Its a detailed project to analyze and study Singapore Airlines website and its effort to increase its UI for customers. From the study it can easily be concluded that its Website aids various uses including Marketing and Promoting besides e-commerce and ticket booking.
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TABLE OF CONTENTS
1. Executive summary 3
2. Purposeof the website 4
3. Website Analysis 4
4. Web business model 7
5. Analysis of market mix 12
6. Analysis of Financial Statistics 16
7. Target market and customer
behavior
21
8. Customer relations 23
9. Navigation and traffic building 25
10.Comparativeanalysis 30
11.Suggestions for the website 35
12.Conclusion 36
13.References 37
3. 3
EXECUTIVE SUMMARY
Singapore Airlines (SIA) is consistently recognized as the world’s
“best” airline. It is regularly voted “best business class”, “best cabin
crew service”, “best in-flight food”, “best for punctuality and safety”,
“best for business travelers”, “best air cargo carrier” and “Asia’s
most admired company (Wirtz and Johnston, 2003). SIA, like other
airline companies, is not a just a product based company; rather it is
a service based company. This poses a serious challenge internally in
terms of being the best in every aspect. Development of the
company website has proved a good strategy to stay ahead in
market competition and customer personalization.
In terms of e-commerce, SIA has used its website
www.singaporeair.com as a direct interface between customers and
the company.it can also be reached through search engines like
Google and yahoo. The webpage is customized, well explained,
simplest way used by SIA to interact with its customers and for B2B
purposes.
The purpose of the website is to deliver a unique experience for SIA
web users. In the report, Singapore airlines website is analyzed
carefully against its appearance, web business model, credibility and
persuasion, personalization and traffic building. Its strengths and
weaknesses are enlisted and recommendations have been made
accordingly from a customer perspective.
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PURPOSE OF THE WEBSITE
With time and advancements in internet, most of the companies like
SIA have shifted their business from real to virtual mode. This is done
using an internet dependent websites. The official Singapore airlines
link is ‘www.singaporeair.com.’ purpose of the website is to reach
everybody in any part of the world and making them convenient to
plan their journeys and book tickets sitting at home or office with
just one click.
WEBSITE ANALYSIS
Reaching the website:
In the modern-day scenario, where things are just a click away,
websites play an important role to make business, and to hold
business. Singapore airlines have excelled from this lesson. When a
layman types in www.singaporeairlines.com, www.singaporeair.com,
or fill in Singapore airlines or SIA in Google or yahoo, and click the
very first option (which is definitely Singapore airlines), he or she is
automatically diverted to company’s webpage. Further, the first page
is a universal page, from which you can chose language and country
you wish to surf into the website.
Color:
The sky-blue color with white in contrast is self-explanatory,
that the company relates to sky. The colors are eye soothing, and
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give a feeling of goodness and temptation to everybody who loves
sky. Thus, just the colors make it clear what company is and what
customers it targets (Fig 1).
Fig 1. The Singapore airlines webpage. The sky-blue color used
delivers the information about the company’s main product. (source:
(SIA, 2009) )
Quality vs quantity: The website is a good example of delivering
quality over quantity keeping in mind the hectic lives people have
these days. SIA realizes that almost everybody logging into the
website aims to either book tickets or check prices, therefore, on the
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very first page (homepage) we will find the flight booking column.
Again, with this simple approach, SIA has targeted the entire working
population. Further, if anybody wants other information, the person
can click into the relevant options on the top of the page. You can
change your location, surf the web site map, get information about
pre-flight services like checking in (which SIA is also providing online)
and also about loyalty programs and Kris flyer memberships and
promotions. Lastly, some lucrative promotions can also be sighted at
the home page, which a user can refer if planning to fly.
Multimedia and upload speed: The website content is plotted in
HTML as well as in Flash. Thus, usually no special software download
is required to view the website. Also, no plug-in is demanded by the
website. Being simple with a bit of animation and graphics, the
website is easily accessible by everybody, even if the user is using a
weak dialup internet connection. Overall, the website fast, easily
uploaded and balanced in terms of graphics.
