Agricultural Crisis in India

India’s Agriculture Crisis Indian is an agricultural country. Even while India’s industrial and services sectors are growing by leaps and bounds and where growth rate of agriculture as below 2% the fact remains that India still lives in villages. Over 50% of India’s population is supported by agriculture. Even industrial and services sectors are invariably entangled with the fortunes of agriculture due to various intricate forward and backward linkages. There have been ominous signs which showed that the Indian agriculture is in crisis.Unending chain of suicides by farmers in different parts of the country shows that everything is not well with agricultural sectors. Government of India is not sleeping over this crisis. National Commission on farmers has been constituted under the eminent Scientist Dr. M. S. Swami Nathan. He has recommended a comprehensive national policy for farmers to give an all round boost to the sector. However, it is sea sad state of affairs where government is busy in talking about superficial remedies instead of taking the concrete steps which is the need of the hour.More waivers of interests and rescheduling of loans do not address the real problem, which is’ why caused the farmers’ distress in the first place? ’ The main problem is the poor state of infrastructure in the country. For example, many farmers face a perennial problem due to poor rains in certain parts of the country and there is no proper irrigation to counter this factor. Most farmers are also not aware of the proper cropping patterns.The problem of faulty crop selection is also one of the major forces that drive farmers to poverty. Thus it is necessary to impart proper education to farmers and further develop infrastructure in rural areas. Developed India is possible with the attainment of growing, advancement of manufacturing and services sector. But prosperous India is possible only with healthy agricultural sector. The pride a nd confidence in farmers and farming needs to be restored. This alone can help agriculture grow like never before.

George Eliot: An Intrusive Author

An omniscient narrator and in addition a constantly interfering one ensures that the reader is well informed about re opinion and hardly is able to form an own one different from hers. However she pretends to look at her characters in a scientific way. The subtitle sounds like a title for a dissertation: ‘Study of Provincial Life' which calls for objectivity. Eliot very seldom directly states her personal opinion, like when she says: â€Å"For my part I am very sorry for him† (Elliot G. :3. 29) In contrast to the â€Å"strong [microscopic] lens applied to Mrs. Stepladder's matchmaking† (Elliot G. L . 6). The reason for this scientific approach might be a deep desire to morally lift up society and this way she tries to Influence humankind. Eliot had a secular understanding of morality. Newton sees it â€Å"as signs of an excessive moralist† (Newton K. M. ). However I do not agree with him, but believe that she wanted to spread and propagate her opinion and i mprove humankind as the intrusive narrator comments â€Å"We are all of us born into moral stupidity, taking the world as an udder to feed our supreme selves' (Elliot G. :2. 21 ).She is a child of Victorian writing and â€Å"places humans at the centre of 1 the cosmic stage, In the place of God (Department of English Studies. 2008:79). Her spectacles towards religion and how religious people should conduct them In cuisines Is shown In the contrasting characters of Mr. Caleb Garth and Mr. Bolstered. Bolstered is a devoutly religious banker in Middleware. â€Å"It was a principle with Mr. God† (Elliot 6. :2. 16). Although he does a lot of good things like the fever hospital, the narrator let him appear as a disagreeable hypocrite.During the course of the story the reader learns that he has a questionable past and even made his fortune through omission of telling the truth, by not admitting the existence of Will Ladies mother as the daughter of the widow he married. At the end he does not only try to rib Will Ladies and Legate, but also indirectly commits murder. Even so he still manages for his own mental sake to distort all proceedings as it were God's will although â€Å"he went through a great deal of spiritual conflict and inward argument in order to adjust his motives, and make clear to himself what God's glory required. (Elliot 6. :3. 32). However people were skeptical about him and did not trust him fully. Kayaked sees the root of his hypocrisy in his continual striving for self- deception (Kayaked G. 2003). In addition Bolstered was less concerned with applied eligibility but with a â€Å"spiritual kind of rescue [which] was a genuine need with him. 0 He was simply a man whose desires had been stronger than his theoretic beliefs, and who had gradually explained the gratification of his desires into satisfactory agreement with those beliefs† (Elliot 6. 4. 61). The narrator's gives us her moral opinion right after this passage â€Å"This implicit reasoning is essentially nor more peculiar to evangelical belief than the use of wide phrases for narrow motives is peculiar to Englishmen† and â€Å"there is no general doctrine which is not capable of dating out our morality if unchecked by the deep-seated habit of direct fellow-feeling with individual fellow-men† (Elliot 6. :4. 65). Balustrade's preference is also expressed in the choice of 2 Mr. Tyke who â€Å"is a real Gospel preacher† (Elliot G. 4. 18) in opposition to Mr. Freebooter because he does not teach his opinion â€Å"which he calls spiritual religion† (Elliot 6. :4. 17). In the case of Bolstered I believe George Eliot wants to teach the moral lesson: the higher you climb, the father you fall'. As Mr. Balustrade's aim was to be â€Å"an eminent Christian† (Elliot 6. :5. 52) his disgrace was all the worth at the end. The opposite of Mr. Bolstered what concerns business and religiosity is Mr. Garth and his family. Mr. Garth doe s not constantly talk about religion but lives it.He helps where he can even if he puts himself and his family in trouble and has a most forgiving sole. He lends the money to Fred, who actually should have more money than himself and is neither angry nor regrets his decision when he is told that Fred cannot pay it back, although this meaner that his own son has to sacrifice his education. He is an example of altruism and applied religiosity. He is described as an honest, discreet ad hard irking man who expects everyone around him to act the same way.In contrast to Mr. Bolstered George Elliot promotes through Mr. Garth a religion of man, not of God and an understanding of religion which is based on the fellowship amongst men rather than the personal satisfaction of his ego. Humanity is the centre of Elite's belief and she stresses the importance of men taking responsibility for their actions viewed sympathetic identification?altruism?as the antidote to the enervating effects of egois m or self-interest which political economists had argued' (Christianson F. ). For me the family of Mr. Garth is an impressing example of how Christianity should be lived and applied.Mr. Garth sees fulfillment in his work and enjoys the improvement of conditions without thinking about payment. He wants to improve society with his work and is satisfied if he sees progress and that he has done a good job. It is important for him â€Å"to have the 3 chance of getting a bit of the country into good fettle, as they say, and putting men into the right way with their farming, and getting a bit of good contriving and solid building done?that those who are living and those who come after will be the better or† (Elliot 6. :4. 40).He loves his work, but despises business and therefore he often does not charge for his work. As a result the family is poor, but happy. Others are drinking or gambling but his bad habit â€Å"is to work without being paid† (Elliot 6. :3. 24). Caleb find s delight in the sight of people working and listening to their sounds, which â€Å"had acted on him as poetry without the aid of the poets, had made a philosophy for him without the aid of philosophers, a religion without the aid of theology' (Elliot G. : 3. 24). Mr. Garth and his family show the worth of hard work, good sense, and practical kindness.They demonstrate the virtue of doing the necessary work that lies at hand, rather than planning to save the world (Kayaked G. 2003). They also do not care about ranks and what people say. â€Å"He thought very well of all ranks, but he would not himself have liked to be of any rank in which he had not such close contact with ‘business† (Elliot 6. :3. 24). In contrary Mr. Bolstered cares about rank and buys Featheriness property to rise in rank. Rank and class is also great important to Fred and a constant issue to Will Ladies.Fred Vinci and Will Ladies is another contrasting couple in similar situations. Although Eliot do es not seem to condemn rank absolutely, she views it from several perspectives. On one hand there is the whole Vinci family who is extremely status conscious. Fred is constantly aware of his rank which makes him a self-indulged, â€Å"pleasure seeking† (Elliot 6. :3. 23) and idle man who thinks he has a right to prosperity without work and effort. Fred was brought up in a way he never had to think about money and also not to think about a way he should earn it. The children had no standard of economy' (Elliot G. :3. 23). Rank was of great 4 importance and â€Å"even when Caleb Garth was prosperous, the Evinces were on undiscerning terms with him and his wife, for there were nice distinctions of rank in Middleware; and though old manufacturers could not any more than dukes be connected with none but equals, they were conscious of an inherent social superiority which was defined with great nicety in practice, though hardly expressible enjoying the sense of belonging to no clas s† (Elliot 6. :5. 46). Will finds his position to be liberating.He doesn't have to follow the same social rules as everyone else. If he wants to lie on the rug instead of sitting bolt upright in a chair, he lies on the rug. Ladies and Fred both were sponsored by other people. Fred by his father and Ladies by Mr. Cubans, but Eliot shows, that there are different ways to handle this situation. Ladies works for Mr. Brooke and never considers whether this is appropriate for him or not. Others, like Mr. Cheetah, criticism his conduct. Fred instead thinks work is below his standard and not appropriate.In addition he lives beyond his meaner and has no problem in indenting himself. He believes he â€Å"had a right to be free from anything disagreeable† (Elliot 6. :3. 23) and winced under the idea of being looked down upon as wanting funds for small debts. However 160 pounds were not really small debts, but Fred could ask nobody else than Mr. Garth who was the â€Å"poorest and the kindest† (Elliot 6. :3. 23). Finally Fred is pulled out of his situation through the Garth family. Elite's secular understanding of morality includes the belief in the possibility of moral growth and responsibility of men for their actions.Still this growth is only possible with the support of the society. This is the reason why her individuals are necessarily part of society and those who cut themselves off from society fail. Eliot is most concerned with the improvement of society (Kayaked G. 2003). Fred is a good example that even though he has false tendencies he is able 5 to change, although this is only possible with the help of others, namely Mary and Mr. Garth. Mr. Garth always believed in Fed and was sure â€Å"the lad would turn out well† (Elliot 6. :3. 3), however he thinks that Fred â€Å"hasn't got a principle in him to make him more afraid of doing the wrong thing by others than of getting his own toes pinched† (Elliot 6. :3. 25). In contrary La dies has honor and principle although he is in a similar situation and depends on money of others. In Will Ladies Eliot created a character that shows not only pride but also perseverance. Eliot conveys her understanding of morality through a realistic presentation. She does this to make her readers believe that no matter how hard the circumstances are, man can act morally (Kayaked G. 2003).Ladies neither accepts Balustrade's money nor the payment from Mr. Cubans when he did not agree with him any longer and he is proud of the fact that his mother kept clear of the shady dealings of her father's business, and his grandmother, who was willing to sacrifice her family fortune to marry the man she Ovid. Both Fred and Ladies show that the individual has a choice in his own life. This way Eliot questions the issue of determinism and free will. She conceives that man's life and choice are basically determined, but man is still responsible for his choices and acts as he retains the faculty of free will (Kayaked G. 003). Otherwise it would not have been possible for Ladies to marry Throated in spite of the financial pressures of Caboose's codicil and the prejudices of the Middleware citizens regarding his mixed descent with his â€Å"dangerously mixed blood† (Elliot 6. :5. 46). Eliot obviously does not agree with these kinds of prejudices and stereotypes as she little children† and nice to older ladies (Elliot G. :5. 46). 6 Elite's attitude towards women and marriage are another interesting point. Women play a very important role in Middleware and are a driving force behind the men.Also Mr. Garth knows that and insists that Fred â€Å"loves Mary and a true love for a good woman is a great thing, 0 it shapes many rough fellow' (Elliot 6. :6. 56). On the other side Mary is aware of men's needs and knows that â€Å"husbands are an inferior class of men, who require keeping in order† (Elliot 6. :8. 77). Also Mrs.. Garth supports her husband by stressin g out that the right thinking inside of a person is what he has to follow no matter what other people say about you. Mimi must have it inside you that your plan is right and that plan you follow' (Elliot 6. :4. 40).Both Ladies and Fred are strongly influenced and directed by women. In Fried's case Marry is the one who leads him on the right pass. She would not marry him, because she sees that they cannot make a life together unless he finds his true place in the world. The church is for Mary obviously not the true place as she thinks he would be a ridiculous clergyman. Mary is not blinded by class or rank, but sees in Fred an â€Å"idle frivolous creature† (Elliot 6. :3. 25). She shows more pride than he has. â€Å"l should be ashamed to say that I loved a man who must always be hanging on others, and reckoning on what they would do for him† (Elliot 6. 3. 25). Therefore Mary tries to make a responsible man out of Fred, one that is acting and not only talking so he can be respected like her father is. Also Throated is responsible for Will's career. Trochee's great quality is her ability to influence people by the strength of her idealism, and this has ruefully affected Ladies: â€Å"But that simplicity of hers, holding up an ideal for others in her believing conception of them, was one of the great powers of her womanhood. And it had from the first acted strongly on Will Ladies 0, he felt that in her mind he had found his highest estimate (Elliot G. 8. 77). Without the influence of Throated, we are made to feel, Ladies would have remained a rootless aesthete. However 7 Will's love for Throated is giving and altruistic. He wants to protect her and lift her up. He â€Å"always seemed to see more in what she said than herself saw' (Elliot 6. 4. 37). In Middleware women have great power and influence on their husbands. However Eliot promotes their subordinate position which is expressed in the duty of the wives to support and follow their husbands n o matter what happens. Mrs..Bolstered bears her husband and chooses to live with less comfort and stay with him although he has to leave Middleware in disgrace. She acts differently from her niece Roseland who is not willing to share the hardship of her husband, but is shown as an eccentric and selfish character in contrast to Throated who submissively accepts her role as Mr. f her characters conveys her attitude either as good or as bad example. Determinism and free will as well as the humanistic and applied side of religion are her major concerns.

