Singapore Airlines (SIA) has embarked on a project to evaluate its internal business processes and review its organization structure.Ê The project team, which began work earlier this month, will report to a steering committee headed by SIA’s CEO, Mr Chew Choon Seng.Ê

In describing the purpose of the exercise, Mr Chew said:Ê “SIA cannot afford to stand still in today’s rapidly changing aviation environment.Ê Managing costs alone is not enough.Ê It is timely for us to re-examine what we do, how we organise ourselves to perform business functions, and how we go about doing our jobs.Ê This project is more about relevance, efficiency and effectiveness than it is about the size of the organization.Ê We will involve and consult with staff on any changes that may affect them”.

L.E.K. Consulting, which has extensive airline industry experience, has been engaged after a rigorous selection process to bring an outside perspective to the review.Ê In addition to L.E.K. consultants, the project team includes senior personnel from both the front line and the support service areas of SIA.

Said Mr John Thomas, Director of L.E.K. Consulting and Head of its Air Transport Practice:Ê “SIA is once again demonstrating its leadership position in the global airline industry.Ê Many airlines are resorting to quick and easy fixes to respond to the current environment, but these will be insufficient in the long term.Ê SIA should be congratulated for conducting a thorough review of all its processes.Ê This will require more effort and commitment but will position the company to be much stronger.”

The review, which was conceived well before the outbreak of SARS and its severe impact on airlines in this region, is expected to take three months.Ê It will involve data collection and fact finding through discussions and workshops with senior staff across the Company.Ê At the end of the review, recommendations will be made to SIA management and, if accepted, will be followed up with implementation.

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