Availability: The website is available 24*7.
Stickiness factor: SIA has an advantage that its product itself brings
in the stickiness factor. Anybody booking air ticket surfs into website
for all related information about the travel. To enhance the factor,
SIA has provided some interesting data, like ‘before you fly’ option
which gives you details about the airport lounges, check in, about
Changi Airport in Singapore. Then in ‘Promotion’ option, one can find
details about Singapore, boarding, stop over at Singapore and about
recent promotions. Thus, for a person who is travelling, like from
Australia to LA, one gets keen to know what goes on in Singapore,
what if he takes a beak journey via Singapore, does he need to wait
in que for check in? How can he get a seat with more leg space? And
so on. All these desperate questions are answered by the website
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and thus a person finds it hard to leave the webpage. According to
Alexa database, a customer on an average spends about
5.2mins/day on the SIA website (Alexa, 2009).
Ability to deliver the aim: The major aim of the website is to satisfy
core customer service through a virtual medium. The focus of the
website is to run the core competencies of the company that is its
business, using internet as a medium.
WEB BUSINESS MODEL
Singapore airlines, follows a customer centered web business model.
Like any other airline industry, he models begins and end with the
customer. A rough flowchart of the e-business process followed by
all airlines is as shown below (fig 2). The current model is a profit
centered model with little customer reference. In such a model,
pricing and sales are correlated to generate profits.
According to SIA senior management, customer service is the key of
Singapore airlines success. Thus, every effort is being made to
provide the best any customer can expect (Wirtz and Johnston,
2003). With such a strategy, it is expected the modification of the
profit based web model to be more of customer centered profit
based web model. An example of a customer centered e-business
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model (CCEB) is given in figure 4. The model has been derived using
MS Visio2000 software (Jiang and Doukas, 2003).
Fig 2. Generic Airline e-business model (Source: (Smith et al., 2001))
The CCEB model is in infant mode as, in present scenario, study of
the web models is not yet widely flourished. The Diagram in fig 3
shows how sales are generated using data from pricing and booking.
In such a model, the emphasis is on generating a global approach to
achieve uniformity in prices and services.
On other hand, the CCEB model is entirely customer based. Sales are
generated thoroughly from customer satisfaction and loyalty.
Customer personalization and e-profiling is the part of the model for
customer persuasion and for customer trust and also to get a clear
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data of number of customers flying through the airlines. This helps in
solving the most prominent problem in such an industry; the
problem of loss faced due to empty or partially loaded flights.
Fig 3. CCEB process model (Jiang and Doukas, 2003).
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Agency business model for SIA:
Much of the company dealings are with agents for ticket sales. In
Australia, SIA has contracts with approximately all big and small
travel agencies including, Flight Centre, Best and Less, Base Sydney
and many other. These agencies incur commissions from SIA, and in
replacement these agencies enhance SIA ticket sales. The prices are
fixed by SIA (Expedia.com, 2009).
Merchandising model for SIA:
Such a model is seen in business between SIA and online travel sites.
Singapore airlines have partnerships with well-known travel sites like
Expedia.com, Orbitz.com, Travelocity.com, Priceline.com etc. in such
a model, the travel sites get inventory over wholesale tickets from
SIA, and then acquire right to fix their own prices (Expedia.com,
2009).
The purpose of the Agency and Merchandising model is to sell
maximum seats, and target fully filled flights.
Alliances:
Singapore airlines is one of the members of the Star Alliance, and
cover most of its Asian continent travelers. In the Alliance, the
company has to share its profits and losses with other members of
the alliance. Star alliance has benefitted SIA and other members by
building up an image to provide ease of travelling for the passengers
travelling in SIA. Membership in this Alliance benefits SIA’s
customers because they can accumulate frequent flyer mileage
whenever they travel in any of the member’s aircraft.
