The air cargo product is an important source of revenue and differentiator for cargo airlines. Regardless of whether these are combination carriers of all-cargo specialists, airlines compete intensely for the airport to airport cargo service.

Singapore Airlines Cargo (SIA Cargo) competes intensely for market share in a highly competitive air cargo sector. SIA Cargo is a division that sits within Singapore Airlines. It operates a dedicated freighter fleet which the division complements with belly capacity on passenger flights that are operated by Singapore Airlines and its subsidiaries.

(a) Discuss how SIA Cargo distinguishes itself from competition in the current COVID-19 environment for the following market segments that it serves:

E-commerce logistics Perishables Pharmaceuticals

It is important that you contextualise your answer to SIA Cargo and not give

generic answers.

(b) Why do you think that it is essential for SIA Cargo to offer differentiated products

and services? Give reasons to support your answer.