Market Concentration

This paper endeavours to evaluate the level of market concentration exhibited by Singapore Airline and Malaysian Airline. Market dynamics in the airline industry have considerable had an important impact in the operation of airlines world over. This means that the efficiency of a particular airline is easily surmounted by factors like oil prices, tourism shrink, effects of terrorism and terrorism threats among other varied factors. Singapore Airline has expanded tremendously since its founding over fifty years ago and this success has elicited a lot of interest among scholars (Hans and Mehta 2009).

Study management has been identified as one of the leading factor into the success of the SIA. In terms of customer service, the airline’s number of passengers has increased significantly since early nineties showing an upward trend each year.

Singapore as a country has a huge marketing budget which bolsters tourism to the region. This in turn has resulted to positive externalities to the SIA. With the increased competition, there is great need for efficiency which is dependent on employee satisfaction which the Singapore has achieved through putting more attention on the flight crews (Chan 2000). The market concentration for SIA is relatively high in comparison to the Malaysian Airline which has in the recent past suffered from unprofitability.

Reference:

Hans H.,  and S. J. Mehta (2009) “Comparing spatial concentration and assessing relative market structure in air traffic” Journal of Air Transport Management Volume 15,( 4): 187-193

Chan D., (2000) “Singapore Airlines and the Malaysian Airline” Journal of Management Development 19 (6): 453 – 472