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Fig 4. The logo for Star Alliance
ANALYSIS OF THE MARKET MIX
Fig 5. The 4P marketing model (Source:
http://www.provenmodels.com/files/11a7a7dc5acdcb06f944722a23
b5f9de/four_principles_of_the_mark.gif)
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Product:
The core product of the company is the flights, but to sustain them,
the company is more dependent on delivering an efficient customer
service. The company website is one of those promises. The company
website is not only used to sell tickets, but also to deliver an
unforgotten customer service for a person sitting back home and
planning to fly with the company.
“As of March 2008, 97% of all tickets issued from the Airline’s sales
channels were e-tickets. All Singapore Airlines’ stations in the
network are e-ticket enabled. This means Singapore Airlines is on
track to achieve 100% e-ticketing by May 2008, ahead of IATA’s
global target of 1 June 2008 (SIA, 2007-2008).”
Thus, we see that most of the business for SIA comes from e-
business.
Branding:
Singapore airlines as such does not have any web marketing brand
name, but due to its reputation, ‘Singaporeair’, which are the
keywords for the website, have become its online brand. Moreover,
the company has maintained its Singapore Girl brand on its web
services as well. “The personalization of the Singapore Airlines brand
is the mixed male and female cabin crew, where especially the flight
stewardesses commonly referred to as Singapore Girls have become
very well-known (Roll, 2008). “Someone logging into the webpage
can see a Singapore girl image on both global as well national
webpage with a smile, wearing an elegant Malay sarong Kabaya. The
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brand has been well maintained past 32 years of the history of
Singapore airlines (Roll, 2008).
Singapore Airlines has maintained its position as one of the best-
known and best-performing brands in Asia, and remains one of the
few consistent performers in an industry where established brands
are struggling to stay alive
Analysis of the “6X brand” factor for SIA:
Fig 6. Analysis of SIA on basis of 6X model. 6X model is used to
analyses airline brands on basis of the value delivered by the brand
to the customers (Source: (Nigam, 2008) ) .
Promotion:
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The SIA homepage displays all the new and exclusive offers provided
by the Singapore airlines. These include cheaper flights between
specific rates, special packages and many more. Apart from this, the
webpage is equipped with a separate ‘Promotions’ option on the top
right corner (fig 7), that links you to all the promotional offers that
are available including, Singapore stopovers, local fare deals, events
etc. (fig8). Further, special offers are available for Kris flyer members
(frequent flyers), then can be viewed on the website.
Fig 7. ‘Promotions’ option on SIA homepage.
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Fig 8. Some recent promotions available through SIA.
Price:
As mentioned previously, Singapore airlines follow a global pricing
strategy. This means the prices available on the SIA link will be the
same elsewhere. The prices are updated regularly, ensuring fare
dealing with the customers. 97 percent ticket business for the
company operates through internet. Except for this, one can get the
best deals for hotels in Singapore or transit charges for stopovers in
Singapore. The prices vary from class to class. Economic class offers
cheapest airfares among all classes.
Place:
Singapore airlines have customized its website as per the location
user want to search in from. User in Australia can surf into Australian
SIA webpage or into American SIA webpage.
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ANALYSIS OF THE FINANIAL STATISTICS
The company website gives access to everybody to observe its
financial statement, operating cost, revenues, and other data. Just by
clicking onto “Company information” option at base of the webpage,
user is directed to other options including, ‘investor relations’ and
‘partners and benefits’ (fig 9). By clicking onto the investor relations,
you get access to analyses the company’s performance through its
annual, half yearly and quarterly report.
Fig 9. “About the company” page gives you an option to observe the
investor relations and the company’s financial statement.
Singapore airlines have been awarded as the best airlines for 2008
(http://www.worldairlineawards.com/). In the same year, the
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company revenues shot up to 6,954 million dollars in the first half of
year 2008, from revenue of 6,061 million dollars in the past year. The
overall profit hike in the same period was recorded around 36%
more than the first half of 2007, which is an outstanding figure for
any industry. On annual basis, the profit was 60% more than 2007.
