Singapore Airlines



Singapore Infopedia

Background

Incorporated on 28 January 1972, Singapore Airlines (SIA), the national carrier of Singapore, is one of the most successful airlines in the world.1 SIA has received numerous accolades and awards including Business Traveller Asia-Pacific’s Best Airline Award, Skytrax’s World’s Best Airline Award and Conde Nast Traveler’s Best Airline in the World Award.2 The airline is listed on the Singapore Exchange, with Temasek Holdings being its majority shareholder.3

Background
SIA’s origins can be traced to the Malayan Airways Limited, which was formed on 21 October 1937 by British Imperial Airways (later British Overseas Airways Corporation), Straits Steamship Company, and Ocean Steamship Company of Liverpool.4 Malayan Airways was inactive for a while, as there were doubts over the commercial viability of a Singapore–Malaya air-route at the time, coupled with the outbreak of World War II. It did not make its maiden commercial flight until 1 May 1947 when a MAL Airspeed Consul took off from Singapore to begin a thrice-weekly scheduled flight to Kuala Lumpur, and then on to Ipoh and Penang.5

Thereafter, Malayan Airways grew steadily, adding more routes to domestic and regional destinations such as Jakarta, Medan, Palembang, Saigon (now Ho Chi Minh City), and Hong Kong. It also increased its fleet size with the acquisition of new jet aircraft: Douglas DC-3, the DC-4 Skymaster, Vickers Viscount, Lockheed Super Constellation, Comet IV, Fokker F27, Bristol Britannia, and Boeing 707 and 737.6

Formation of SIA
Following the formation of the Federation of Malaysia on 16 September 1963, Malayan Airways changed its name to Malaysian Airways. After Singapore’s exit from the Federation on 9 August 1965, the airline was renamed Malaysia-Singapore Airlines (MSA) in May 1966.7 That month, the Singapore and Malaysia governments injected fresh capital into the carrier, bringing their shareholdings to 42.79 percent each. The rest of the shares were held by the Brunei government, British Overseas Airways Corporation, Qantas, Straits Steamship Company and the Ocean Steamship Company.8

MSA was profitable, but soon differences arose between the Singapore and Malaysia governments over the airline’s corporate direction.In January 1971, the Malaysian and Singapore governments announced that MSA would be restructured into two separate national carriers.10 The airline’s assets were divided, with the Malaysian carrier, named Malaysian Airline System (MAS), receiving the Friendship Fleet, Britten-Norman aircraft, equipment in Malaysia, and all the domestic routes in Malaysia.11

Singapore, on the other hand, received all the Boeing aircraft, airline headquarters building, aircraft hangars and maintenance facilities at Paya Lebar Airport, computer reservation system and most of the overseas offices. It also took over MSA’s international route network encompassing 22 cities in 18 countries.12 The Singapore carrier was then incorporated on 28 January 1972 as Mercury Singapore Airlines, which shared the same MSA acronym as the dissolved Malaysia-Singapore Airlines.13 This irked Malaysia, which was prepared to seek legal action to prevent the use of the acronym unless Singapore was willing to pay a compensation of S$72.7 million.14 In the end, both sides resolved the issue, and Mercury Singapore Airlines was renamed Singapore Airlines (SIA) on 27 June 1972.15 On 1 October 1972, SIA began operations with three flights – one bound for London, the other for Sydney, and the third on its way back to Singapore.16

Expansion and strategies
Because of the lack of a domestic air-travel market, SIA and the Singapore government sought to expand the airline’s international route network.17 Between 1973 and 1997, the government signed air services agreements with the governments of Australia, New Zealand, Indonesia, Malaysia, Japan, India, Taiwan, Korea and the Philippines.18 These agreements helped pave the way for future negotiations for air traffic rights. Other routes were added via code-sharing agreements and strategic alliances.19 As of March 2023, SIA’s operations include 74 destinations across over 30 countries.20

