Reference no: EM133041397

Case Study: Singapore International Airlines(SIA): Moving to a Flexi-Wage System during Volatile Times Questions

1. What impact the triple disasters like 9/11, SARS and the Second Gulf War (May 2003-2010) made on the global airline industry and on SIA and its strategic elements: long-haul, fullservice and premium pricing? What other changes in the global airline industry affected SIA? Which of these challenges were short term and long term in nature?

2. What impact the triple crises made on SIA's revenue and costs? Were these short-term or long-term impacts? Did the wage component revisions of SIA address lower demand for air travel in general and long-haul and premium-pricing strategy in particular?

3. Enumerate the policy responses that SIA deployed to deal with this difficult period from 1999-2003. Analyze these policy responses and comment on their implications to cost reduction and employee attraction, retention and morale?

4. How could the HR department of SIA design or propose a different model for base wage, SI and PSB that will address the issue of the airline industry's seasonality (<1 year) and cyclicality (2-3 years) while including a suitable reward to shareholders? What components of the HRM and Compensation and Benefits package of SIA that you would like to restructure or how to build higher flexibility in the airline's costs for the future to deal with the onslaught of low-cost carriers?

5. What were some of the negative effects of SIA's cost reduction and HR strategies? How could SIA have managed these effects better