Jesus-ChristI am statement Research Paper Example | Topics and Well Written Essays - 1750 words

Jesus-ChristI am statement - Research Paper Example Although the Old Testament manifestly described the characteristics accredited to Christ’s sacred personality, yet a large number of the Jews of Nazareth turned against him out of sheer feelings of jealousy, and thus refused to recognize him as the promised Messiah . Instead of acknowledging the qualities and character of this great holy personality, the people raised unconditional opposition against Jesus for worldly gains, pecuniary benefits and temporary socioeconomic statuses. They not only refuted to comply with the bright teachings Jesus had brought along with him, but also proved themselves as his arch enemies in such a manner that they were determined to assassinate the holy personality in order to sabotage the spread of holy light in the world. Although, they claimed to be the people of God and having command as well as right to interpret and explain the Mosaic laws described in the Ten Commandments revealed on Moses from the Lord, yet they were actually the transgres sors and had gone astray from the right path of glory and righteousness. They used to cite Scriptures for their own purposes, and put aside all the noble teachings in their conduct and mannerism. It is therefore Christ had declared them as the hypocrites, who had separated mercy and justice while making judgments and announcing decisions in the light of Mosaic laws. (Matt, 23, II: 23-24) He was pelted with stones and was tormented and tortured, but his foot never wavered in the face of hardships. â€Å"The Son of Man did not come to be served, but to serve, and to give his life as a ransom for many.† (Matthew 20:28) Somehow, the sacred message was to get popularized in every corner of the universe. It is therefore the Lord saved Jesus from becoming prey to the nefarious designs articulated by the king and masses of the era for the elimination of the teachings presented by Jesus and his noble message from the very face of the world. Book of John throws light on the same, and t he verses under analysis point out to the Jesus’ last days of his First Arrival on the earth. In the Book of John 7-8, Jesus Christ not only appears to be aware of the hatred and malice the Jews maintained in their minds and hearts for him, but also looks well-acquainted with the very conspiracy well-knitted against his life by the people of Nazareth. He expressively reveals the ill intentions of his enemies, and warns them that they could not reach his destination even devising conspiracies and intrigues against him due to the very reality that they were unaware of Jesus’ journey and destination (in the high heavens). He clearly reveals that his arrival and departure is completely dependent of the will of God (John 7:29), and hence he has been appointed by Him to convey to the people the noble message of God. It is therefore he is not afraid of any threat or challenge arose by the people of Nazareth against Christ. In the verse under-analysis, Jesus rightly declares h imself as the light of the world, which would illuminate all parts and corners of the world by grace of his noble teachings, extreme tolerance, mercy, love, compassion and kindness he always displayed while entering into encounters and interactions with others. His mercy was not confined to one stratum only; on the contrary, he showed great love and meekness

