Singapore Airlines Limited

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Singapore Airlines (SIA)
IATA SQ	ICAO SIA	Callsign SINGAPORE
Founded		1947 (as Malayan Airways)
Hubs		Singapore Changi Airport
Secondary hubs		Dubai International Airport Suvarnabhumi Airport
Frequent flyer program		KrisFlyer PPS Club
Member lounge		Silver Kris Lounge
Alliance		Star Alliance
Subsidiaries		SATS SIA Engineering Company SilkAir Singapore Airlines Cargo Singapore Flying College
Fleet size		94 (+86 orders, 59 options)
Destinations		64
Company slogan		A Great Way To Fly
Headquarters		Singapore
Key people		Chew Choon Seng (CEO)
Website: http://www.singaporeair.com

Singapore Airlines Limited (Abbreviation: SIA; Chinese: 新加坡航空公司; pinyin: Xīnjiāpō Hángkōng Gōngsī, abbreviated 新航; Malay: Syarikat Penerbangan Singapura; Tamil: சிங்கப்பூர் ஏர்லைன்ஸ்) (SGX: S55) is the national airline of Singapore. Singapore Airlines operates a hub at Singapore Changi Airport and has a presence in the airline markets of Southeast Asia, East Asia, South Asia, and the competitive "kangaroo route" between Europe and Oceania. The company also operates trans-Pacific flights, including two of the world's longest non-stop commercial flights from Singapore to Newark, New Jersey and Los Angeles, California.^[1][2]

SIA has diversified into ground handling, aviation engineering, air catering, and travel tour marketing. Its wholly owned subsidiary, SilkAir, manages regional flights to secondary cities with smaller capacity requirements, particularly those in Southeast Asia, China and India. Strong growth potential in air freight operations prompted the setting up of a separate subsidiary, Singapore Airlines Cargo, which leased the entire freighter fleet from SIA and manages the cargo holds in all existing SIA aircraft. The airline also responded to the threats posed by the low-cost sector by taking a 49% stake in Tiger Airways. Collectively, the Singapore Airlines Group (including SilkAir and Singapore Airlines Cargo) is the world's largest carrier by market capitalization, having overtaken Southwest Airlines in 2006/7,^[3] and ranks amongst the top 15 carriers worldwide in terms of revenue passenger kilometres^[4]. In addition, it is the 9th largest airline in Asia and ranked 6th in the world in terms of international passengers carried.^[5]

Singapore Airlines was ranked 17th in Fortune's World’s Most Admired Companies rankings in 2007^[6]) and has built up a strong brand name^[7] as a trendsetter^[8] in the aviation industry, particularly in terms of service excellence, innovation, and safety,^[9] coupled with consistent profitability. ^[10] It has won numerous awards and accolades, and is an industry bellwether for aircraft purchases.^[11] The airline was Asia's first and the world's third airline to be accredited by IATA with the IOSA (IATA Operations Safety Audit).^[12]

Singapore Airlines Boeing 747-400 9V-SPA takes off from London Heathrow Airport bound for Singapore Changi Airport. The airline uses its main base at Singapore to compete on the lucrative "kangaroo route".

History

Early history

An Airspeed Consul (VR-SCD) - the first aircraft type operated by Malayan Airways, which was the forerunner of Singapore Airlines

Singapore Airlines began with the incorporation of Malayan Airways Limited (MAL) on 12 October 1947, by the Ocean Steamship Company of Liverpool, the Straits Steamship Company of Singapore and Imperial Airways. The airline's first flight was a chartered flight from the British Straits Settlement of Singapore to Kuala Lumpur on 2 April 1947 using an Airspeed Consul twin-engined airplane^[13]. Regular weekly scheduled flights quickly followed from Singapore to Kuala Lumpur, Ipoh and Penang from 1 May 1947 with the same aircraft type^[14]. The airline continued to expand during the rest of the 1940s and 1950s, as other British Commonwealth airlines (such as BOAC and Qantas Empire Airways) provided technical assistance, as well as assistance in joining IATA.^{[citation needed]} By 1955, Malayan Airways' fleet had grown to include a large number of Douglas DC-3s, and went public in 1957. Other aircraft operated in the first two decades included the Douglas DC-4 Skymaster, the Vickers Viscount, the Lockheed L-1049 Super Constellation, the Bristol Britannia, the de Havilland Comet 4 and the Fokker F27.

