Weaknesses
• While the strengths outlined above are certainly unmatched by any other in the industry, the company does still have some weaknesses. Analysts have noted that the company’s investment in low cost, short-haul carrier Tigerair is dragging the company down in terms of profitability (Air Transport World, 2014). In 2014, Singapore Airlines boosted its stake in the company by 7.3 per cent to 40 per cent, but the company has been consistently unprofitable since 2012. In an effort to boost its performance, that company has attempted to establish a presence in markets other than Singapore (particularly in Thailand and the Philippines) but these efforts at market penetration have, to date been unsuccessful. This is a considerable weakness for Singapore Airlines, for low cost carriers in the South East Asian markets have recently been experiencing a boom (Pearson and Merkert, 2014).