the competition is growing every day in the airline industry SIA seems to be going
towards a new direction. It has taken few steps which are not linked to its
brand. These two steps have the customers of SIA question their service
excellence. Firstly it has announced that from January 20 2018 it will be
charging the customers to choose a seat while flying with the airline. Although
families who have children who are 12 and below will still get to choose their
seats for free. This decision only affects the economy class passengers as they
were able to choose seats for free before this. Other people who do not wish to
pay the extra charge to pick seats can choose from the leftover seats at the
check –in 48 hours earlier.
announcement made by SIA was that they will be charging a credit card fee on bookings.
But soon after the details of this charge were announced they published that
they would not go ahead with the credit card fee rule. These decisions made
everyone talk and it was debated if this will tarnish the reputation of the
brand built in decades.
current problems in the business include the fierce competition from premium
and low cost airlines, an oversupply of seats, less demand causing the air
fares to decline and high fuel costs.
came up with the low cost airline Scoot to tackle these very problems. But
their recent pricing and policy changes have made the differentiation between
silk air and Scoot hard. But as of the intense competition new ways of pricing
strategy is definitely a way to go to survive and keep up the company revenue.
If people are willing to pay to choose seats then this is economical. The
charging of extra seats is similar to charging extra for fares in seasons with
trying to maintain its revenue and reacting to the competition but they know
that they should do this carefully without harming the brand image that
requires forever to build. SIA has taken few steps and is moving gradually as to
not cross the line between repulsing the customers and nudging the customers to
pay more. SIA must further clarify the difference with their premium and budget
airline by putting more focus on consistent service and customer expectation.
should learn to survive the completion and sustain their quality altogether. (Kaur, 2018)