Fig 10. The Financial statistics of Singapore airlines
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Figure 10 shows the cost the cost composition of Singapore airlines
for 2007/08 (not as a part of the Star Alliance). Thus, from the
diagram we can see that most the expenditure counts on
miscellaneous factors. The company has reduced costs in sectors like
airport handling as well as on fuel (fig 11). The fuel cost reduction
can be predicted due to addition of ‘Airbuses’ in its fleet that use
10% less fuel. Besides, dropping of the US dollar has also contributed
to this change.
Fig11. Shows the cost factor for SIA alone for year 2007/08.
SIA has performed outstandingly in increasing its operational profits.
This has been made possible by highly efficient team performance
and engineering skills, in addition to its innovation in all aspects of
the process. Figure 1o shows its extraordinary success in operation
management, recording a profit of 61% in year 2007/08(SIA,
2007/2008) .
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Singapore is the market leader in Stock exchanges around the globe.
It is registered in Nasdaq, SGX, S&P index (fig. 12) and many others.
From the fig11, it is clearly seen that the share market for the
company is at a downfall. This can be assumed with respect to the
economic meltdown.
Fig12. S&P index for Singapore airlines as reviewed on 15th
April,
2009.
If we review at companies Dividends for 2007/08, we see that overall
value per share has increased from 35cents from 2007 to 80c in
2008. Thus anybody with company shares seem to have earned
profit per share (SIA, 2007/2008).
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TARGET MARKET AND CUSTOMER BEHAVIOUR
As mentioned above, anybody who wants to fly, planning for a
vacation or want to have a good time is the potential target for
Singapore Airlines. The website has been intelligently design to
tempt its target market. The Singapore brand itself has been the
choice of the people. Using its Singapore Girl image on the
Webpages has allowed the company to generate value out of it, both
on line and offline.
The color contrast used in website on one hand proves handy to
fetch the sky lovers, while on other hand it sounds soothing for
everybody. Moreover, the site has been kept simple without much of
the graphics to make it easier for people with dialup and weak
internet connections. Besides this, website easy to be deciphered,
qualitative than quantitative, thus setting an example of a user-
friendly website. Thus, with such a website experience, the company
has targeted everybody around the globe, despite of their gender,
origin, budget and age.
The SIA website interface for customers and business investors have
become really popular means for Business to business as well as
business to customer interaction. The website has made it possible
for SIA to reach to everybody in any part of the world.
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The most widely faced problem that people face is the discomfort to
go to a travel agency and book tickets. It may sometimes take more
than one time visit to the agent. SIA website has tried to ease the
customer by providing one click ticket booking sitting in your home
or office.
The website has made it convenient for everybody to book tickets or
get any relevant information regarding airlines and prices. SIA
website is based on the fact that everybody on net expects quality,
speed, easy accessibility in a website. With a single click, anybody
from any part of the world can book tickets; provided he/she has
valid payment options and the details provided are authentic.
Moreover, the website has plotted all relevant options and
promotions on the company homepage. With such an ease, a
customer can easily derive the necessary information in no time.
Apart from bookings, you can get information regarding tourism in
Singapore, hotel deals, online check in. Recently, Singapore airlines
have provided an online facility of choosing your desirable seat.
For B2b purposes, website has made available entire company info,
finances, future planning, share info and many more. To enhance the
customer experience, the company has registered many navigation
key names including SIA, Singapore air, Singapore airlines, Airlines
Singapore and many more. Thus, even if you forget one, you can get
into the website through other available names.
Amazingly, the average length a customer stays on the website is 5.2
minutes/day (Alexa, 2009). Other company usually averages about a
couple of minutes to a few seconds.
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CUSTOMER RELATIONS
Usability:
According to Palmer, a good website should fulfil 4 requirements
(Hanson and Kalyanam, 2007):
Palmer’s Factors SIA Website response
1. Fast Response Time
Minimum graphics, No plug-in
required, easy uploading.
2. Effective navigation
Site map, search option.
Ticket booking option on
homepage.
3. Responsiveness to user
goals and desires
Quality over quantity,
Singapore Girl brand image on
homepage.
4. Higher interactivity
Site provides a link between
company and customer.