Smith & Ricardo vs. Malthus, Bentham, Senior, J.S. Mill and Say Essay

Smith & Ricardo vs. Malthus, Bentham, Senior, J.S. Mill and Say - Essay Example It leads to increased productivity and consequently greater output, high wages and income per capita thus opulence of nations (Ekelund & Hebert 129). Natural harmony exists in economy due to the mechanism of the ‘invisible hand’ which drives individuals’ self-interests to promote greater good hence there is no need for government intervention. Competition in the market is vital and money is just for making trade more flexible. David Ricardo (1772-1823) in his Principles of political economy and taxation (1817) was concerned with distribution of wealth within Smith’s analytical framework. Like Smith he advocated for competition without restraint. He also acknowledged existence of use value and exchange value but concentrated on the natural exchange value which is determined by scarcity and labor cost of production (Bhatia, 116). Since rent is not part of the cost (its value in excess of real production) and capital is past labor, this leaves labor cost to determine relative value of commodities (Ekelund & Hebert 156). However, different types of labor are adjusted in market by relative rates of rewards and wages gravitate towards subsistence. If more than subsistence then population (labor supply) increases depressing wages and vice versa (p. 120). Thomas Robert Malthus (1766-1834) focus was on population. Unlike Ricardo, he saw an imbalance between population and means of subsistence hence ineffective demand. For Malthus population increased in geometrical progression while means of subsistence increased in arithmetic progression hence population was bound to outstrip supply of means of subsistence if not checked (Bhatia 135). Population growth thus needed to be checked through preventive and positive checks such as delayed marriage, celibacy, moral restraint, floods, droughts, famine, disease and war. For Smith and Ricardo, demand for labor determined rate of population increase and was always kept

Reflective Report Essay Example | Topics and Well Written Essays - 2500 words

Reflective Report - Essay Example When it comes to being â€Å"dependable†, it is always my best interest to create a remarkable atmosphere within myself in order for others to generate among themselves a certain level of trust in me. I have not thought about it that others could actually see it in me, but based on understanding of my generic competencies, I am capable of initiating a positive response to important things that somebody might entrust to me. That is why I totally agree with the three specific statements I received from the three respondents who told me something about my being dependable. What matters at this point is the fact that there is a positive consistency of what I thought about myself and what others could tell about how I could be relied on certain things. The problem with this is that these respondents might have just seen me based on the standpoint of generic competencies or areas of effectiveness, which I presume common to all people especially with high level of â€Å"dependabilit y†. After all, they still have many things to learn about me. People with high level of dependability are consistently doing the same level of things the way I do. There are no other special things they might observe at this point just the way I do. This is how I view how others might have tried to take a look at my dependability and they based it on the common standard that organizations usually employ to look out the best for others. However, in my case, my being dependable does not have any consistent link with my performance in an organization. This is really who I am. This is my lifestyle. Everything about my dependability does not need to be associated with my performance in an organization. It is just really part of being me that I just do not like not to guarantee others a certain level of trust on my potential or worth as a person. It is integral part of my personality which boils down to the kind of behavior I might have carried at this moment. So at this point, I co uld say my being dependable is unique due to the point that it is tantamount of who I am at present. It is just a bit encouraging that people around me could actually see outside who I am inside. However, I just do not have a remarkable proof that what they actually see in me is who really I am inside, which could substantially tell something more about my uniqueness as a person. However, due to the statements I received from the target respondents, I have finally validated the uniqueness and innermost part of my being as one reliable enough to be entrusted with things in an organization. However, as of now I could clearly say that with the change of my actual behavior, my uniqueness as a person would eventually banish. After all, being dependable is something intrinsic that I found could not be influenced by an organization as I consider it enough as a lifestyle, which changes my perspectives and actual behavior. The other emergent theme that I come to formulate about the feedback I received from my respondent is â€Å"integrity†. The three feedbacks associated with this theme are all consistently pointing to the idea that I am true to my words, which positively builds a positive impression for my identity. As I considered myself dependable, integrity perhaps is strongly associated with dependability as this remarkably

Individual Project 5 Research Paper Example | Topics and Well Written Essays - 1250 words

Individual Project 5 - Research Paper Example The strategies for high-performance contracts include separating people from the problem, emphasizing on shared interests, as well as providing more options. Negotiation is a process via which two persons or institutions attempt to attain an agreement with respect to issues that are associated with different objectives, interest and values (Lock, 2013). The attainment of a common ground is associated with the same beliefs, objectives and values. The shared common goal normally persuades the two individuals or groups to attain the shared goals. The ability of the parties to a negotiation to make a decision normally differentiates a negotiation process from arbitration which demands an arbitrator. In most circumstances, businesses attempt to experience a win-win situation with a contractor while negotiating on various contracts; this ensures a long term relationship between the parties to a given contract. Mutual trust between the contracting the parties is normally associated with the past relationship with respect to business aspects or in the negotiation process. In the event that a mutual trust does exist between the contracting parties, Zou (2011) provides that there is a need to build the trust. Trust normally exists in the event that the other party is likely to offer the promises that are pledged; additionally, the negotiator should be viewed as individual who is not likely to lead to surprises. Surprises that are likely to occur may include certain demands that were not mentioned in the original agreement; they also include threats or change of a party position as far as the original position is concerned. The establishment of a mutual trust is likely to see both parties reach an agreement that is associated with a win-win situation among the parties given that one party is careful not to hurt the other party. The parties can create a positive relationship by paying attention to common goals and values;

Discrimination and disparity Essay Example | Topics and Well Written Essays - 250 words

Discrimination and disparity - Essay Example This research will begin with the statement that discrimination refers to the act of treating someone in a less favorable way either because of some specific reasons or because of the race, gender, or class of that person. This essay discusses that discrimination injects a sense of dejectedness in a society and destroys the concept of equality. The basic understanding underlining the case study is that disparity, on the other hand, refers to the differences that exist between different groups of people. As Rivera states, â€Å"Disparity is believed by many to be a product of discrimination and starts with the process of arrest all the way to the sentencing structures†. The present research has identified that in the criminal justice system of a country, discrimination is a serious issue. The author has rightly presented that people having low social status usually face more trials as compared to the people having good financial status. This paper illustrates that this is a pur e example of discrimination. The researcher states that, on the other hand, a high figure of people of the same race held in a jail does not indicate that there is a high level of discrimination in the criminal justice system of that country.   Rather it indicates the group differences that exist between every two groups living in a society. This refers to group disparity. People belonging to one particular group are likely to do more crimes because of their way of living.

Immigration, visa, I 20, I94, staying in status, ICE, SEVP, SEVIS Essay

Immigration, visa, I 20, I94, staying in status, ICE, SEVP, SEVIS - Essay Example The Immigration and Customs Enforcement (ICE) is one of the bodies that ensure the security of the nation by making sure all those who enter the nation will not endanger the country in any aspect, in any form or manner. The Student and Exchange Visitor Program (SEVP) assist the Department of Homeland Security (DHS) and Department of State to monitor non-immigrant students. To further this role, the Student and Exchange Visitor Information System (SEVIS) is used to store information about the arrival and departure of non-immigrant students, exchange visitors and their dependents. Studying in the United States is both a privilege and an opportunity however, one has to stay within the rules and regulations contained in the contract, where an individual binds himself with the country as a visitor. The most important of which is staying in status. Before the student’s visa expires, he should leave the country as agreed upon otherwise, the student will definitely suffer a great loss. Such record will affect one’s further applications for travel to the country in the

The Continuum From Legitimacy to Fraud Research Paper - 2

The Continuum From Legitimacy to Fraud - Research Paper Example The main Research methods include quantitative, mixed methods, and qualitative approaches methods. The criteria of choosing a research method depend on the decisions on questions to be answered and data type required (Stangor, 2011). A research considers various aspects like the person who will collect data, place of data collection and data the researcher seeks to collect. Other factors considered in the selection criteria are; methodology to be used and data analysis type. The method of research selected should answer the questions and be in line with the methodology (Cozby, 2009). Quantitative research involves deductive and pivots in a hypothesis that is recognized prior to the research. Qualitative research involves inductive and needs no hypothesis formulation for the research. A mixed research method comprises the use of both quantitative and qualitative method (Zikmund, Babin, Carr, & Griffin, 2010). Quantitative Research Method This research considers a general case then mov es towards a specific case. This method considers a probable cause of a problem and anticipates validating its effect. The cause and effect factor depends on the strength of variables relationship. If the variables are strongly related, the relationship of cause and effect becomes highly probable (Cozby, 2009). An example of this method is a research to evaluate the differences in use of websites carts of shopping and online consumer purchasing behavior. General Cause The general cause involves the purchasing habit of internet customers who put commodities in the shopping carts that are online. However, these shoppers do not complete several purchases. Analysing this behavior varies from the purchasing habit of online shoppers who never use shopping carts to hold commodities they never purchase. Specific Effect The specific effect comprises of internet shoppers who routinely put commodities in their online shopping carts but do not accomplish the purchase, and are 75% more probable to revisit the same websites late complete the purchase within a week. Research Finding Holding the contents in the internet-shopping cart for 10 days when a shopper goes offline, prior to finishing a purchase, is favorable business and implies a high possibility of potential purchases by that customer on the same website. Hypothesis This is a guess in a statement or a query form, which a research attempts to answer. A quantitative research has two-hypotheses. Null hypothesis (Ho) is where a researcher does not anticipate the guess to be true. In the end of the research, the researcher will scrutinize the data collected in order to either acknowledge or reject the negative hypothesis. Testing a hypothesis is the confirmation of the assumption or the hypothesis. In the alternative hypothesis, (Ha), a researcher supposes the guess is true. When a researcher rejects the null hypothesis, it implies that the alternative hypothesis might be accepted. This means likelihood that the data er ror that would make the Ha not true is reasonably minute by scientific standards. There is no absolute hypothesis testing in any quantitative research (Stangor, 2011). From the example, on the online study: Ho = Online buyer who puts commodities in the cart prior to leaving the website is more probable to revisit and complete a transaction than online buyers who do not put commodities in their cart, but also return to the website.  