When Malaya, Singapore, Sabah and Sarawak formed the Federation of Malaysia in 1963, the airline's name was changed, from "Malayan Airways" to "Malaysian Airlines" (though still abbreviated to MAS). MAS also took over Borneo Airways. In 1966, following Singapore's separation from the federation, the airline's name was changed again, to Malaysia-Singapore Airlines (MSA). The next year saw a rapid expansion in the airline's fleet and route, including the purchase of MSA's first Boeing aircraft, the Boeing 707s, as well the completion of a new high-rise headquarters in Singapore. Boeing 737s were added to the fleet soon after.

MSA ceased operations in 1972, when political disagreements between Singapore and Malaysia resulted in the formation of two entities: Singapore Airlines and Malaysian Airlines System.^[15][16][17] Singapore Airlines kept all 10 of MSA's Boeing 707s and 737s, retained the international routes out of Singapore as well as the existing corporate headquarters in the city. Female flight attendants continued to wear the sarong kebaya uniform, which was first introduced in 1968. A local start up advertising company, Batey Ads was given the right to market the airline, eventually selecting the sarong and kebaya-clad air stewardesses as an icon for the airline and calling them Singapore Girls.

Modern history

A Boeing 707-338C freighter at Zurich Airport in 1979. The aircraft was delivered on 20 November 1972, and was SIA's ninth Boeing 707 aircraft.

A Singapore Airlines Boeing 747-400, dubbed Megatop, at Auckland International Airport. The Megatop is the flagship of the airline since 1989 until the introduction of the Airbus A380 in October 2007

Singapore Airlines saw rapid growth during the 1970s, adding cities in the Indian subcontinent and Asia to its 22-city network, and adding Boeing 747s to its fleet. The 1980s saw the addition of the United States, Canada, and European cities to the airline's route map, with Madrid becoming the first Hispanic city to be served by Singapore Airlines.

Boeing 747-400s were introduced into the Singapore Airlines fleet in 1989 and named Megatops. They were later complemented by Boeing 777s, Airbus A310s and Airbus A340s. Services were extended to southern Africa in the 1990s, when the airline began flights to Johannesburg in South Africa. The cities of Cape Town and Durban were subsequently introduced to the route network.

In 2004, Singapore Airlines began non-stop trans-Pacific flights from Singapore to Los Angeles and Newark, utilising the Airbus A340-500 (dubbed Leadership by the airline). These flights marked the first non-stop air services between Singapore and the USA. The Singapore to Newark flight set a record, which it still holds, as the longest scheduled commercial flight, with a flying time of approximately 18 hours between Singapore and Newark and 20 hours on the return journey.

On September 29 2000, Singapore Airlines announced an order for 25 Airbus A3XX (as the A380 was known at the time). The US$8.6 billion order comprised a firm order of 10 aircraft, with options on another 15 airframes.^[18] The order was confirmed by Singapore Airlines on July 12 2001. In April 2004, SIA announced that they will launch A380 service on flights between Sydney and Singapore and onwards to London, creating the first A380 service on the kangaroo route.^[19]

In January 2005, the airline unveiled the slogan "First to fly the A380 - experience the difference in 2006", to promote itself as the world's first airline to take delivery of the A380-800 double-decker super jumbo, which was expected to take place in the second quarter of 2006.^[20] In June 2005, Airbus confirmed that due to unforeseen technical problems, initial deliveries of the Airbus A380 would be delayed by up to six months,^[21] with the first delivery now slated for November 2006, well after the peak northern hemisphere summer travel season. The announcement was met with fury by SIA's CEO, Chew Choon Seng, who threatened to sue Airbus, saying:

He further stated that SIA will be turning its attention to Boeing instead, since it would be receiving the Boeing 777-300ER before the A380. Nevertheless, SIA has indicated that this would not affect its promotional campaign.

