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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


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