Singapore International Airlines – Moving to a Flexi-Wage System during Volatile Times Harvard Case Solution & Analysis

From 2001 to 2003, Singapore International Airlines (SIA) face a triple disaster: 9/11 terrorist attacks, the SARS epidemic and the war in Iraq, which has forced it to reduce power, reform and restructuring of their salary. Having managed expenses, as a discipline, SIA was difficult to agree on wage restructuring and redundancies with unions. Working in a tight regulatory and business environment, the management SIA found it difficult to set up on the basis of seniority wage system, and the transition to a more flexible and competitive compensation structure. Low yield, high cost of branding and intense competition from full-service global and low-cost carriers, SIA management to explore ways to balance their strategic elements to achieve flexibility and maintaining wage and price competitiveness to earn double-digit returns to its shareholders. "Hide
by DG Allampalli, Hesan Quazi Ahmad Source: CCP in Nanyang Tech University 21 pages. Publication Date: September 28, 2009. Prod. #: NTU013-PDF-ENG

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