In February 2006, the first A380 in full Singapore Airlines livery was flown to Singapore, where it was displayed at Asian Aerospace 2006. On June 14, 2006, Singapore Airlines placed an initial order for the Boeing 787 as part of its future aircraft expansion. The order consisted of 20 787-9s and rights for 20 more. This order came one day after Airbus announced that the A380 superjumbo would be delayed by another 6 months.

Upon completion of a review of the A380 program on 3 October 2006, the new CEO of Airbus, Christian Streiff, announced a third delay for delivery of the first A380 to Singapore Airlines.^[23] The largest delay yet, it pushed the first delivery of a single A380 aircraft to Singapore Airlines in October 2007.

At a Cabinet meeting on February 22, 2006, the Australian government decided not to grant fifth freedom rights to Singapore Airlines on flights from Australia to the United States.^{[citation needed]} Singapore Airlines had argued that transpacific flights from Australia suffered from under-capacity, leading to limited competition and relatively high air fares.^{[citation needed]}

On August 16 2007, the airline announced that the first Airbus A380 aircraft will be received on 15 October 2007 and be entered into service on 25 October 2007 with a flight between Singapore and Sydney (flight number Singapore Airlines Flight 380/381)^[24]. The airline plans to use this first aircraft, in a 471-seat configuration, on its London–Singapore–Sydney service.

Incidents and accidents

See also: List of accidents and incidents on commercial airliners - Singapore Airlines

There has been one accident involving passenger fatalities on Singapore Airlines.^{[citation needed]}

• On 31 October 2000, Singapore Airlines Flight 006, a Boeing 747-400 flying from Singapore to Los Angeles via Taipei hit runway equipment whilst attempting to take off on a closed runway at Chiang Kai Shek International Airport, killing 83 out of 179 people on board.

Other incidents

• On 26 March 1991, Singapore Airlines Flight 117, on a flight from Kuala Lumpur to Singapore, was hijacked in mid-flight. The aircraft was stormed by the Singapore Armed Forces and all the hijackers were killed while none of the passengers or crew were hurt.^{[citation needed]}
• On 11 October 2007 a stowaway, Osama R.M. Shublaq, fell out of the undercarriage of Singapore Airlines Flight 119 from Kuala Lumpur. Airport police arrested him and he was deported back to Malaysia a week later.^{[citation needed]}

Corporate management

Singapore Airlines is the parent airline company of the Singapore Airlines Group of companies^[25]. The Singapore government investment and holding company, Temasek Holdings^[26] is the majority shareholder with 55% shareholding^[27]. The Singapore government has regularly stressed its non-involvement in the management of the company, a point emphasised by Minister Mentor Lee Kuan Yew when he declared that the aviation hub status of Singapore Changi Airport will be defended, even at the cost of SIA.^[28] However, he was personally involved in defusing tensions between the company and its pilots,^[29] warned the airline to cut costs,^[30] and made public his advice to the airline to divest from its subsidiary companies.^[31] Still, independent research typically rates the airline as practicing sound corporate governance policies in accordance with national regulations.^[32] In the lead up to the conclusion of the Open Skies Agreement with the United Kingdom on 2 October 2007, the Singapore aviation authorities referred to the airline's audited annual reports to dispel the notion that SIA receives state funding, subsidies or preferential treatment from the government, despite being a Government-linked company.^[33]

Structure

Main article: Singapore Airlines subsidiaries

Singapore Airlines has diversified over the years in related industries and sectors, including ground handling, aircraft leasing, aviation engineering, air catering, and tour operations. It has also restructured itself by hiving off operational units as fully-owned subsidiaries to maintain its core business as a premium passenger airline.

