Managerial Finance Essay

1642 Words7 Pages
Introduction The financial year 2012/2013 was a crucial year for Singapore International Airlines Ltd (SIA). They developed significantly with several initiatives to improve their core, fortifying their brand promise. They expanded their fleets at the same time reshuffled the fleet distribution, and also implemented a new reservation and booking system. On top of that, they introduced in-flight connectivity to 14 of their fleet, including their entire fleet of Airbus A340-500s. Besides the connectivity, they also upgraded their in-flight entertainment by debuting the first ever “Red Eye Collection Games” which included several iconic games that were previously only available on PlayStation, Windows and iPhone platforms (SIA, 2013). Another part of their initiatives is signing and expanding several codeshare agreements with different airlines and tourism board in effort of increasing their network connectivity. This enables their passengers to travel to even more destinations through their airline. The codeshare agreements parties included Scandinavian Airlines (SAS), Ethiopian Airlines, Shenzhen Airlines, Virgin America, Aegean Airlines, and EVA Air. (SIA, 2013) While they are making massive moves to improve their service and product, SIA is also making several changes internally. According to SIA Annual report (2012/13, p. 26), it was reported that a workforce productivity initiative, “Towards Optimal Productivity” was launched in December 2012. This initiative is productivity oriented, and aims to create a performance-based culture that acknowledges and rewards excellence in performance. However, the increasing rate of operating expenses doesn’t seem to deter SIA from progressing. Even though they had a lower operating profit of S$229 million, SIA managed to attain a net profit attributable to shareholders of S$378.9 million for the financial year ended

More about Managerial Finance Essay

Open Document