Learning experience of international students Essay

Learning experience of international students - Essay Example This paper expounds how foundation courses in the UK enhance the learning experience of International students. Learning in the UK is conducted through the English language. According to Cormie (2009: n.p). approximately 6000 different languages are spoken all over the world today. This shows that some of the students may be from non-English speaking backgrounds. It is also important to note that English may also be the second language of some of the students. In this regard, foundation courses present International students with a chance to improve their English language skills. One of the requirements for University entry in the UK is command of the English language. Foundation courses are specially designed to prepare International students to achieve these requirements (University of Bristol, 2015: A4). University of Bristol (2015: A4) explicates that their International foundation program helps students "Improve their general academic skills of taking notes from lectures, learn to deal with academic reading texts, and improve their writing skills". These skills provides International students with proficiency and dexterity necessary in starting a University degree program. In other words, students acquaint themselves with note taking, reading, and writing as these skills are incorporated in the culture of learning institutions in the UK. Foundational courses also gives International students an opportunity to familiarize themselves with the new culture as well as the environment in general before joining University (Horvath and Medgyes, 2014: 12). University courses comprises of interactions and discussions with people from different cultural backgrounds. It is therefore imperative to understand and comprehend how to interact with people from other cultures particularly in new countries as some spoken or written opinions may be considered taboo in those cultures. Learning environments refers to physical environment or surroundings. As an example,

Economics, Effects of Specialization Essay Example for Free

Economics, Effects of Specialization Essay Specialization basically means when an individual or businesses produce a narrow range of products in simple words, when a person or business focuses on producing one type of product because they are good in producing that product. International exchange allows for specialization, which is when one producer produces the good that comes at the least cost of production and opportunity to him or her and then trades for those goods that come at a higher production or opportunity to him or her. The law of comparative advantage explains how people can gain from trade and specialization. Comparative advantage is defined as the ability to produce a good at a lower opportunity cost than others can produce it. Therefore, specializing gives that country a comparative advantage over others. specialization also leads to economic interdependence which is when producers in one nation depend on other to provide good and services that they do not produce. eres an example : lets say China produces 500 fish and 200 cheese and Canada produces 200 fish and 500 cheese , China will stop making cheese and focus on producing more fish and Canada will stop making fish and focus more on producing cheese , in the end , they will end up trading , this is economic interdepedence when another country relies on another country for a product or service. Not only does it lead to mutual gains by allowing different countries to specialize in the production of those things they do best, but it also allows them to import goods that foreign producers are willing to supply at a lower cost than domestic producers. Resources and such differ from country to country and give some countries an advantage to producing some goods over others and prove to be more profitable and advantageous to all. By allowing for international trade, countries can specialize in those goods that they can produce most economically and them offer them to consumers at a cheaper, more affordable, and more economical price. Absolute advantage is a situation in which a nation as a result of its previous experience can produce more of a good, with the same amount of resources, than another nation. till , this doesnt mean that just because one country has an absolute advantage that the countries cannot gain from international trade. countries can still gain as long as relative production costs differ. 3 reasons why International trade is necessary International trade allows countries to learn from each other and take in new ideas. international trade is needed between countries is because resources that country needs are not available everywhere. international trade is necessary is that it reduces the risk for one economy.

