Singapore Airlines (SIA) was considering a strategic partnership with TATA Group to form a full service airline in India's domestic market, after the Indian government allowed foreign investment in aviation. However, TATA had just partnered with AirAsia to launch a low-cost carrier in India, raising concerns for SIA about partnering with a company starting a competing airline. While India represented a large potential market, SIA's priority was ensuring the rationale for entering the Indian market was sound.

1. Singapore Airlines: The
India Decision
(Abridged)

2. Indian Government decided to allow Foreign
Direct Investment (FDI) in the Aviation Sector.
Thereby, Singapore International Airlines (SIA)
was considering a strategic partnership with
TATA Group with the US$100 bn. to form a full
service airline to serve domestic market.
However, TATA had just announced its
partnership with Malaysia’s AirAsia to form a
low-cost carrier service in India.
For SIA, it raised an open question about the
possible dangers of partnering with a company
that was starting a low-cost airline in parallel,

3. Singapore International
Airlines (SIA) was founded in
1972 .
 SIA had evolved over 4 decades from a regional
airline to one of the most respected travel brands
across the globe.
SIA had positioned itself as a leader in customer
service, offering extravagant standards on the
ground and new level of comforts, cuisine and
entertainment in the air.
It focused on the geographical segments of
Southeast Asia, East Asia, South Asia and the
“Kangaroo Route” which flew passengers between
UK and Australia.

5. SIA Operating Earning
• In 2000, to increase the number of
destinations it served, SIA joined the
Star Alliance network of airlines via
code sharing.
• The Most notable work of SIA was to
launch the world’ largest non-stop
commercial flight from Singapore to Los
Angeles in 2004; taking delivery of
world’s first Airbus 380 in 2007.
•SIA also became the first carrier
to operate all-business class non
-stop flight from Singapore to
New York in 2008.
• In FY 2011/2012, the airline reported
total revenues of $9.6 billion with net
profits of $310 million.
• Since it started operations , SIA has
never posted a negative annual return.

6. The Indian Aviation Market
• The Indian Aviation Market was the ninth largest in the
world in terms of passenger traffic and reported total
revenue of$9.5 Billion with the losses of $1.65billion.
• With liberalization of the market and the entry of
domestic low-cost airlines is rapidly grew their market
share to reach 59% early 2013.
• For the second most population country in the world with
1.22 billion people, this represented a tiny fraction. The
primary alternative means of transport for long distance
travel – the railways – carried 23 million passengers
daily.
• Over the next 10 years investment of $30 billions would
be necessary for upgrading existing airports provisioning
for second airport in all metro cities and constructing
green field airport.

7. India Annual Domestic & International
Passenger Numbers 96/ 97 – 08/ 09

8. SIA : Entering The Indian Market ?
India was the Sixth Largest market for the
SIA group.
4% share of the international skies from
India.
Restricted growth – refusal of Indian govt.
Partnership with TATA (Ongoing issue
with Air Aisa
Foremost concern – to make sure that the
rationale for entering Indian airline industry
was solid.

10. Thank You