Singapore Airlines introduced a second non-stop all-business class on the Singapore-US route in less than three months after it began a similar service to Newark Liberty International Airport, New Jersey in 2008. Singapore Airlines known for innovation, genuine quality, a trendsetter and excellent customer service was popular among air travellers. But, the industry experts questioned the viability of the long-haul flights when several such flights were closed especially in the transatlantic route, due to the slow down in the global economy, an historic rise in fuel prices and a decrease in passenger traffic. According to the International Air Transport Association, international passenger traffic grew 4.3% in January 2008 compared to 6.7% in December 2007 and 7.4% for the entire year 2007. It remained to be seen, how Singapore Airlines plans to manage its affairs and keep up its image of trendsetter and sustain its all-business class model in the wake of a globally decreasing passenger traffic growth rate.

Question:

1) Analyse the problem from the perspectives of:

a) Attractiveness of business class travel in long-haul air travel.

b) Differentiation and first mover advantage for Singapore Airlines.

c) Brand leveraging for Singapore Airlines.

d) Global Economy transition.

e) Passenger load/ Limitations with prospective customers.