Evolution of Respiratory Systems in Animals

Evolution of Respiratory Systems in Animals Jonathan Codd Respiration in animals is a necessity as it allows the exchange of respiratory gases that are required for survival. There are huge variations in the designs of respiratory systems and each has evolved due to selective pressures in environments, such as food and territory. The evolution of species is driven in part by limited resources and the adaptations in which these can be exploited. This report will describe the evolution from aquatic environments to terrestrial environments as part of this movement, of animals onto land, created a cause for the fast development of newly designed systems in order to support air breathing as oppose to gaining oxygen from water using gills. Lungfish first developed lungs, and the ability to breathe air instead of water, whilst living in aquatic environments and the appearance of air-breathing in fish is the major foundation for terrestrialization. Each species has different requirements due to different techniques of movement and feeding, for exam ple, and respiratory systems are required to support the lifestyle of each species in order to exchange the maximum amount of gas possible. The ability to develop additional processes able to assist in respiration has ensured that the oxygen demands of each animal is met. The respiratory system of animals is crucial for the life as it allows the exchange of gases between an organism and the environment. These respiratory systems have been forced to continually develop new designs depending on new evolutionary pressures from changing environments. Many species have evolved due to the availability of new niches and unexploited resources and thus have been forced to develop supporting mechanisms of respiration. This report examines the evolution of respiration from aquatic environments to the terrestrialization of land and the rapid expansion of respiratory methods that soon followed. The evolution of lungs from gills in the Sarcopterygii lineage has allowed the tetrapod transition onto land and is responsible for the ability to eventually develop fully terrestrial species that are able to respire solely air. Each system must be complementary to the requirements of the species and environment in order to meet the aerobic demands and some species are able to undergo various methods of respiration in order to undergo sufficient rates of gaseous exchange. Each method has been specifically developed for the niche, and uncinate processes have formed in order to assist with ensuring respiration can be as efficient as possible. Introduction The evolution of air breathing was vital in the transition of life from aquatic to terrestrial environments and, therefore the rapid evolution of the animal kingdoms physiology and anatomy in order to exploit all available niches (Graham, 1997). The development of air breathing would not, however, have taken place if the atmospheric composition had not altered during the Phanerozoic era, around 550 million years ago, when the concentration of oxygen showed an increase, likely due to the appearance of large vascular land plants (Ra et al., 2007). The ozone layer was thought to have formed around two billion years ago (Walker, 1978) and is essential for allowing the survival of life on earth by preventing high-energy ultra-violet radiation from entering the earths atmosphere (Parson, 2003). The movement onto land has allowed for a huge expansion in the amount of available niches and therefore caused a rapid radiation in the body plans of animals and a variety of respiratory mechanisms to evolve in support (Ra et al., 2007)    The Importance of Pulmonary Surfactant Lungs differ throughout the animal kingdom as they have evolved for the specific niche of each species; nevertheless one thing they all commonly include is a gas-liquid interface which allows surface tension to arise, causing complications (Daniels and Orgeig, 2003). The pulmonary surfactant system prevents the collapse of respiratory surfaces in lungs due to unequal pressures arising from differently sized alveoli, as well as maintaining a reduced resistance to air flow and improving lung compliance (Daniels and Orgeig, 2003). There is overwhelming evidence that there was a single evolutionary origin of the surfactant system, thought to be from the epithelial cells lining the pharynx (Daniels et al., 2004), due to Surfactant Protein-A (SP-A) or like-structures being present in all the major vertebrate groups; implying that it is an essential pre-requisite for lung evolution (Sullivan et al., 1998). Surfactant has been studied in swim bladders, which have now been shown to be a homol og of the lung, with the original principal function being an anti-adhesive but also with involvement in preventing water from entering the swim bladders or lungs (Daniels et al., 2004) Pulmonary surfactant composition is primarily lipids (around 90%) most of which are phospholipids, and the remaining ten percent is comprised of proteins. (Veldhuizen et al., 1998). There were found to be four types of surfactant proteins (SPs): A, B, C and D which all have varying properties and roles within the surfactant system; SP-B and SP-C were both found to be highly involved in the surface activity due to hydrophobic properties and SP-D is hydrophilic and part of the collectin family (Wà ¼stneck et al., 2005). Dipalmitoylphosphatidylcholine (DPPC) is the most hydrophobic lipid component and therefore DPPC-rich monolayers are able to sit packed tightly together, ensuring the exclusion of water, however they are not well suited for the expansion of the lungs and so are alternated with mixed monolayers when necessary (Wà ¼stneck et al., 2005). Respiration in Fish Fish evolution has allowed both water and air breathing to arise as a means of gas exchange and as these vary greatly in properties, such as density and the oxygen concentration, the mechanistic pumps must also show great diversity to meet the requirements for effective respiration (Brainerd and Ferry-Graham, 2005). Fish that breathe in water use gills which are highly evolved organs that provide large surface areas and thin barriers between the fishs blood and the aquatic environment, thus allowing for a high rate of gaseous diffusion (Evans et al., 2005). Whilst they show properties for gaseous exchange the gills are multifunctional organs which are also responsible for the loss of ions and nitrogenous waste, therefore fish must also have regulatory mechanisms allowing them to successfully osmoregulate (Evans et al., 2005). As fish are continually moving they all require a buccal pressure pump as well as a suction pump, most likely the operculum, working in tandem to allow for expansion and compression to move water across the gills; the suction pump is more prominent in some species such as the Osteichthyes compared to the Chondrichthyes (Ap and La, 2001). A counter-current method is established due to water flowing in the opposite direction to the movement of blood, with the secondary lamell ae being the site of gaseous exchange (Shelton and Randall, 1962). The counter-current mechanism is required as the content of dissolved oxygen is less in water than it would be in the atmosphere (Ibanez et al., 2008) and thus allows high concentrations of gas to be exchanged, whereas a con-current mechanism would too quickly reach an equilibrium and efficient extraction of oxygen would cease (Brainerd and Ferry-Graham, 2005). There are two hypothesis surrounding the origin of air breathing in fish, one suggests that lungs arose only once at the base of the Osteichthyes, whereas opposing arguments have recently suggested that lungs evolved on at least two separate occasions and instead developed in both the Actinopterygii and Sarcopterygii (Brainerd, 1994). Some air breathing fish, such as the Actinopterygian, are able to modify their buccal pump to create a four-pump mechanism, using two expiration and compression cycles, in which expired air is first pumped into the lungs before being compressed out into the atmosphere (Perry et al., 2001). When empty fresh air is inhaled via the expansion of the buccal cavity before finally being compressed into the lungs, this is shown to fully expand and compress and so there is little mixing of expired and fresh air (Perry et al., 2001). Not all air breathing fish show this mechanism as some Dipnoi, lungfish for example, will still ventilate using the primitive two-stroke mechanism (Burggren and Johansen, 1986) and even though there can be mixing of expired and fresh air in the lungs, there has been no significant evidence to suggest that this is any less effective than the four-stroke method as breathing accessories allows the increase in volume of inhaled gases (Brainerd, 1994). Terrestrialisation Lungs were an obvious pre-requisite for the transition onto land but there were many other anatomical and physiological adaptations necessary for tetrapods before they were able to fully terrestrialise and survive free of an aquatic environment (Daeschler et al., 2006). In the late Devonian, terrestralisation occurred as a means of exploring previously unexploited niches and resources through the evolution of tetrapods via the Sarcopterygian lineage, whose habitats were most likely mud-flats neighbouring the waters edge (Graham and Lee, 2004). Tetrapods share common features with both modern day land vertebrates and fishes and the discovery of Tiktaalik rosaea allowed the transitional form to be studied in detail to provide evidence on the necessary adaptations required for terrestrialisation (Sarfati, 2007). The skeleton of Tiktaalik was found to be a lot stronger than that of its sarcopterygii-like ancestors and would have allowed it to support its own body weight in substrate, it also showed a longer snout and loss of bony gill covering but still maintained fish-like qualities, such as well developed gill arches and fin rays which implies that it still spent a majority of time in an aquatic environment (Ahlberg and Clack, 2006). Tetrapod digits were seen to arise from the pectoral fins of Sarcopterygii, although there was seen to be a pattern there remained a few anomalies throughout the development (Sarfati, 2007). When discovered Tiktaalik was a hugely important addition to the fossil record and bridged the gap between fish and tetrapods after confirmation from phylogenetic studies placed it on the Sarcopterygian to tetrapod lineage (Sarfati, 2007). The further anatomical and physiological changes that continued after Tiktaalik were responsible for allowing tetrapods to adopt new mechanisms of feeding and locomotion that were required for survival on land and thus was responsible for a huge step in the necessary radiation of respiratory systems (Clack, 2006). Respiration in Amphibians and Non-Avian Reptiles Amphibians are able to breathe by utilising cutaneous methods, using their skin to exchange gases, which could also suggest that it was an important method of respiration used during the transition onto land (Gans, 1970). [JC1]Some amphibians, that have a large enough surface area to volume ratio, such as certain species of salamanders, will rely solely on cutaneous respiration for gaseous exchange due to an absence of lungs (Feder and Burggren, 1985). Cutaneous respiration is based on an infinite pool of oxygen, through air or water mediums, in what is known as a co-current or open flow and is a passive process as there is a lack of inspiratory or expiratory flow (Burggren and Moallf, 1984). Whilst a few amphibians will rely only on cutaneous respiration, most will just use it as an accessory breathing mechanisms and will have other primary methods of respiration (Brainerd and Owerkowicz, 2006). As a means of understanding the primitive breathing in early tetrapods and air breathing fish, other species of salamanders have been studied. It was found that they use a method similar to the two-stroke mechanism previously described in Dipnoi; in which during inspiration they will expand their buccal cavity in order to create a negative pressure required to draw in fresh air, therefore supporting claims that this is most likely the primite mechanism of respiration seen in Sarcopterygii and early tetrapods (Brainerd et al., 1993). Whilst most air breathers will create a negative pressure to cause air to move into the lungs, frogs and some air breathing fish, are known as positive pressure breathers as they use their buccal chamber to fill with air which they will then actively force into the lungs (Jones, 1982). In frogs this system consists of two valves; the paired nares, which remain open for the majority of the time with the function of connecting the buccal cavity to the external air and the glottal valve which spends the majority of the time closed and is only opened when air is entering or leaving the lungs from the buccal chamber (Jones, 1982). This breathing cycle is most likely to begin with expiration as breath-holding was found to most likely occur during the end of the buccal inspiration (Jones, 1982). Reptiles, are believed to be the first group of animals to involve movements of the ribs in the assisting with lung ventilation (Nielsen, 1961). Aspiration breathing is thought to have arison in