To complement the expansion efforts, SIA constantly enlarged and renewed its aircrafts to ensure it had a modern fleet.21 In fact, within months of its formation, SIA became the first airline in Southeast Asia to order jumbo jets, when it placed an order for two Boeing 747-200 aircraft.22 This was soon followed by others such as the Airbus 300 Superbus, which went into service in February 1981 and the Boeing 747-300 in May 1983.23

In 1989, Singapore Airlines became the first airline to operate a Boeing 747-400 across the Pacific.24 It was also among the first to operate the wide-body Boeing 777 in 1998.25 In 2004, SIA inaugurated its first A340-500 by setting a record for the world’s longest non-stop commercial flight from Singapore to Los Angeles in February, and Singapore to New York in June.26 On 15 October 2007, SIA made history again by taking delivery of the world’s first A380.27 As of March 2023, SIA’s fleet comprised 133 aircraft with an average age of six years and two months.28

Other facets of SIA’s strategy include the development of Singapore Changi Airport as an air traffic hub, and the promotion of Singapore as a choice travel destination.29 In 1999, the carrier launched KrisFlyer, its first proprietary frequent flyer programme, to allow First, Business and Economy Class customers to earn mileage credits which could later be redeemed for travel vouchers and discounts.30

Upgrades and service culture
From its inception, SIA committed itself to providing impeccable cabin service standards for its customers.31 One of the highlights of the carrier’s service features includes offering economy-class passengers a choice of meals, complimentary drinks and headphone sets for in-flight entertainment.32 These privileges garnered SIA’s reputation as a premier carrier with high standards of cabin service.33

SIA has continued to work at distinguishing itself from its competitors by developing and investing in service innovations and in-flight offerings over the years. In October 2006, it launched the world’s widest First and Business Class full-flat seats.34   It periodically upgrades its cabins with more comfortable seats and better entertainment systems, such as in Boeing 777-300 ER aircrafts in 2013, Airbus A380 fleet in 2017 and the Boeing 787-10 Dreamliner in 2018.35 The premium economy cabin class was launched in 2015, and in July 2023, the airline extended unlimited complimentary Wi-Fi access to KrisFlyer members in all cabin classes.36

To advance its service culture, SIA operates seven schools to train staff in the core functional areas of cabin services and airport services.37 The Management Development Centre provides executive and leadership programmes for staff from all sections of the company to produce effective administrators and farsighted managers.38 The company benchmarks its customer service not only against other airlines, but also against those in the service and hospitality industries such as hotels, restaurants and car rental companies. These measures have helped SIA receive a long list of awards for service excellence from various publications and surveys.39

Branding
SIA invests substantially in advertising, spending about S$35 million annually in its first 21 years.40 In 2023, the carrier spent about S$326 million in advertising and sales.41 

One of the most enduring branding efforts of SIA was the launch of the “Singapore Girl” advertisement campaign. Conceived by Batey in 1972, the advertisements focused on the inflight service culture of SIA, rather than the aircraft’s hardware and technical features. The concept was to project the impeccable and elegant service standards of the airlines, exemplified by the SIA stewardesses dressed in the distinct sarong kebaya uniform created by renowned French designer Pierre Balmain in 1968 for MSA. Despite criticisms of sexism and subservience in the image, the Singapore Girl, together with the slogan "A Great Way to Fly", is now one of the airline’s most recognisable trademarks. 42

Investments, alliances and subsidiaries
SIA has associate companies to support its operations, aviation engineering and air cargo services, such as Tradewinds, SIA Engineering and Singapore Airlines Cargo.43 SIA once wholly-owned three airline subsidiaries, namely SilkAir which operated regional flights to secondary cities, and Scoot and Tigerair, which operated in the low-cost carrier sector.44 SilkAir was merged into SIA in 2021, and Tigerair was merged into Scoot in 2017.45

During the 1990s, SIA sought to acquire stakes in other airlines to increase capacity and explore new opportunities. SIA’s first attempt was a failed bid in 1992 to own a stake in Qantas. Following this, potential investments in several airlines reached varying stages, but none came to fruition.46 However, between 1999 and 2000, SIA was able to clinch its first two major investments by taking a 25 percent stake in Air New Zealand and a 49 percent share of Virgin Atlantic.47 In addition, SIA entered strategic alliances with Delta and Swissair in 1989, as well as a joint marketing agreement with Air Canada.48 This was followed by link-ups with Ansett, and with Lufthansa between 1997 and 1999.49 In April 2000, SIA joined the Star Alliance, a 28-member airline grouping that allows its members to share airport terminals (or co-locations), communication initiatives and other services including air travel rewards programme.50

