Singapore Airlines 2004 - Managing Organisational Change in a Turbulent Environment
By Wee Beng Geok & Shirley Koh
Publisher Ref No:
ABCC-2004-004
Pub/Rev Date:
2004
Industry:
Airlines & Aviation
Case Length:
14 pages
Teaching Note Ref:
ABCC-2004-004(TN)
Teaching Note:
5 pages
Organisation:
Singapore Airlines
Period Covered:
1994 - 2004
Country:
Singapore
Level:
Undergraduate/ Postgraduate
Publisher:
The Asian Business Case Centre, Nanyang Technological University
Abstract
The emergence of low cost carriers in Asia was a threat to Singapore Airlines' proven and successful business model based on premium fares for premium services in early 2004.
To maintain what the airline's shareholders regarded as acceptable returns, while continuing with its well-developed and highly effective work processes and systems, the company had to make deeper cost cuts in its operations. Consequently carefully nurtured and well-established relationships between employees and management were subject to tremendous stress and strain. The challenge for the CEO was how to balance the different and sometimes conflicting needs of various stakeholders while effectively managing the imperatives of massive changes taking place in the airline industry in Asia.
Issues: Managing change and high performance work systems in a turbulent business environment