IF you wonder why some of our competitiors have such an advantage consider that SQ have a vastly different perspective which focus extensively on efficiency and productivity. Just a few examples:
-SQ acknowledges that they aren't a low cost country and have recently setup a heavy maintenance facility in the Philipines. High technical content tasks will still be done in SIN but less complex work makes sense even for them to offshore.
- SQ's catering processes are so good they can upload staff/duty travel meals to any aircraft in Changi with 45mins notice. Needless to say the catering for customers is spot on.
- Unions and management work together to ensure staff are working efficently. As all employees are eligible for incentive pay, it is within both parties interests to weed out dead wood. This also extends to sick leave where SQ have their own medical centre where employees must obtain their medical certificates. The great Aussie sickie doesn't pass too easily over there.
- SIAEC's culture is based around continuous improvement. Check out their website on the cultural tab. They all do the training which is referred to as productivity training.
- Remember 1980 when the SIN prime minister threatened shut the airline down and restart from scratch? Didn't know that? Alan's little stunt was actually copied from Singapore, which at the time clearly articulated that a small, resource devoid nation couldn't be held to ransom by any group and must be the most efficient operation in all industries which it wished to compete. The threat has been rolled out several times since but SQ have a sustainable business model.
These guys have been doing process and productivity improvement for a long time and we are very far behind. They work with the unions and at times make tough decisions for the betterment of the country. Yes this means less jobs but it also maintains the highest level of sustainable wages. It is a simple choice, focus extensively on the maximizing productivity to meet the customer needs or let someone else do it for us.