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British Airways and Lufthansa

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I understand that if I am suspected of plagiarism or another form of cheating, my ark will be referred to the Academic Registrar/ or the Board of Examiners, which may result in me being expelled from the program. Signed: Date Submitted: Acknowledgment of Assignment Receipt (Students are required to fill up this acknowledgment slip upon submission of assignments) Student Name: Addenda Bin Abdul Raman Program / Intake: Bachelor of Science/45th Intake Student Number: 13212316 Module: Business Strategy Lecturer: Mr. John F.

Helpful O Assignment 1 / Assignment 2 Received by: Article: “Sis’s new offering among the ‘possess” – Straits Times, Friday, February 6th 2015 In the article, the writer writes about the new premium economy class from Singapore Airlines which is set to be one of the ‘possess’ in the industry.

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Singapore Airlines will launch the premium economy class in August with enhancements like wider seats that recline further, extra legroom and better food – all for around 20 per cent more than a regular economy class ticket, excluding promotional fares.

He also added that 30 airlines – including Santa, Air France, British Airways and Lufthansa – currently offering a premium economy product. It was mentioned that SIS had offered premium economy class on its non- top flights to the United States in 2004 but in 2008, these flights were made as Business class until they were called off in 2013 due to lack of demand from customers. The writer mentions about the gap between premium economy and business class on SIS is expected to be a significance as it has minimal risk of business class travelers downgrading and eroding revenue in the process.

The new class will launch first on flights to Sydney, with more destinations including London, Frankfurt, Hong Kong and Tokyo to be added later with a total investment for the new cabins estimated to be at US$80 Million. SIS has developed a reputation for being an industry trend-setter as well as doing things differently than its competitors who are in the industry. There’s no denying that SIS has one of the world’s best quality in customer services. But by introducing a new product, it enhances its business strategy.

It is important to SIS to expand with other airlines in terms of how it could compete with the growing aviation industry. As the airline industry grows with ‘cheaper’ tickets from competing airlines such as Jetsam, Eurasia and Digerati. It seems that customers are leaning towards eating cheaper tickets than paying for getting a comfortable seat on an airplane. In my opinion, I would think it is more practical to get a cheaper ticket than getting food and a comfortable seat for a 2 hour flight. There are reasons on why would think on why this could be a disadvantage towards Singapore Airlines.

Firstly, the obvious reason would be SIS tickets are selling at a higher rate compared to Jetsam, Digerati or Air Asia. A flight to Bangkok can cost $265 with Singapore Airlines while it could cost half of it with Jetsam. Singapore Airlines which is of course, one of the top airlines in the world, cannot be lowering their ticket prices to fit with Jetsam and Digerati, it’s impossible. For one thing, Singapore Airlines profit will fall sharply; they have 12 fleets to take care off in comparison to budget airlines which has only 1 type of fleet.

In my opinion, in order to compete with this, is by of course, enhancing your image, make greater comfortable seats and have better quality food. However, in a separate strategy, SIS did set up a budget airline called “Scoot”. With the introduction of the premium economy seats in their fleets, the seats are elatedly larger than their normal economy seats, hence, it will have a significant drop in the number of passengers the fleet could original sustain with the normal economy seats.

However, SIS has already priced the premium economy seats to be 20 % more than their normal economy seats; I would think with the implementation of a higher ticket price, it could make up for the reduction of passengers. In my opinion, in business, it’s best to find ways to generate more revenue rather than losing it. But the most important factor of it is all whether this enhancement to their economy seats will attract and greatly lure more customers in to fly with Singapore Airlines.

Like what previously was said, budget air has become a prominent figure in the airline industry; people want cheaper tickets even with forsaking comfort, food, baggage and even good quality customer service. This premium economy seats has to be attractive in terms on pricing, how can the price of the premium economy seats be attractive to the customer – will it be more “money worthy’ or just another gimmick by Status to get more revenue from customers by just adding a few extra spaces on their seats.

Another factor to consider is how special this seats can be, does it have that “WOW’ factor for customers to experience during their flight with Singapore Airlines. In concluding this essay, I do believe that with SIS introducing the new premium economy class, it is a very good business strategic move for the company. If you cannot compete, enhance whatever you have, with this move, it gives the organization a new edge to be more competitive in the aviation industry. Believe with the new product, it will eventually give a new whole idea to customers on how they can travel more comfortably with SIS.

Cite this British Airways and Lufthansa

British Airways and Lufthansa. (2018, May 23). Retrieved from https://graduateway.com/assignment-128/

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