Customer Service at Singapore Airlines

            
 
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Case Details:

Case Code : MKTG066
Case Length : 9 Pages
Period : 1972-2003
Pub Date : 2003
Teaching Note : Available
Organization : Singapore Airlines
Industry : Aviation
Countries : Singapore

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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.



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"The airline industry is, by its very nature, a service industry. In a free market the success or failure of an airline is largely dictated by the quality of service it provides."

- Joseph Pillay, Chairman SIA, 1989

"SIA is an airline that sets standards, is profitable and well managed, and takes a personal interest in its passengers."

- Mike Simon, Head of Communication, Emirates Airline, 1997

"SIA is a world-class airline and we respect it greatly. It is still very competitive. Other carriers are always interested in what SIA is doing."

- Ian Gay, Regional General Manager of Qantas-BA Alliance, 1997

Service Excellence

On October 31, 2000, a Singapore Airlines (SIA)'s SQ-006 Boeing 747 crashed in Taiwan. This was the first major accident in more than 28 years of the airline's operations.

81 passengers, of the 179 on board, were killed. The following day, SIA announced $25,000 in compensation to the families of those who had died, to help them cover immediate expenses.

When SIA's management discovered that it was pilot error that had caused the mishap, the airline offered an additional $400,000 per family - a figure almost five times the amount the company was liable to pay.

Marketing Management Case Studies | Case Study in Management, Operations, Strategies, Marketing Management, Case Studies

The Deputy Chairman and Chief Executive Officer, Cheong Choong Kong, said that the company took “full responsibility” for the accident. No airline had ever before accepted full responsibility or been so generous in compensation in the case of an accident.

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