Premium airlines step up dogfight for business
Click HERE (ST Sat Feb 25 page B1)
The airline industry is facing stiff compeition...SIA esp is facing great pressure from Qatar airways...not to mention the rise of budget airlines.... To combat this, SIA is slashing prices....but it is also collborating with other airlines through code-sharing with major airlines (i.e. agreement where passangers from other airlines can transfer to SIA who have links to the city they are going...eg. to get to New York, a Malaysian Airlines passenger can fly MAS to Kuala Lumpur and then switch to SIA to get to New York..) and having a stake in buget airlines (e.g. SIA bought over Scoot and Tiger Air).
Cheaper tickets obviously benefit consumers, but note that it may not be advantageous to Business or their employees, because the employees may be exploited by being paid lower wages (so that the business can still afford to offer low prices to consumers and still make a profit), or the business may suffer from 'haemorrhage' i.e. internal bleeding....causing them to make huge losses and even become bankrupt.
For those who did the HCI Prelim competition compre AQ ....
Qn: Is competition always desirable? (Cam. 2016)
The airline industry is facing stiff compeition...SIA esp is facing great pressure from Qatar airways...not to mention the rise of budget airlines.... To combat this, SIA is slashing prices....but it is also collborating with other airlines through code-sharing with major airlines (i.e. agreement where passangers from other airlines can transfer to SIA who have links to the city they are going...eg. to get to New York, a Malaysian Airlines passenger can fly MAS to Kuala Lumpur and then switch to SIA to get to New York..) and having a stake in buget airlines (e.g. SIA bought over Scoot and Tiger Air).
Cheaper tickets obviously benefit consumers, but note that it may not be advantageous to Business or their employees, because the employees may be exploited by being paid lower wages (so that the business can still afford to offer low prices to consumers and still make a profit), or the business may suffer from 'haemorrhage' i.e. internal bleeding....causing them to make huge losses and even become bankrupt.
For those who did the HCI Prelim competition compre AQ ....
Qn: Is competition always desirable? (Cam. 2016)
posted by Dark Shadow | 2:15 PM
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