Singapore Airlines Part 1: evolution accelerated with new transformation office as profits decline
The Singapore Airlines Group (SIA) is entering a new phase in its evolution as it attempts to fully implement the numerous strategic initiatives embarked on over the last six years and identify further areas for potential change. The establishment of a transformation office does not necessarily represent a new direction, but is potentially the acceleration of an evolution that began when Goh Choon Phong took over as SIA Group CEO at the beginning of 2011.
Profits have consistently been well below historical levels the past six years and are now, again, on the downslope, and that includes a rare net loss for the quarter ending Mar-2017. The short term outlook is relatively bleak as market conditions are challenging and competition is intense.
However, there is hope of a brighter long term outlook once SIA completes its attempted transformation. SIA has already adapted to structural changes in the marketplace with several major strategic initiatives. It now must successfully complete the far more difficult task of fully pursuing the synergies and opportunities generated from the ongoing initiatives, and identify new areas of change and cost reductions.
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