Singapore Airlines Group has continuously grown in their global network, by improving their fleet and utilizing its position as a leader in key markets around the globe, with its recognition, the company has worked on a large scale while facing with various competitors in order for them to reach for their objectives. However, for the three financial years, Singapore Airlines has been facing a downfall in their revenue as well as passenger yields, one of the struggle faced by the company as of financial year 2015-2016 when they experience a marginal drop of -2.2% and consequently, it remains to fall during the financial year 2016-2017 at -2.4%.
Extracting to the Singapore Airline Annual Report, it stated that the reason for the downfall is due to the increase in competition and economic conditions. According to IATA, Oxford Economics (The Importance of Air Transport to Singapore, n.d.), Singapore Economy has played a huge role in the air transport sector, and it has supported the industry since 2014, $35 billion was contributed to the Singapore’s aviation sector from Singapore’s GDP (Gross Domestic Product).
From this observation, there’s an understanding that supports the declination but with that, there so much Singapore Airline have to do, in order for them to rise back.
