Question 1 “The COVID-19 pandemic has had an unprecedented impact on the aviation industry, with the airline sector facing the greatest crisis in its history. As countries around the world imposed border controls and travel restrictions to prevent the spread of the virus, airlines faced a sudden and precipitous fall in the demand for air travel. In response, the SIA Group had to significantly reduce capacity to cut operating costs and ground a large part of its fleet. The impact on the Group has been exacerbated by the absence of a domestic market to fall back on.” Show how SIA managed to achieve strong cargo revenues despite the plunge in passenger revenues in the period FY2019/20 to FY2021/2022. You should highlight the key initiatives that SIA took to cushion the impact of COVID-19 on demand for air travel. Give reasons to support your answer.
Question 1 “The COVID-19 pandemic has had an unprecedented impact on the aviation industry, with the airline sector facing the greatest crisis in its history. As countries around the world imposed border controls and travel restrictions to prevent the spread of the virus, airlines faced a sudden and precipitous fall in the demand for air travel. In response, the SIA Group had to significantly reduce capacity to cut operating costs and ground a large part of its fleet. The impact on the Group has been exacerbated by the absence of a domestic market to fall back on.” Show how SIA managed to achieve strong cargo revenues despite the plunge in passenger revenues in the period FY2019/20 to FY2021/2022. You should highlight the key initiatives that SIA took to cushion the impact of COVID-19 on demand for air travel. Give reasons to support your answer.
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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Question 1
“The COVID-19 pandemic has had an unprecedented impact on the aviation industry, with the airline sector facing the greatest crisis in its history. As countries around the world imposed border controls and travel restrictions to prevent the spread of the virus, airlines faced a sudden and precipitous fall in the demand for air travel. In response, the SIA Group had to significantly reduce capacity to cut operating costs and ground a large part of its fleet. The impact on the Group has been exacerbated by the absence of a domestic market to fall back on.”
Show how SIA managed to achieve strong cargo revenues despite the plunge in passenger revenues in the period FY2019/20 to FY2021/2022. You should highlight the key initiatives that SIA took to cushion the impact of COVID-19 on demand for air travel. Give reasons to support your answer.
Question 2
Illustrate the effects of the pandemic on the future demand for air cargo. Give reasons to support your answer.
Questions (1) and (2) requires compiling and displaying of primary research data in the form of tables, charts or graphs from references below or from relevant sources.
Transcribed Image Text:Singapore Airlines
Passenger Operations
Passengers carried (thousand)
Revenue passenger-km (million)
Available seat-km (million)
Passenger load factor (%)
Passenger yield (cents/pkm)
Revenue per available seat-km (cents/ask)
Passenger unit cost (cents/ask)
Cargo Operations
Cargo and mail carried (million kg)
Cargo load (million tonne-km)
Gross capacity (million tonne-km)
Cargo load factor (%)
Cargo yield (cents/ltk)
Cargo unit cost (cents/ctk)
Overall Operations
Overall load (million tonne-km)
Overall capacity (million tonne-km)
Overall load factor (%)
Overall yield (cents/ltk)
Overall unit cost (cents/ctk)
2020/21
457
2,581.6
19,253.7
13.4
20.9
2.8
12.0
734.0
4,111.9
4,795.1
85.8
65.9
32.3
4,355.7
6,796.9
64.1
74.6
56.8
2019/20
20,906
104,134.6
127,165.8
81.9
10.0
8.2
8.0
1,205.0
6,389.2
10,778.2
59.3
30.5
16.4
16,039.3
23,745.0
67.5
77.0
50.5
+
+
+
+
+
+1
+
% Change
97.8
97.5
84.9
68.5
109.0
65.9
50.0
39.1
35.6
55.5
26.5
116.1
97.0
points
points
72.8
71.4
3.4 points
3.1
12.5
Transcribed Image Text:The Full Service Carrier
Passenger Operations
Passengers carried (thousand)
Revenue passenger-km (million)
Available seat-km (million)
Passenger load factor (%)
Passenger yield (cents/pkm)
Revenue per available seat-km (cents/ask)
Passenger unit cost (cents/ask)
Cargo Operations
Cargo and mail carried (million kg)
Cargo load (million tonne-km)
Gross capacity (million tonne-km)
Cargo load factor (%)
Cargo yield (cents/ltk)
Cargo unit cost (cents/ctk)
Overall Operations
Overall load (million tonne-km)
Overall capacity (million tonne-km)
Overall load factor (%)
Overall yield (cents/ltk)
Overall unit cost (cents/ctk)
2021/22
3,388
19,177.7
58,748.1
32.6
13.1
4.3
8.0
1,046.0
5,941.0
7,195.3
82.6
73.0
27.2
7,752.5
13,294.7
58.3
88.3
50.3
2020/21
514
2,669.0
19,493.0
13.7
21.1
2.9
12.5
734.0
4,111.9
4,795.1
85.8
65.9
32.3
4,363.5
6,821.0
64.0
75.0
58.2
+
+
+
+
+
+
+
+
+
+1+
% Change
559.1
618.5
201.4
18.9
37.9
48.3
36.0
42.5
44.5
50.1
3.2
10.8
15.8
77.7
94.9
5.7
17.7
13.6
points
points
points
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