The Singapore Airlines Group comprised of 25 subsidiary companies, 32 associated companies, and two joint venture companies in the financial year ending 31 March 2007. It divested itself completely from two associated companies, namely Asia Leasing Limited and Mid-East Airport Services, where it previously held 21% and 41.6% respectively. It also sold all its equity share of 35.5% in a joint venture, Singapore Aircraft Leasing Enterprise, to the Bank of China for US$980m on 15 December 2006^[34]

Some major companies in Singapore Airlines Group include:

Suggestions to divest its two biggest subsidiaries, SIA Engineering Company and Singapore Airport Terminal Services, have stretched back several years^[35], in particular when Minister Mentor Lee Kuan Yew voiced his opinion that the airline should divest the two listed companies to focus on its core business in December 2005^[36]. The company has yet to react in kind, however, although it did evaluate this possibility^[37].

Operational investments

The airline has attempted to invest in other airlines in a bid to expand beyond its Singapore base, although the results are often financially negative. In 1989, it went into a tripartite alliance with Delta Air Lines and Swissair^[38], but terminated their partnership in 1999 after divesting their 5% equity stake in each other's company. The airline purchased 25% of Air New Zealand in 2000. However following the near collapse of Air New Zealand the New Zealand government bought into the airline to rescue it from bankruptcy, reducing Singapore Airlines' stake to 4.5%. This was subsequently sold in October 2004 at a substantial loss.

SIA bought a 49% stake in Virgin Atlantic Airways on 30 March 2000 worth 600 million pounds in cash^[39] in the hope of leveraging on it on the lucrative transatlantic market, but by 2007, there has been reports of underperformance and the possibility of divesting its stake.^[40] In September 2004, the airline established low-cost carrier Tiger Airways with a 49% stake, in partnership with Indigo Partners LLC, the investment firm founded by Bill Franke, (24%); Irelandia Investments Limited, the private investment arm of Tony Ryan and his family, (16%); and Temasek Holdings Pte Ltd (11%).

On April 20, 2006, the media broke the news on the airline's possible investment of up to 20% in China Eastern Airlines. SIA confirmed that negotiations were underway.^[41] News of a possible stake in Aeroméxico also surfaced on 6 February 2007.^[42] On 10 May 2007, the China Securities Journal reported that the airline is in final talks to take a stake in China Eastern^[43] of up to 20%,^[44] resulting in a surge in the latter's stock prices.^[45] However, a Singapore Airlines spokesman came forward to dispel these rumours and confirmed that while talks are in progress, they are as yet non conclusive.^[46] On 2 September 2007, the airline concluded its purchase of a 15.7% stake in China Eastern, with Temasek Holdings holding another 8.3% in the Chinese airline^[47]. The deal will see China Eastern's parent company, China Eastern Holdings, shareholding drop to 51% from 59.7%, and give SIA the right to nominate two members on China Eastern's management board^[48]. The deal, worth 7.2 billion Hong Kong Dollars, will involve SIA buying 1.24 billion shares at 3.8 Hong Kong dollars a share, evoking a major rally in China Eastern's shares which rose 83.91% to hit 6.86 Hong Kong dollars a day after the announcement of the deal^[49]. SIA's empending entry into the Chinese market prompted Cathay Pacific to launch an attempt to block the deal by buying a significant stake in China Eastern and voting down the deal together with Air China, which already holds a 11% stake in the airline at the shareholder's meeting in December 2007^[50].

Financial performance

Operating performance

Branding

Flight attendants, known as the Singapore Girl, are heavily marketed as the airline's icon.