amniotes, which includes reptiles and mammals, most of which have tried to eliminate their reliance on costal aspiration by evolving accessory breathing methods to aid in respiration (Brainerd and Owerkowicz, 2006). It is evident that aspiration breathing evolved after the buccal pump mechanisms, however, there have been no transitional forms intermediate between the two found which suggests that aspiration breathing developed abruptly and amniotes soon after lost the ability to utilise a buccal cavity (Brainerd, 1999). Studies in lepidosaurs, established that most have an unidivided pleural cavity, which is also present in amphibians and air breathing fish, suggesting that this is the primitive form and that seperation occurred only later on in evolutionary history (Brainerd, 1999). Crocodiles display many unique features compared to the rest of the reptile group as they use a hepatic pistol to ventilate their lungs by utlising a muscle known as the diaphragmaticus, which is not homologous with any other diaphragmatic muscle (Brainerd, 1999). The liver divides the thoracoabdominal cavity and the diaphragmaticus muscle, orinating from the pelvis and caudal gastralia, is responsible for the expansion of the thoracic cavity by retracting the liver; this creates a negative pressure inside and fresh air is forced in, with inspiration containing an intermediate pause (Brainerd and Owerkowicz, 2006). The multicameral chamber seen in crocdiles allows high aerobic demands to be met, which is vital for their survival, and is only found in few other reptile species (Perry, 1988). Respiration in Avian Reptiles Avian reptiles, more commonly known as birds, use a lung-air sac respiratory system which allows cross-current flow, where air and blood are flowing in the same direction to one another (Scheid and Piiper, 1972). The avian respiratory system is small and compact and the thin barriers are thought to be advantageous during flight but not necessary as the mammalian bat respiratory system is dissimilar but still successful for long migratory flights (Schmidt-Nielsen, 1997). Uncinate processes, which alternate depending on the niche of each bird, are fundamental in the avian respiratory system and assist with the movement of the ribs and sternum, allowing for both inspiration and expiration to take place (Codd et al., 2008). The air sacs are used only for ventilation, with gaseous exchanges taking place as air is passed through the parabronchi, which are thin tubes with openings at each end allowing the uni-directional flow of air, which was found to be unique to avian respiration (Scheid, 1979). The parabronchi are packed into a dense hexagonal array with gas exchange tissue, known as the mantle, surrounding the lumen of each; composing a networks of both blood and air capillaries (Brown et al., 1997). The cross-current system found in birds requires these blood and air capillaries to be in close proximity and arranged parallel to one another in order for diffusion to take place; with the uni-directional flow being studied and found to be of no additional advantage to this cross-current system (Scheid, 1979). There are a total of two inspiratory and expiratory cycles that must occur for the complete flow of air through the lungs (Schmidt-Nielsen, 1997). During the first inspiration air flow is split from the trachea to the caudally grouped air sacs or the dorsobronchi, where it will enter the parabronchi and the gas that remained in the lungs from the previous inspiration is forced cranially (Brown et al., 1997). When the first expiration takes place the air remaining in the caudal air sacs moves through the parabronchi, where gas exchange takes place, and another inspiration forces the air into the cranial air sacs (Brown et al., 1997). To exit the respiratory system, the second expiration forces the air to flow from the cranial air sacs through the ventrobronchi and exits using the trachea (Reece et al., 2015). The trachea involved in avian respiration is made up of complete cartilagenous rings and is found to be around 4.5 times the size of mammalian homologues which allows larger tidal volumes and increased compliance within the system (Reece et al., 2015). There have been no valves discovered in the avian respiratory system and therefore to maintain unidirectional air flow it has been suggested that aerodynamics methods, such as jet flow, must be existing in the system during inspiration, and increased resistance through the intrapulmonary bronchus is used during expiratory flow (Scheid, 1979). Respiration in Mammals The respiratory system in mammals is completely separated from the abdominal cavity and the diaphragm and ribs are both crucial in the mechanism of respiration (Keith, 1905). The muscles of the ribs, such as the intercostals, are required for the expansion of the ribcage, which allows the neccesary generating of negative pressure caused by increased the lung volume for aspiration breathing (Perry et al., 2010). The diaphragm is responsible for the control of inspiration as it is able to contract and elongate the thoracic cavity which creates a negative pressure, thus drawing air into the lungs (Loh et al., 1977). The pericardium is closely bound to the lungs and is connected to the central tendon of the diaphragm allowing the vital pairing of both (Keith, 1905). The elevation of the rib cage, which allows further increase in the available volume for external air to enter the lungs, is also under diaphragmattic control (Loh et al., 1977). The mammalian lung is highly complex and involves lots of branching in order to increase surface area from the trachea, which then splits in series into the primary bronchi, secondary bronchi, tertiary bronchi and finally the alveoli. There are around 3108 alveolar air sacs which comprise of thin membranes to increase the surface area and allow the ease of diffusion of gases between them and the capillaries (Hoppensteadt and Peskin, 2002). Inspiration and expiration cycling allows the constant renewal of air into and out of the lungs and provides mammalian species with sufficient oxygen to meet the aerobic demands (Weibel, 1984). Respiration in Insects There is a wide variety of mechanisms adopted by insects for respiration due to the huge variation in available niches. All will utilise a network of air-filled vessels, which are known as tracheae and tracheoles, and can be as small as 1ÃŽÂ ¼m in diameter, with most terminating nearby to the mitochondria of cells (Miller, 1966). The tracheal system at rest is filled with fluid which is thought to be actively absorbed by the permeable inner tracheal wall when required for breathing, using active transport or secretion from cells (Wigglesworth, 1953). Experiments have demonstrated that during tracheal compression, which is controlled by an increased pressure inside the exoskeleton, the tracheae noticeably shrink in diameter to aid in air convection and increased diffusion of oxygen into the tissues due to a high pressure build up (Westneat et al., 2003). Spiracles are required at the external and internal barrier in the tracheael system to allow external air through the skin; and previous experiments have found if these are blocked then the insect cannot survive as respiration will cease (Fraenkel and Herford, 1938). Interneurons are essential as they are responsible for the pairing of spiracle movement with ventilation by communicating with the spiracles motor neurones (Miller, 1966). The discontinuous gas exchange cycles present in insects will typically occur in three stages, beginning the closed-spiracle phase where only small amounts of external gas exchange are able to take place (Lighton, 1996). A fluttering-spiracle phase permits oxygen uptake for the diffusion of gases into the tracheael tissues and finally an open-spiracle phase concludes the cycle whilst allowing the release of accumulated carbon dioxide (Lighton, 1996). Ventilation is under endogenously controlled rhythms produced by the central nervous system which allows aerobic respiration rates in flight muscles to be so successful that they can be challenged only by certain species of bacteria (Miller, 1966). During insect respiration air is sucked into the tracheal system by creating negative alterations in internal pressure using the pumping of hemolymph by the heart or the contracting of abdominal muscles, others can include passive diffusion or autoventilation (Westneat et al., 2003). Respiration in Cetaceans Cetaceans have evolved a much more unusual respiratory system to any terrestrial mammal, as the nasal passageway has moved to a more dorsal position to allow the exclusion of water from the system and ease of breathing as they surface (Thomas and Kastelein, 1991). A nasal plug, made up of nasal plug muscle, connective tissue and adipose tissue, is responsible for the seperation of the internal and external environment and is retracted anteriolaterally for respiration by bilaterally paired nasal plug muscles (Thomas and Kastelein, 1991). The lung size of cetaceans varies depending on the depth of the dives undertaken, due to the variety of pressures causing differing extents of thoracic collapse (Piscitelli et al., 2010). It was found that the lung size will be reduced in cetaceans that undergo deeper dives and there will be an increase in the thoracic mobility. The lungs of larger whales were found to possess extremely heavy myoelastic bundles in the air sacs and alvolar membranes that were not found in much smaller cetacea (Wislocki, 1942). Conclusion The evolution of respiratory systems has been an extremely specific process that has showed both gradual, and rapid changes throughout the many lineages of the animal kingdom in order to encorporate universal requirements, as well as accessory breathing mechanisms (Weibel, 1984). Respiration is a vital life process required for survival and it is essential that gas exchange is as efficient as possible in order to allow high oxygen-demanding aerobic activities to take place when necessary (Perry, 1988). Each respiratory system may have a variety of additional mechanisms, uncinate processes, that assist in the breathing mechanics to enable the ease of transporting larger volumes of air within each system (Codd et al., 2008). The pulmonary surfactant system is of great importance, as it allows the successful existance of such mechanisms by preventing collapse of respiratory surfaces, as well as aiding them by increasing lung compliance and reducing the resistance to air flow (Daniels and Orgeig, 2003). The evolution of efficient respiratory systems, when paired with other necessary adaptations, has provided a foundation for more complex body systems to develop to allow the utilisation of previously unexploited resources and niches, thus providing organisms advantages in the animal kingdom (Graham, 1997). Bibliography Ahlberg, P.E., Clack, J.A., 2006. Palaeontology: A firm step from water to land. Nature 440, 747-749. doi:10.1038/440747a Ap, S., La, F.-G., 2001. Ventilatory modes and mechanics of the hedgehog skate (Leucoraja erinacea): testing the continuous flow model. J. Exp. Biol. 204, 1577-1587. Brainerd, E.L., 1999. New perspectives on the evolution of lung ventilation mechanisms in vertebrates. Exp. Biol. Online 4, 1-28. doi:10.1007/s00898-999-0002-1 Brainerd, E.L., 1994. The Evolution of Lung-Gill Bimodal Breathing and the Homology of Vertebrate Respiratory Pumps. Integr. Comp. Biol. 34, 289-299. doi:10.1093/icb/34.2.289 Brainerd, E.L., Ditelberg, J.S., Bramble, D.M., 1993. Lung ventilation in salamanders and the evolution of vertebrate air-breathing mechanisms. Biol. J. Linn. Soc. 49, 163-183. doi:10.1111/j.1095-8312.1993.tb00896.x Brainerd, E.L., Ferry-Graham, L.A., 2005. Mechanics of Respiratory Pumps, in: Physiology, B.-F. (Ed.), Fish Biomechanics. Academic Press, pp. 1-28. doi:10.1016/S1546-5098(05)23001-7 Brainerd, E.L., Owerkowicz, T., 2006. Functional morphology and evolution of aspiration breathing in tetrapods. Respir. Physiol. Neurobiol., Frontiers in Comparative Physiology II: Respiratory Rhythm, Pattern and Responses to Environmental Change 154, 73-88. doi:10.1016/j.resp.2006.06.003 Brown, R.E., Brain, J.D., Wang, N., 1997. The avian respiratory system: a unique model for studies of respiratory toxicosis and for monitoring air quality. Environ. Health Perspect. 105, 188-200. Burggren, W., Moallf, R., 1984. Active regulation of cutaneous exchange by capillary recruitment in amphibians: Experimental evidence and a revised model for skin respiration. Respir. Physiol. 55, 379-392. doi:10.1016/0034-5687(84)90059-8 Burggren, W.W., Johansen, K., 1986. Circulation and respiration in lungfishes (dipnoi). J. Morphol. 190, 217-236. doi:10.1002/jmor.1051900415 Clack, J.A., 2006. The emergence of early tetrapods. Palaeogeogr. Palaeoclimatol. Palaeoecol. 232, 167-189. doi:10.1016/j.palaeo.2005.07.019 Codd, J.R., Manning, P.L., Norell, M.A., Perry, S.F., 2008. Avian-like breathing mechanics in maniraptoran dinosaurs. Proc. R. Soc. Lond. B Biol. Sci. 275, 157-161. doi:10.1098/rspb.2007.1233 Daeschler, E.B., Shubin, N.H., Jenkins, F.A., 2006. A Devonian tetrapod-like fish and the evolution of the tetrapod body plan. 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History and Analysis of Singapore International Airlines