SIA signed a partnership agreement with Malaysian Airlines on 30 October 2019 to grow traffic between Singapore, Malaysia and other markets.51 As part of its multihub strategy, the carrier acquired a 25.1 percent stake in Air India following its merger with Vistara in November 2022.52 As at March 2023, the carrier had 33 code-share partners providing access to 230 destinations through these partnerships.53

Covid-19 pandemic
With the outbreak of the pandemic and border restrictions, SIA suspended flights from early 2020 to early August 2021.54 The airline recorded its first full-year loss of S$212 million for the financial year 2019/2020. To cut costs, SIA delayed non-critical projects, reduced management salaries and director fees, and furloughed staff.55 Pilots took pay cuts ranging from 10 to 60 percent until March 2022, while cabin crew were deployed to hospitals and nursing homes.56 As restrictions eased after the lockdown, SIA offered services such as tours of its training facilities, dining experiences and home food delivery.57 In May 2023, the Singapore Airlines group reported a record annual profit of S$2.16 billion, reversing three straight years of losses.58



Author
Alvin Chua



References
1. Roy Allen, SIA: Take-Off to Success (Singapore: Singapore Airlines, 1990), 59–60. (Call no. RSING 387.70605957 ALL)
2. “Our Awards,” Singapore Airlines, accessed 24 October 2023.
3. Tham Poh Cheong, Lee Cheuk Yin and Angela Koh, eds., Singapore Enterprises in China: 14 Success Stories on Temasek-Linked Companies (Singapore: IE Singapore, Lianhe Zaobao & Lingzi Media, 2004), 243–9. (Call no. RSING 332.6735957051 SIN)
4. Allen, Take-Off to Success19.
5. Allen, Take-Off to Success19; Ten Proud Years 1947–1957: Great Day in the History of Malayan Airways,” Straits Times, 1 May 1957, 12. (From NewspaperSG)
6. Allen, Take-Off to Success122.
7. Allen, Take-Off to Success49–51; Now It’s Malaysian Airlines,” Straits Times, 28 November 1963, 1; “MAL Is Now MSA,” Straits Times, 31 December 1966, 1. (From NewspaperSG)
8. Allen, Take-Off to Success51.
9. Allen, Take-Off to Success57–59.
10. P. M. Raman, “MSA to Split,” Straits Times, 26 January 1971, 1. (From NewspaperSG)
11. Allen, Take-Off to Success57–59.
12. “MSA It Is!” Straits Times, 29 January 1972, 1; “Mercury Is All Set for ‘Take Off’ in June,” Straits Times, 3 February 1972, 3 (From NewspaperSG); Allen, Take-Off to Success59.
13. “MSA It Is!
14. “MSA It Is!”; “MSA Board — to Meet on May 11 over Goodwill Claim,” Straits Times, 28 March 1972, 13; Poteik Chia and Nancy Byramji, “It’s Fly SIA!” Straits Times, 1 July 1972, 1. (From NewspaperSG)
15. “MSA It Is!”; “MSA Board”; Chia and Byramji, “It’s Fly SIA!
16. Arthur Richards and Richard Loong, “Big Champagne Party By Union to Mark the Birth of SIA,” Straits Times, 1 October 1972, 7. (From NewspaperSG)
17. Allen, Take-Off to Success61–63.
18. Wee Beng Geok, ed., Government-Linked Companies and other Organisations in Singapore (Singapore: Nanyang Technological University, 2004), 24. (Call no. RSING 352.266095957 GOV)
19. Wee, Government-Linked Companies17–19.
20. Singapore Airlines, Annual Report FY2022/23 (Singapore: Singapore Airlines, 2023), 19.
21. Singapore Airlines, The Pursuit of Excellence: An Island and Its Airline (Singapore: The Airlines, 1979), 32–33. (Call no. RSING 387.70655957 SIN)
