ Most Recent
Quarterly 05

Performance Data 06
 Purpose
This exercise will enable you to analyze business
strategies and practice examining the progress a firm is
making in executing its strategic plan. Singapore Airlines
utilizes excellent strategic management as showcased at the
beginning of Chapter 1.
 Instructions
Step 1 Go to Singapore Airlines’ website. Find the About Us section, which is usually on
the bottom left hand corner of the home page, and then click on Investor Relations.

Step 2 Review Singapore Airlines’ most recent quarterly report or half-year report.

Step 3 Examine the change in performance variables and statistics for that most recent
quarter or half-year report.

Step 4 Based on your observations, what are strategic changes you think were made
during that time period? What additional changes in your view are still needed? Do the
statistics and numbers reveal any key problem areas? How well do you think the
company is faring using the strategic management processes they currently have in
place?
 01

Singapore 02

Airlines Recent 03

Half Year Report 04

Ended in 05

September 30, 06

2021
ide 4
Group Financial Results

1H 1H Better/ Better/ Q2 Q1 Better/ Better/

FY21/22 FY20/21 (Worse) (Worse FY21/22 FY21/22 (Worse (Worse
($’M) ($’M) ($’M) ) (%) ($’M) ($’M) ) ($’M) ) (%)
Total Revenue 2,826.9 1,634.4 1,192.5 73.0% 1,532.5 1,294.4 238.1 18.4%

3,446.3 3,497.3 51.0 1.5% 1,877.5 1,568.8 (308.7) (19.7)%

Total Expenditure
810.2 376.0 (434.2) (115.5)% 450.1 360.1 (90.0) (25.0)%
-- Net fuel cost
862.0 218.4 (643.6) n.m. 489.3 372.7 (116.6) (31.3)%
Fuel cost (before hedging)
(51.8) 157.6 209.4 n.m. (39.2) (12.6) 26.6 n.m.
Fuel hedging (gain)/loss
-- Fuel hedging ineffectiveness - 461.8 461.8 n.m. - - - -
-- Fair value (gain)/loss on fuel (78.8) 101.8 180.6 n.m. (7.0) (71.8) (64.8) (90.3)%
derivatives
-- Non-fuel expenditure 2,714.9 2,557.7 (157.2) (6.1)% 1,434.4 1,280.5 (153.9) (12.0)%

Operating Loss (619.4) (1,862.9) 1,243.5 66.8 (345.0) (274.4) (70.6) (25.7)%

Net Loss (836.8) (3,467.0) 2,630.2 75.9 (427.6) (409.2) (18.4) (4.5)%
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Group Financial Position

As at 30 September 2021 As at 31 March 2021

Total assets ($’M) 44,366.9 37,581.3

Total debt ($’M) 15,069.2 14,336.9

Total cash and bank balances ($’M) 12,529.6 7,783.0

Total liabilities ($’M) 22,031.8 21,303.2

Equity attributable to Owners of the Company ($’M) 21,956.9 15,905.9

Debt: Equity ratio (times)R1 0.69 0.90

Net Asset Value Per Share ($)R2 7.40 5.36

Adjusted Net Asset Value Per Share ($)R3 3.33 3.60

R1 Total debt : equity ratio is total debt divided by equity attributable to owners of the Company.
R2 Net asset value per share is computed by dividing equity attributable to owners of the Company by the number of ordinary shares in issue less
treasury shares.
R3 Adjusted net asset value per share is computed by dividing equity attributable to owners of the Company by the number of ordinary shares in issue

less treasury shares, assuming the conversion of all mandatory convertible bonds and convertible bonds.
Based on your observations, what are strategic
changes you think were made during that time
period?

1. They focused on Generating more Revenue.(Revenue Management)

2. They ensure their survival (sustainability) by increasing their liquidity.
3. They are addressing the global crisis that we are facing through their
services which resulted to higher volume of customer.
What additional changes in your view are still
needed?

Actually with the way the company is performing, I believe that

there are no changes to be made, but rather additional strategies to be
formulated and implemented would be good to sustain the level that they
are right now. One good strategy that might be ideal is to venture in
partnership (horizontal integration) to even increase the company’s edge
among the competition in the industry.
Do the statistics and numbers reveal any key
problem areas?
I firmly believe that even though the SIA is already coping up with its losses
in the prior year, it is still visible in the statistics and numbers that the company
maybe facing a serious problem now and in the future. This is because of the
current increase in the prices fuel which is their main component to be able to
operate. As seen on their Total expenditure, there is a 115% increase in terms of
fuel costing. With this, I think that they should formulate a strategy in order to
address this concern that they may still be able to stand with their image of
providing quality and cost efficient flights to their customers/clients.
How well do you think the company is faring using
the strategic management processes they currently
have in place?
As I observed, I can clearly see that SIA is faring really well with their
current strategy, as seen on their reports, they were able to increase their
total assets which indicates that they are ensuring their liquidity survival as
well. Also, there is a significant increase on their total Revenue which is an
indication that they are still providing such quality and convenience to their
target market, and this indicates that even though there are changes in their
offerings the demand in terms of their service is still high. One factor that
leads to this is their brand reputation, as they are considered as one of the
best in the airline industry.
How well do you think the company is faring using
the strategic management processes they currently
have in place?

Therefore, I might say that they should continue on what they have
build in terms of their strategies as it is clearly seen that there is progress in
terms of the performance of the company. Good strategic management will
always lead to better performance of the company.
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Thank You! 03

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