Regularly updated, motive of
the site well implemented.
Credibility:
The website is reliable, which is assured by the brand it represents.
The data on SIA website can be verified either by directly contacting
the company or with the airline agent in the city. Website is free
from ads except for the company ads. Website is free from any
errors, popup or any unwanted elements.
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Persuasion:
Rather than using pictures or animations, company has persuaded its
customers by the Singapore girl brand image with a smiling face on
the webpage, along with the user friendly, easy to use website.
Personalization:
Singapore airlines have achieved its success based on regular
customer feed backs and responding to those feed backs. Such a
personalization involves customization in terms customer
requirements, suggesting best deals, and regularly interacting with
the customers in terms of flight experience and customer enquiry
and complaint response. On basis of customer feedbacks and
customer to passenger conversion rate, SIA assembles this data and
uses it to differentiate its customers.
Mass customization:
SIA holds a reputation of being innovative and solely customer
focused airline service. Singapore airlines not only takes customer
feed backs from passengers travelling through Singapore airlines
plane, but also welcome feedbacks and suggestions from each and
every person visiting the website.
The most suitable type of mass customization in which SIA falls under
is transparent customization and adaptive customization. In
transparent type, SIA makes relevant changes/modification itself, to
ensure unforgettable customer experience at all stages from website
to travelling through SIA.
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For adaptive customization, SIA welcomes anybody to register in its
newsletter at first stage. The registered persons are sent regular
news about events, promotions from Singapore airlines. Second
stage of such customization is through Kris flyer membership option.
Third and final stage is collecting data from passengers in flight and
responding them accordingly. This data includes, the company
impression and whether the customer will prefer to travel with SIA
again (Ayob, 2005).
Kris flyers: These are considered the indirect company stakeholders.
Once registering as a member, company offers special discounts,
class upgradation and other offers. By doing so they make sure the
customer becomes loyal to the company. Also, the membership
allows the company to create customer profiles which helps it to
target the customers for future flights.
NAVIGATION AND TRAFFIC BUILDING
Direct navigation:
Singapore airlines have taken all the care to ease customers in
navigating the website for SIA webpage and navigating through the
website. A loyal Singapore airlines customer usually remembers the
web link or save it in his bookmarks. The webpage can be directly
accessed by typing the following url link “ www.singaporeair.com.”
The company has also license over the domain name
“www.singaporeairlines.com”, but since the former is the official
25. 25
web address, a person typing the later address is automatically
directed to the webpage with domain www.singaporeair.com.
Indirect or search engine navigation:
Google, yahoo and msn search engines provide the alternatives
route into the website. Singapore airline has registered various
keywords like Singaporeair, Singapore airlines, SIA, airline Singapore
and many others which directs the person on any of the search
engines to the Singapore airlines link. The figure given below(fig. 13)
shows the most common key words used on various search engines
in relation to Singapore airlines (Alexa, 2009).
Fig13. The most common keywords used for Singapore airlines on
net for past month. {Source: www.alexa.com }
In terms of traffic building, the Singapore airlines brand is self-
sufficient to pull people towards it. The popularity of the company
has made it the top priority on all search engines when fed in the
right key words. Figure below shows the results from Google and
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yahoo search engines (fig 14). SIA does not have any banner
advertisement except for the ones on its own website. Sources like
word of mouth and community websites prove a rich source for the
company to generate more and more web traffic.
Fig 14. Google and yahoo search results when searched for Singapore
airlines.
SIA web traffic can be analyzed using various online tools. Some of
these tools are given below.
1. Lexicon: Facebook has become an important source of
spreading word of mouth among people and communities.
Facebook has come over with a new tool called Lexicon which
keeps the track of the keywords used on Facebook walls. The
results showed that SIA has been frequently discussed from
2008 mid till March, 2009 (Facebook, 2009).
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Fig15. Lexicon results for the keyword SIA.
2. Twist: It’s the a web tool provided by “twitter.com .” it gives a
record of various key words used in twitter (Twitter, 2008).