History and Analysis of Singapore International Airlines Introduction SIA traced its roots to an organization called Malayan Airways that offered its first commercial passenger service in May 1947. Today, SIA is Singapores best-known company, and rated consistently as Asias most admired company(Asian Business, 1997,p. 24). Its smiling, willowy cabin attendant, outfitted in tight batik sarong kebaya designed by renowned fashion house Pierre Balmain, and marketed as the Singapore Girl, is now a well-known international service icon. In 1994, the year she celebrated her 21st birthday, the Singapore Girl became the first commercial figure to be displayed at the famed Madame Tussauds Museum in London. Madame Tussauds had unveiled the waxwork of the SIAs global marketing icon that year to reflect the ever-growing popularity of international travel. SIA is widely reckoned by those in the airline industry, travellers as well as its competitors, as one of the very best airlines in the world, judging from the numerous industry awards it has won. According to the Business Traveller Asia Pacific, SIA has become the standard by which all other international airlines are judged (Business Traveller Asia Pacific, 1997a, p. 3). SIA also consistently leads the industry in profitability and rides through rough and turbulent times much better than most of its rivals. It has had an impressive and continuous profit streak since it took to the skies some 25 years ago; a track record almost unheard of in the brutally cyclical airline industry (Asian Business Review, 1996, p. 34). On 1 May 1997, SIA turned 50 and celebrated its Golden Jubilee Anniversary in grand style. It was a far cry from its humble beginnings in 1947 when it started life as part of Malayan Airways. The International Airline Industry The airline industry had traditionally remained fragmented primarily due to the limiting effects of national and international regulations. Enforced in the form of landing rights and associated competitive constraints, even large airline companies had only been able to develop dominance over their own regional markets at best. With the exception of the United States, dominant national flag carriers, typically owned by the national governments, had remained the only international representatives of their countries. However, the competitive dynamics in this industry had started to change dramatically in recent years. Deregulation, privatization, and the advent of new technologies have started to reshape the industry on a global level. The United States deregulated its airlines in 1978 and had since witnessed heightened competition and aggressive jockeying for market position. Europe entered the throes of a similar escalation of competition following the creation of the European Union a nd the disbanding of country-specific barriers to free market competition among air carriers. In Asia, deregulation occurred in fits and starts with some major regions allowing greater access to foreign carriers. For example, India, a regional market of some significance, announced that it would privatize its state-owned airline company. It had already allowed its traditionally domestic airline to compete against its international air carrier in many of the regional markets comprising neighboring countries. Japan made major strides in deregulation after selling off its shares in the then state-owned Japan Airlines and permitted All Nippon Airways to serve international markets. In Latin America, many of the smaller national flag carriers were privatized. Countries such as Mexico and Argentina infused significant levels of market competition in their airline industries by removing anti-competitive barriers and privatizing their national airlines Mexicana and Aerolineas Argentinas. The trend seemed certain to gain further momentum and open skies might be closer to reality than ever before. The major European nations were already in discussions with the United States to implement an open Trans-Atlantic market area where landing rights would be determined by free market forces rather than regulatory policy. Open skies agreements are bilateral agreements between countries that agree to provide landing and take-off facilities for air carriers originating in any of the partner countries. Such an agreement does not have the typical restrictions related to landing rights that are determined on a city-pair basis. For example, Singapore and the U.S. had signed an open skies agreement under which a Singapore carrier could travel to any destinati on city in the U.S. and vice versa. The twin trends of privatization and deregulation resulted in an increasingly global approach to strategic positioning in this industry. Although most large carriers still retained their regional dominance, many forged alliances with other leading carriers to offer seamless services across wider geographic areas. These alliances made most of the larger airline companies de facto global organizations. With increasing geographic reach and decreasing regulatory barriers, many of the regions were witnessing acute competition often in the form of fare wars. Consumers in general became much more price sensitive than ever before. In attempting to keep up with the competition, many carriers upgraded their service offerings contributing to declining yields in a price-conscious market. Chronic excess capacity worldwide only exacerbated this situation. Not surprisingly, there was a decline in passenger revenue yield in all geographic regions and the airlines were fighting an uphill battle to ex tract higher levels of efficiencies from their operating structures. For example, passenger yield dropped by 1.9% and 2.5% in 1998 and 1999, respectively, in Europe and 0.8% and 1.5% in North America during the same period. The drop was far more geographic region-wise summary of key trends in passenger traffic, growth potential, and major players follows. (Source: Annual Reports and HSBC Research.) Asia-Pacific Region By 1999, traffic in the Asian region had become quite important to the overall success of the air transportation industry. Collectively, this region represented 24% of worldwide revenue passenger kilometers. The ICAO estimated that the Asia-Pacific region had grown annually by 9.7% over the last ten years. This upward trend was expected to continue albeit at slightly lower levels, moderating between 6%-7% until 2001. Trans-Pacific traffic was expected to grow at 6.6% and intra-Asia-Pacific traffic by 5%. Some analysts predicted that Asia would play a key role in over half of the top twenty international markets ranked in terms of revenue passenger miles by 2002 The aviation market in Asia, while similar to Europe of the pre-EU era, did indeed have some dominant players. Japan Airlines and Singapore Airlines were the clear leaders and together accounted for 40% of the market share. The second tier included Cathay Pacific, Thai, and Korean Air, which comprised 33% of the market. Asian carriers in general had significantly lower operating costs compared to their American and European counterparts. For example, in 1998, according to Warburg, Dillon Read, personnel costs for North American carriers accounted for approximately 32% of total revenues. For European carriers, it was 21%. However, for the Asia-Pacific carriers, it was only 17%. Most of the Asian carriers also had much higher labor productivity levels and lower unit labor costs than airlines in North America or Europe. This location-specific advantage was a primary reason why carriers from other regions were setting up significant hub operations in the Asia-Pacific region. While the y ields for many carriers such as China Airlines, Korean Air, Thai, and Malaysian, the second and third tier competitors, were much lower than international levels, the top tier carriers such as Japan Airlines, and Singapore Airlines had yields consistent with their North American and European counterparts. The avenues for differentiating airline services in this region were shrinking. The elite carriers who had built a reputation for superlative service such as Singapore Airlines were now facing stiff competition from carriers such as Thai Airways and Cathay Pacific who had geared to deliver similar services. Thus, differentiation was becoming much more demanding and difficult to sustain Singapore International Airlines: Country and Company History and Culture of Singapore Singapore had witnessed bountiful growth and become the envy of many neighboring countries as it entered the new 21st century. Its per capita GNP increased by a phenomenal 75% between 1990 and 1999 and currently stood at S$39,724. This meteoric rise could be directly traced to Mr. Lee Kuan Yew, the most powerful Prime Minister in Singapores history. He was able to tap the patriotic spirit of his people when he announced his intent to develop Singapore to rival Switzerland in terms of standard of living. His emphasis on superior education standards, a controlled labor environment, significant outlays for training and development, all helped to enhance the quality of human capital. At the end of 1999, Singapore boasted a literacy rate of 93%, among the highest in the region. Singapores Confucian work ethic dovetailed very well with his ambitions. It emphasized responsibilities over rights and placed enormous value on attributes such as hospitality, caring and service. As a result of th ese efforts, Singapore, today ranked among the best countries in terms of human capital and was often rated among the worlds friendliest places to do business. Rising standards of living meant higher wages .Coupled with the small size of the local population and a very low unemployment rate (3.2% in 1998), the availability of labor was seen as a potential stumbling block in the drive toward further growth. Many of the larger companies already depended on a sizable number of expatriates from neighboring countries as well as the West to staff positions. A staunch believer in free trade and internally driven growth, Mr. Yew made it clear from the start that the world does not owe Singapore a living. For example, in the air transportation sector, Mr. Yews government declared that SIA, although the national