Main article: Singapore Girl

The Singapore Airlines branding and publicity efforts has revolved primarily around its flight crew,^[53] in contrast to most other airlines who tend to emphasize on aircraft or services in general. In particular, the nurturing of the female air stewardesses as the Singapore Girl has been widely successful, and is a common feature in most of the airline's advertisements and publications. The branding strategy aims to build a sense of mythical aura around the Singapore Girl, and portray her as representative of Asian hospitality and grace.

As part of efforts to build up the Singapore Girl icon, the airline runs a rigorous training programs for cabin and flight crew to ensure the SIA brand experience is delivered. The airline's repute, and the resulting prestige of the job has allowed it to be highly selective during its recruitment process as it receives numerous applicants locally and around the region.^{[citation needed]}

Dressed in a version of the Malay Sarong Kebaya designed by Pierre Balmain in 1968,^[54] the uniform of the Singapore Girl has remained largely unchanged. The male steward, in contrast, wears relatively sober light blue business jackets and grey trousers. In April 2001, the shoes were replaced by Pierre Balmain-designed safety shoes, in light of safety reviews after the Singapore Airlines Flight 006 crash where stewardesses complained of missing sandals.

Although a successful marketing image for the airline, it has also invoked criticisms for its sexist portrayal of women as subservient to male customers. Most feminist groups also contend that its reference is outdated, which sparks debates that most Singaporean women today are modern and independent.^[55] On 9 January 2007, the airline announced its intentions to tender out its existing advertising contract with Batey Ads, the Singaporean company, headed by founder Ian Batey, who is responsible for building up the Singapore Girl brand name and its partner since 1972.^[56] The image of the Singapore Girl will still remain, although SIA will now focus on advertising and promoting its modern fleet and technology instead. On 16 April 2007, the airline appointed New York-based advertising agent TBWA\ to handle its advertising for the airline, beating two other shortlisted candidates, namely DDB and Publicis. This contract is worth S$50 million per year over the following five years, making it the agent's largest win since it started operations in Asia in the late 1990s. The company provided no details about the three firms' bids, though its spokesperson Stephen Forshaw said they will start the new branding campaign "as early as there is a practicable opportunity". This change in advertising agency will not affect SIA's buying media agency, which is presently MEC.^[57]

Services

Main article: Singapore Airlines awards and accolades

Singapore Airlines have received numerous awards and accolades for the standard of service it provides. It claims to be "The World's Most Awarded Airline"^[58].

In-flight services

Cabins

Singapore Airlines announced a major upgrade to its cabin and in-flight service on 17 October 2006,^[59] its first major overhaul in a decade and costing the airline about S$570 million.^[60] Initially planned for its Airbus A380-800's introduction into service in 2006, and subsequently on the Boeing 777-300ER, the postponement of the first A380-800 delivery meant it had to be introduced with the launch of the first Boeing 777-300ER with the airline on 5 December 2006 between Singapore and Paris.^[61] There are no plans to introduce the service to the existing SIA fleet.

First class

There are four variations of the first class cabin, although the Suites class is designated by SIA as a "class beyond first"^[62] and uses a different fare class (R).

The flagship Suites product consists of separate compartments with walls about 1.5 metres high, and is offered only on the new Airbus A380. Windows are built into the doors and blinds offer privacy. The seat is as wide as any other first class offered by the airline, 35 inches. The bed is a separate mattress and comes out of the wall providing a 198cm x 69cm (78 X 27 in) sleeping area. Suites located in the centre can form a double bed after the wall is removed. Suites are not available for award redemption.

Introduced on 17 October 2006, "New" First Class on 777-300ER aircraft features a 35 inch wide seat upholstered with leather and mahogany and a 23in LCD screen. The seat reclines to lie completely flat.

Standard First Class on Boeing 747-400 aircraft features lie-flat SkySuites with 78in seat pitch and 22in wide seats, while selected Boeing 777-200s and all Boeing 777-300 aircraft (used mainly on regional flights) offer lie-flat 60in/21in seats.

