Singapore Airlines 2004 - Managing Organisational Change In A Turbulent Environment

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.