Fig16. Twist results for keyword Singapore airlines.
3. Google trends: it’s similar to twist. It keeps key word record for
Google search engine (Google, 2008).
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Fig 17. Google trends result for Singapore airlines.
4. AdCenter Keyword Forecast- it’s a Microsoft tool, tracking the
keyword use, and generate graphs based on gender and age
(Adlabs, 2008).
Fig18: AdCenter keyword forecast for SIA. Shows a sudden peak in April 2007.
5. Alexa: it is the most widely used web index to analyzed web
traffic for different websites (Alexa, 2009).
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Fig19. Alexa results for SIA. Gives variety of important data related to
the webpage.
COMPARATIVE ANALYSIS
Singapore airlines face a tough head to head competition from other
airlines at all levels, including internet. Emirates are one such airline
company that competes with SIA for Asian market. By doing a
comparative analysis of websites of both companies we can make
out where SIA stands stronger and where it is weaker in terms of e-
business.
Website navigation:
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Unlike Singapore airlines, Emirates is a bit hard to get linked.
This is because only the correct keyword “Emirates” can take you to
the website www.emirates.com.
Website attractiveness:
SIA’s light blue shades showed a global approach in targeting
customers. On other hand, Emirates website is dusty brown colored
(Fig20) (Emirates, 2009). It gives a reflection of Arabic culture. Thus,
it can be predicted that Emirates primary target is the Middle East
customers. The webpage has only a fewer options on main page, so
anybody intending for a simple search needs to waste time exploring
the website. The good part of the website is that when anybody
searches for a flight, the web results show nearest flights as well in
terms of dates and timings, which make it easier for a customer to
select from the given list (fig21).
Fig20. An insight of the Emirates home page. (Source: (Emirates,
2009) )
31. 31
Fig21. Shows the results when a scheduled trip is entered into flight
search. Various other flights are also displayed, making easier for
customers to have options.
Web business model:
In addition to merchandising and agency model, Emirates also derive
income from its hotel and tourism business (Emirates group). Also, it
sponsors events like cricket and football matches.
Comparing the finances, we see that Singapore airlines have incurred
more profits than Emirates for 2007/08. The operating profits for
Emirates were just 35.5% as compared to 61% for SIA (fig22).
32. 32
Fig 22. The financial statistics of Emirates group. (Source: (Emirates,
2009) )
Traffic building:
Comparing Alexa results for Singaporeair and Emirates, we see that
on an average, a person stays just 3.5min/day on Emirates website as
compared to 5.2min/day for SIA (Alexa, 2009).
Twist results show a tremendous search for SIA, against a nil key
word search for Emirates (Twitter, 2008).
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SUGGESTIONS FOR IMPROVEMENT OF THE
WEBSITE
The company website is good enough, but can be made better by a
bit of additions.
Firstly, options like cargo and details such as baggage weight should
be highlighted on the front page. These are two big needs for a
person moving overseas, or for a vacation.
Secondly, everything that demands and it of detail is available in .pdf
format. So, if anybody wants to go through the detail, they have to
make sure they have adobe. This again poses problems for people
logging in from some exclusive internet locations like offices or cyber
café.
Thirdly, the company financial statement fails to give any relevant
detail about the expenditure on online ticket sales or on website
development and maintenance.
Fourthly, like Emirates, SIA can list the closest flight dates to the
selected flight date searched on web. This way, person can select
from any of the closest dates if his preferred flight is not available.
Lastly, students are one of the biggest customers for SIA; it is
expected from SIA to give special discounts and deals for students.
35. 35
CONCLUSION
SIA website seems has proven to be good in all analysis. It has been
successful in delivering the purpose and generating business for the
customers. The website is user friendly, easy to reach and access,
with a whole lot of other features for customer benefit. The
authenticity of the website is marked by the relevant company data
that can be accessed by anybody any time. Thus, the website with a
bit of modifications can help in achieving the company target of
100% e-ticket booking rate in coming years and also turn out to
engage more and more SIA customers into loyal customers by
respecting their expectations.
36. 36
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