From 2001 - 2003, the Singaporean International Airlines (SIA) face triple catastrophes: the 9/11 terrorist attacks, SARS outbreak and the Iraq war, which forced it to reduce capacity, reform and restructure its wages. Having handled prices like a tight ship, SIA found it hard to negotiate wage restructuring and retrenchments with its unions. Managing in a firm business and regulatory environment, the SIA management found it challenging to tweak the seniority-based wage system, and migrate to a more adaptive and competitive compensation structure. With lower yield, high-price branding and intense rivalry from the full service global and low-cost carriers, the SIA management explored methods to balance its tactical components, gain flexibility and sustain price and wage competitiveness to bring in double-digit returns for its shareholders.
PUBLICATION DATE: September 28, 2009 PRODUCT #: NTU013-PDF-ENG
This is just an excerpt. This case is about STRATEGY about STRATEGY & EXECUTION
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