22. “Into a New Era,” Straits Times, 3 September 1973, 5. (From NewspaperSG)
23. “SIA’s First Airbus to Arrive on Tuesday,” Straits Times, 16 January 1981, 14; Sunny Wee, “SIA Spends $1.5m to Sell Big Top,” Straits Times, 8 May 1983, 8. (From NewspaperSG)
24. Alan Hubbard, SIA’s Mega-star Reaches London in Record Time,” Straits Times, 3 June 1989, 21. (From NewspaperSG)
25. “World’s First B777-300 Coming to S’pore,” Business Times, 10 June 1998, 44. (From NewspaperSG)
26. Singapore Airlines, “Our Heritage.”
27. Karamjit Kaur, “Flying into History,” Straits Times, 26 October 2007, 4. (From NewspaperSG)
28. Singapore Airlines, Annual Report FY2022/23 (Singapore: Singapore Airlines, 2023), 20.
29. Singapore Airlines, Pursuit of Excellence12–15.
30. Rahita Elias, “SIA Woos Travellers with KrisFlyer,” Business Times, 28 January 1999, 23. (From NewspaperSG)
31. Allen, Take-Off to Success69–72.
32. “Big Bucks and High Stakes,” Straits Times, 10 July 1994, 6. (From NewspaperSG)
33. Allen, Take-Off to Success69–72.
34. Ven Sreenivasan, “Not Just Great, But a Luxurious Way to Fly,” Business Times, 18 October 2006, 1. (From NewspaperSG)
35. Jermyn Chow, “SIA's New-Look Cabins Take to the Skies,” Straits Times, 27 September 2013, 10 (From NewspaperSG); Karamjit Kaur, “SIA’s New A-380s to Offer Better Seats and Carry More Economy, Premium Economy Passengers,” Straits Times, 2 November 2017 (From Newslink via NLB’s eResources website); Adrian Lim, “Singapore Airlines Flights on Latest Dreamliner to Feature Bigger Entertainment Screens, Upgraded Seats,” Straits Times, 28 March 2018. (From Newslink via NLB’s eResources website)
36. Karamjit Kaur, “SIA Launches Premium Economy Class,” Straits Times, 22 May 2015 (From Newslink via NLB’s eResources Website); Tay Peck Gek, “SIA to Offer Free Unlimited Inflight Wi-Fi to All KrisFlyer Members,” Straits Times, 1 June 2023. (From Newslink via NLB’s eResources website)
37. Loizos Heracleous, Jochen Wirtz and Nitin Pangarkar, Flying High in a Competitive Industry: Secrets of the World’s Leading Airline (Singapore: McGraw Hill, 2009), 155–7. (Call no. RSING 387.70655957 HER)
38. Heracleous, Wirtz and Pangarkar, Flying High in a Competitive Industry157.
39. Jochen Wirtz and R. Johnston, “Singapore Airlines: What It Takes to Service Excellence – a Senior Management Perspective,” Managing Service Quality 13, no. 1 (2003): 10–19. (From ProQuest via NLB’s eResources website) 
40. Heracleous, Wirtz and Pangarkar, Flying High in a Competitive Industry59.
41. Singapore Airlines, Annual Report FY2022/23 (Singapore: Singapore Airlines, 2023), 109.
42. K. Wong, “The Singapore Girl: From an Experiment to an Icon,” Channel NewsAsia, 28 July 2015. (From Factiva via NLB’s eResources website)
43. Wirtz and Johnston, “What It Takes to Service Excellence,” 10–19; “SIA Will Transfer Tour Activities to Subsidiary,” Singapore Monitor, 24 March 1984, 4; “New Engineering Company Shows Potential for Public Listing,” Straits Times, 3 July 1992, 47; George Joseph, “SIA’s Cargo Ops Now a Separate Company,” Business Times, 29 June 2001, 7. (From NewspaperSG)
44. Gerry de Silva, “Tradewinds to Be Renamed SilkAir, Plans to Buy More Planes,” Straits Times, 13 March 1992, 48; Karamjit Kaur, “SIA Long-haul Budget Carrier to Start Next April,” Straits Times, 11 October 2011, 3; Kelvin Wong, ”SIA to Start Budget Carrier,” Straits Times, 10 December 2003, 1. (From NewspaperSG)
