Singapore Airline: Swot

Strengths

Diversified geographical spread mitigates business risks

Singapore Airlines has a diversified geographical spread. The group provides services such as

passenger transportation, logistics, and maintenance, repair, and overhaul (MRO) services. The

group operates across various regions such as East Asia, Europe, South West Pacific, West Asia,

Africa, and the Americas. Singapore Airlines operates flights to 64 cities worldwide, while subsidiary

Silk Air offers flights to 38 cities in 11 countries. During FY2011, the group carried a total of 16.6

million people across its network.

The group generates significant revenues from its airline operations across all the geographic regions

it operates in. In FY2011, East Asia, the largest geographic segment of the group, accounted for

51.9% of total airline revenues. This was followed by South West Pacific region, which accounted

for 17.1%; Europe, which accounted for 16.9%; the Americas region, which accounted for 8.3%;

and West Asia and Africa, which accounted for 5.9% of the overall revenues.

The diversified and evenly spread revenue base ensures that the group does not rely on any one

geographic market for a majority of its revenues, which substantially reduces the business risk for

the group.

Young aircraft fleet

The airline operations of the group include passenger and cargo air transportation. Singapore Airlines,

along with its wholly-owned subsidiary Silk Air, carries out the passenger air transportation operations.

The group's cargo air transportation is carried out by SIA Cargo. In FY2011, the group's operating

fleet consisted of 137 aircraft, including 126 passenger aircraft and 11 freighters. Singapore Airlines

and SilkAir operated 108 and 18 of the passenger aircraft, respectively.The group holds the youngest

fleet of aircraft. The passenger fleet operated by Singapore Airlines comprised 108 aircraft, with an

average age of six years and three months. SilkAir's fleet comprised 11 Airbus A320s and six Airbus

A319s, with an average age of five years and 11 months. The freighter fleet