Chapter 1
1. - The judgment between SQ and TG which airline is larger than the other.
Personally, I am quite proud of my national carrier “Thai Airways International”. Nonetheless, I cannot deny with the facts matter that “Singapore Airline” is more superior to Thai airways in every aspect.
First and foremost, Singapore Airlines is considered as MEGA airline. We may determine or rate SQ in the same range as Emirates. There are not many airlines in this world which own more than 100 aircrafts in their fleet. Moreover, SQ seems to be one of MEGA airlines. The fact is said to be proved that there SQ fleet consists of 107 in service and 109 aircrafts on order whereas TG fleet consists only 80 aircrafts in service and 16 aircrafts on order.
Regarding to numbers, SQ is certainly situated on the higher position that TG. The only same fact that TG and SQ share in common is that they are national carrier. Both of them are state owner, being controlled and influenced by the government. Somewhat, SQ seems to be more supported by its government. SQ is widely promoted and enhanced its service level standard from the government. Singapore government and SQ have cooperated and attempted to create Singapore Airlines characters which might base from existing culture.
There’s no wonder why Singapore is well known among FSC passenger. In fact, Thai Airways have disadvantages from wrong strategy plus being interfered and influenced by its government and politician.
TG seldom launched campaign which is able to promote its image while SQ did regularly. The image of SQ is more international. In addition, at same time SQ is able to keep Asian touch and its unique.
I do strongly believe that in condition that a passenger is able to choose between two airlines, SQ will be chosen at the first priority.
3- If an airline prefers to increase its revenue, it has to decrease the fare.
Related to my explanation on Singapore Airlines from previous topic, the facts demonstrate that SQ is one of good sample for this study.
SQ does not need to decrease its air fare to gain the revenue. On the contrary, SQ attempts to remain their stand as they are. As Singapore Airlines has never demoted their image but they used alternative strategy. SQ delivers their high standard service through the a bit higher price which passenger has paid. However, growth of this airline may guarantee that decreasing an airfare in order to get more revenue is wrong.
When we look on the other example from Middle East carrier, we may find failed strategy on airfare. In the old days, one of the most chosen and powerful airline in Middle East was Gulf Air. Nevertheless, Gulf Air seemed to use wrong marketing strategy, GF decreased airfare by wishing to generate more revenue. Unfortunately, the situation went wrong. GF could not control their YIELD management then the company let doing oversold. The result was severe since the airline had to transfer passenger to travel on other carrier by issuing ‘Flight Interruption Manifest” which costs double or triple expensive than passenger’s original ticket.
Having said that Emirates or other new era Arab’s carrier, they may use different strategy. Arab carrier owns and supplies themselves by their own fuel. Therefore, decreasing airfare ticket to gain more attention from passenger does not affect much on their cost.
Personally, airlines do not need to sell cheaper ticket to earn more revenue but they can increase their revenue by using right strategy.