45. Singapore Airlines, Annual Report FY2021/22, Singapore Airlines, (Singapore: Singapore Airlines, 2022), 3; Adrian Lim, “Scoot Stretches Wings to Fly More Long-haul Routes,” Straits Times, 12 May 2017, 3. (From NewspaperSG)
46. Wee, Government-Linked Companies19–20.
47. Wee, Government-Linked Companies20.
48. Wee, Government-Linked Companies30.
49. Wee, Government-Linked Companies20–21.
50. Ravi Velloor, “Star Alliance Welcomes SIA to the Constellation,” Straits Times, 8 April 2000, 89. (From NewspaperSG)
51. Malavika Menon, “SIA and MAS Propose to Expand Code-sharing Routes, Share Revenue for Singapore-Malaysia Flights,” Straits Times, 31 October 2019; Adeline Tan, “Singapore Airlines and Malaysia Airlines Given Approval for Partnership Agreement,” Straits Times, 10 May 2022. (From Newslink via NLB’s eResources website)
52. Ven Sreenivasan, “Vistara-Air India Merger to See SIA Get 25.1 Per Cent Stake for $360m,” Straits Times, 29 November 2022. (From Newslink via NLB’s eResources website)
53. Ven Sreenivasan, “SIA Posts Record Revenue and Earnings, Expects Robust Travel Demand to Prevail in 2023,” Straits Times, 16 May 2023. (From Newslink via NLB’s eResources websites)
54. Gabrielle Andres, “Singapore Airlines to Reduce Flight Capacity by 50%, Expects Further Cuts to Capacity,” Channel NewsAsia, 17 March 2020; Brenda Sobie, “Commentary: Hit Hard by COVID-19, Singapore Airlines May Need to Pursue Deeper Capacity Cuts,” Channel NewsAsia, 25 February 2020 (From Factiva via NLB’s eResources website); Singapore Airlines, Annual Report FY2021/22, Singapore Airlines, (Singapore: Singapore Airlines, 2022), 6.
55. Ng Jun Sen, “The Big Read: Floored by Covid-19, Can SIA Soar Again? Fate of S’pore Aviation Hub Rests on It,” Today, 26 September 2020. (From Factiva via NLB’s eResources website)
56. Ng, “Floored by Covid-19, Can SIA Soar Again?”; Gabrielle Andres, “From Trips to Nowhere to ‘Flying Lessons’, How Airlines Are Keeping Afloat Amid the COVID-19 Pandemic,” Channel NewsAsia, 14 October 2020. (From Factiva via NLB’s eResources website)
57. Andres, “From Trips to Nowhere to ‘Flying Lessons’, How Airlines Are Keeping Afloat Amid the COVID-19 Pandemic.”
58. Yasmin Begum, “SIA Group Posts Record Annual Profit of S$2.16 billion after three years of losses,” Channel NewsAsia, 16 May 2023. (From Factiva via NLB’s eResources website)



Further resources
Ian Batey, Asian Branding: A Great Way to Fly (Singapore: Prentice Hill, 2002). (Call no. RSING 658.827 BAT)

Chang Zeph Yun, Yeong Wee Yong and Lawrence Loh, The Quest for Global Quality: A Manifestation of Total Quality Management by Singapore Airlines (Massachusetts: Addison-Wesley Pub, 1996). (Call no. RSING 387.70655957 CHA)

Wee Beng Geok, ed., Government-Linked Companies and other Organisations in Singapore (Singapore: Nanyang Technological University, 2004), 1–37. (Call no. RSING 352.266095957 GOV)



The information in this article is valid as of November 2023 and correct as far as we are able to ascertain from our sources. It is not intended to be an exhaustive or complete history of the subject. Please contact the Library for further reading materials on the topic.

 


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