6.4.1 Increasing Returns
SIA is in an increasing returns situation because its success tends to breed
success. There appears to be no let up. From year to year, it has been
collecting award after award.6 The expansion of its fleet is testimony to its
continued profitability despite soaring oil prices. Many other airlines have
filed, or are in the process of filing, for bankruptcy. Example in the US
include United Airlines, US Airways, Hawaiian Airlines, ATA Airlines (also
known as "American Trans Air"), and Aloha Airlines (Hasbrouck, 2005).