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Singapore Airlines: Customer Service Innovation
October 18, 2011
I. Executive Summary
Nine days after the most tragic day in United States history, members of Singapore Airline’s management committee sat down to decide on ways to cut cost and whether it should cancel its implementation of the $100 millon new seatbeds in business class. September 11, 2011 had a devastating impact to the global economy, hitting the entire travel industry directly.
SIA was considered a world leader for its innovative customer service and the plan for the new seat project would only boast its reputation in the international market. But with increased competition, and the drop in airline travel due to the terrorist attacks, especially in business class, the primary concern of Singapore Airline’s management committee was how to slash costs. And this meant a cutback from their second to none customer service.
II. Marketing Issues
Since its inception in 1972, Singapore International Airlines (SIA) has prided themselves in providing outstanding customer service with a travel experience that is unrivaled. Now, unavoidable cut backs will threaten the level of service being provided.
• Management has to decide whether to cancel the implementation of lie-flat seat-beds in Raffles Class, the business class segment of SIA’s premium service. This product line was intended to be the best in the industry
• Senior executives of SIA are very concerns about the future of the organization , causing them to review the entire operation identifying where they can cut costs while preserving the company’s financial viability
• The company faces the challenge of implementing cutbacks through-out the company while maintaining their sterling reputation of high quality accommodations
• Staying ahead of increased competition
• SIA self promotion of being the industry’s leader in delivering to their...
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