3.1.1.2 Economic Factors:
Economic conditions help evaluate how easy or how difficult it is to be successful and profitable at any time because they affect both capital availability and cost, and demand
(Thompson, (2001)) .
From economic point of view limitations to Singapore Airline industry can result from several sources, such as, regulatory constraints imposed by overseeing agencies, changes in technology, trends in the demand level, supply side factors, such as scale, scope and network economies, and market organization determinants such as nature of competition. Economically, Singapore airlines lead to a greater control on capacity, therefore reducing competition and increasing yields. By code sharing airlines are able to not only split costs but to offer services and enter new markets. This leads to less aircraft at airports, therefore less space being required, and is another way in gaining access to prime airports, which can expand no further.