"The COVID-19 pandemic has had an unprecedented impact on the aviation industry, with the airline sector facing the greatest crisis in its history. As countries around the world imposed border controls and travel restrictions to prevent the spread of the virus, airlines faced a sudden and precipitous fall in the demand for air travel. In response, the SIA Group had to significantly reduce capacity to cut operating costs and ground a large part of its fleet. The impact on the Group has been exacerbated by the absence of a domestic market to fall back on."

Source: Singapore Airlines Annual Report (FY2019/20 p.8)

Show how SIA managed to achieve strong cargo revenues despite the plunge in passenger revenues in the period FY2019/20 to FY2021/2022. You should highlight the key initiatives that SIA took to cushion the impact of COVID-19 on demand for air travel. Give reasons to support your answer.

Illustrate the effects of the pandemic on the future demand for air cargo. Give reasons to support

your answer.

To adequately support your answers to Questions (1) and (2), you are required to compile and display primary research data in the form of tables, charts or graphs from references below or from relevant sources.

Use your own words to demonstrate your understanding. Answers copied from course materials or external sources will receive no credit.

References

SIA Annual Report and Sustainability Report,

https://www.singaporeair.com/en_UK/us/about-us/information-for-investors/annual-report/

accessed on 4-Jan-2023

Boeing Commercial Market Outlook 2022-2041,

https://www.boeing.com/commercial/market/commercial-market-outlook/index.page

accessed on 4-Jan-2023