Business class

Formerly known as Raffles Class, there are three variations of business class cabin.

On Boeing 777-300ER and Airbus A380 aircraft, a fully-flat bed is offered 1-2-1 configuration. The leather seat features a 15.4in personal television and an in-seat power supply.^[63]

Spacebed seats are available on Airbus 340-500 services, Boeing 777-200ER services, and Boeing 747 services between Singapore, Europe, Australia, New Zealand, Hong Kong, and the United States. The Spacebed seats are 27in (68.5 cm) wide and 72in (183 cm) long and convert to an angled flat bed. They have a retractable 10.4in (26.4 cm) personal television. The airline claims the Spacebed is the largest in its class, although Virgin Atlantic, an airline of which SIA owns 49%, makes the same claim.^[64] As the Spacebeds are angled, they are considered inferior to full-flat beds^[65] offered by some of its competitors, and passengers have complained of sliding down the bed while sleeping.

Traditional Ultimo Plus business class seats, which do not convert into beds, are offered on all Boeing 777-200 (excluding the 777-200ER), and 777-300 aircraft in a 2-3-2 configuration.

Executive economy class

Executive economy is only offered on Airbus A340-500 aircraft and replaces the standard economy class cabins. The seat has 37in seat pitch, 20in width and 150° seat recline, with a 9in personal screen and in-seat power supply at selected seats. A minibar is located at the back of the aircraft where light snacks and drinks are offered during the flight.^[66]

Economy class

All economy class seats have personal TVs, footrests, an adjustable headrest with side-flap "ears" and adjustable seat recline. Baby bassinets are available at some bulkheads.^[67]

Economy class seats on Boeing 777-300ER aircraft are 19in wide and offer in-seat power and a 10.6in personal TV.^[68]

Cuisine

A meal in Economy class served on a flight from Los Angeles to Tokyo.

Singapore Airlines offers World Gourmet Cuisine in all three classes. Regional dishes are often served on their respective flights, such as the Kyo-Kaiseki, Shi Quan Shi Mei, and Shahi Thali meals available for first class passengers on flights to Japan, China and India respectively.

Business and First class passengers may also choose to use the "Book the Cook" service on some flights, where specific dishes may be selected in advance from a more extensive menu.^[69][70]

In-flight entertainment system and communication

SIA's in-flight entertainment system, KrisWorld, was introduced in 1977. Long-range aircraft using the Wiseman 3000 offer on-demand movies, audio and Nintendo games in all classes. Business and first class passengers receive active noise-cancelling headphones.

In March 2005, SIA introduced Connexion by Boeing in-flight Internet service, and the system was extended to offer live TV in June.^[71] The service ended in December 2006 when Connexion was shut down by Boeing.

From October 2005, SIA has offered free language lessons in 22 languages^[72] and, starting December 2005, live text news feeds.^[73]

New Krisworld in-flight entertainment system in Economy class.

Singapore Airlines announced that Panasonic Avionics Corporation has been selected to create the new KrisWorld, Singapore Airlines' IFE system, using the new ex2 system.^[74][75]

• Large widescreen LCD TV with 1280 X 768 resolution
• A range of Movies, TV, music, games, and interactive programs
• Built-in office software, based on Sun Microsystems StarOffice Productivity Suite for use with USB Port
• In-seat AC power port

Ground services

Passengers may check-in between two to 48 hours prior to flight departure. Passengers may do this traditionally over the counter or at the lounge within the airport. Self-service kiosks are also available at Singapore Changi Airport. Alternatively, they may check-in at the Singapore Airlines Service Centre at The Paragon in Orchard Road, through the internet or by short message service. Online printing of boarding passes is available through internet check-in. Passengers on short trips may also check-in on their return flight upon departure from the city of origin. Telephone and fax check-in services were discontinued from 1 January 2007.^[76]

Lounges

The airline's Silver Kris Lounges are open to first and business class passengers, PPS Club and KrisFlyer El