Bargaining power of Suppliers
SIA has two major suppliers of aircraft i.e. Boeing and Airbus which are able to maintain. Currently SIA has 11 aircraft on order and should be increased to add more aircraft to reduce the rental of leased aircraft cost. Fuel cost is steadily 27% of the airline expenditure between 2016-2018 because of fuel hedging gain in financial year 2017/2018. These aircraft leased fee and fuel hedging profit is the major benefit to turn around to increase SIA profit.
In addition, SIA aircraft should replace some parts of fuel usage with the solar energy system to reduce dependence on fossil fuels and pollution free.
SIA engineering company is a Division of SIA for aircraft safety and servicing and productivity, efficiency, quality and more value-added services to create a strong level of Airline Industry’s supplier power since 1992.