carrier, would not receive any subsidies, protection, financial assistance, or economic benefits from the government. It would have to sink or swim based on its own resources and ingenuity. Singapore literally adopted a free skies approach whereby foreign flag carriers from other countries were welcome to serve the city-state without any restrictions. This meant heightened competition for SIA right from the start. However, the free market philosophy also resulted in sharper rates of market growth. For example, roughly 35% of the equity base of Singapore was foreign in origin, and foreign investors owned 17% of all companies in the country, both testaments to the successful programs that attracted foreign capital and commerce to the island nation. The tourism industry played a very significant role in the overall development of the country. Handicapped by the small size and the lack of natural resources, Singapore had to rely on service industries such as tourism and finance to generate growth. It had always enjoyed an enviable status as an important geographic hub dating back to the pre-British Colonization era. During its history as a British colony, Singapore provided an important stop-off point for travelers from Europe and Britain to the outlying colonies of Australia and New Zealand. Building on this historical reputation, Singapore evolved into an important Asian tourist hub The common origin and shared history of SIA and MAS In 1947, Malayan Airways was established and operated services between Kuala Lumpur, Singapore, Ipoh and Penang, using its fleet of twin-engined Airspeed Consuls. In May that year, when Malayan Airways first took to the skies, there were only five passengers onboard its twin-engined Airspeed Consul. With the flight crew having to attend to the flying of the plane, passengers had to help themselves with the only refreshment available onboard then a flask of iced water. In 1963, it was renamed Malaysian Airways Limited. In 1966, both the Malaysian and Singapore Governments acquired joint majority control. The following year, it was renamed Malaysia-Singapore Airlines (MSA) Limited. On 26 January 1971, both the Malaysian and Singapore Governments agreed to set up separate national airlines, and on 1 October 1972, Malaysia-Singapore Airlines ceased operations. In its place, Singapore Airlines (SIA) and Malaysian Airlines System (MAS) took to the skies. SIAs initial growth and expansion The split of MSA on 1 October 1972 saw MAS taking over all the domestic routes while SIA took over the international network and all the Boeing jets in the MSA fleet .SIA was government-owned, and the Singapore Government viewed the airline as an investment in a portfolio held by the republic. Although SIA was a state-owned enterprise, it paid taxes, like any other company in Singapore, and was expected to be competitive and profitable. Without any domestic routes to monopolise, SIA had to strategise to survive. Soon after the split, SIA embarked on an aggressive growth and aircraft and equipment acquisition programme. It acquired Boeing 747 Jumbo Jets, which went into service in 1973. In that same year, subsidiary Singapore Airport Terminal Services Ltd (SATS) was set up to provide ground services. In 1977, in conjunction with BA, it introduced the supersonic Concorde on the London- Bahrain-Singapore route. The maiden flight was on 10 December 1977. After three flights, however, disputes over airspace delayed regular Concorde service until early 1979. On 1 November 1980, the SIA/BA joint Concorde service between Singapore, Bahrain and London was, however, terminated. SIA began cargo service from Singapore to San Francisco via Hong Kong, Guam and Honolulu in 1978. Passenger service on the route commenced the following year. In 1979, SIA took the unprecedented action of trading in the B-747s purchased just a few years earlier for more advanced, fuel-efficient versions of the same aircraft while simultaneously expanding the fleet in a record-setting S$2.1 billion order with Boeing Aircraft. By 1979, it became the ninth largest airline in the world, up from the 57th position prior to the parting of ways with MAS, achieved on the back of a continuous average annual growth rate of 46 percent over its initial seven-year period (Harvard Business School, 1989b). SIA shares were listed on the Singapore Stock Exchange on 18 December 1985, and a new corporate identity was unveiled on 28 April 1987. On 14 December 1989, SIA concluded a major world-wide alliance with SwissAir and Delta Airlines, covering wide-ranging co-operation and eventual exchange of equity. An MOU with Cathay Pacific Airways and Malaysia Airlines was signed on 22 December 1992 to form a joint venture to develop and operate a frequent flyer programme. Passages,the frequent flyer programme, was officially launched on 1 July 1993. On 22 June 1994, SIA placed a US$10.3 billion order for 22 Megatop 747s and 30 Airbus 340-300E aircraft. The following year, on 14 November 1995, it ordered 77 B777 aircraft powered by Rolls-Royce Trent engines worth US$12.7 billion, including spares and spare engines. SIA turned 50 on 1 May 1997. It had by then grown into a diversified group, totally transformed from its humble beginnings 50 years ago. On 7 May 1997, less than a week following its 50th birthday, it took delivery of its first Jubilee B777-200, which touched down at Changi Airport. Symbolically, this ushered in another new and challenging era for SIA. The power of an idea: a most successful product/service differentiation strategy Within a year of the launch of SIA following the split of MSA on 1 October 1972, SIA began looking for new ways to differentiate itself. In 1973, SIA had in its service, some of the worlds most modern aircraft. Its maintenance operations were generally recognised to be on a par with those of the worlds major airlines. All its pilots and engineers were proficient and experienced, as there were no restraints from the unions on hiring Western crew members if SIA thought they were better. The product/service differentiation strategy that SIA finally decided upon was based on in-flight service. The strategy, as summarised by its then SIAs advertising manager, who later became its manager of in-flight services, was: What we needed was a unique selling proposition. Happily, we found it. Or perhaps I should say we found her, because the Singapore Girl has become synonymous with Singapore Airlines. SIA is an Asian airline, and Asia has a long tradition of gentle, courteous service. The Asian woman does not feel she is demeaning herself by fulfilling the role of the gracious, charming and helpful hostess. What we hope to do is translate that tradition of service into an in-flight reality (Harvard Business School, 1989b). SIA was thus strategically positioned in the premium service, quality and value market segment of the international airline industry. SIA capitalised on Oriental charm with stewardesses of Chinese, Malay, Indian, and Eurasian ethnic backgrounds. By 1997, this resource pool within Singapore had, however, expanded to include Malaysia, Indonesia, India, Taiwan, China, Japan and Korea. In 1997, a third of its 5,800-strong cabin crew were non- Singaporeans (The Sunday Times, 1997a, p. 3) SIA stewardesses were costumed in a specially designed version of the graceful Malay sarong kebaya, designed by renowned fashion house, Pierre Balmain. Passengers were treated to some of the best food on any airline, which is served with lots of warm smiles, warm towels, and attention to details. It provided first-class, business-class and economy-class passengers with cocktails, fine wines, and in-flight motion pictures at no extra charge. Since its inception, SIA has always subscribed to a policy that once a passenger pays for his or her ticket, there should be no more charges on the aeroplane. SIA now spend S$20 million a year on wines, with about 60 to 80 bottles of wine consumed per flight. International consultants who specialise in French, American and Australian wines are contracted to do wine-tasting twice a year for SIA, and they advise the airline on what to buy for its first, business and economy class passengers (Straits Times, 1997a, p. 22). According to SIA, the airlin e even receives letters from passengers asking for the names of wines that they took on SIA flights, with some asking where they can buy them (Straits Times, 1997a, p. 22). Service became the raison detre for SIA, and at the heart of its service reputation was the Singapore Girl. Slogans like A standard of service that even other airlines talk about and SIA: you are a great way to fly were used regularly in its marketing. SIA has always been of the view that the key to its success was its value or quality for the money. SIAs corporate philosophy of the airline industry since the late 1980s is best summed up by: The airline industry is, by its very nature, a service industry. In a free market, the success or failure of an individual airline is largely dictated by the quality of the service it provides (Joseph Pillay, Chairman SIA, Harvard Business School, 1989b). Most had to confront the apparent contradiction between cutting costs and prices, on the one hand, and maintaining customer focus and delivering customer service, on the other. It was a challenge many found most difficult. Into the 1990s SIA had developed a very strong market position. While keeping an eye on costs, its quality and service-enhancement strategy allowed it to command a relative market price premium position through premium service, value and quality. Its enviable position can be summed up as follows: If others resort to cutting fares, we can certainly do the same and we have a far better financial strength to cut fares and last longer than anyone else. But we ask ourselves first whether it is necessary to do that . . . So far, we have no need to do that (S. Dhanabalan, Chairman SIA, 1997, The Sunday Times, 1997b, p. 32). On competition, S. Dhanabalan reiterated SIAs long-standing strategy: Strong competition is not new to SIA. Every now and then, some airline, in an attempt to gain market share, will resort to senseless heavy discounting. It is a short term phenomenon. We take such competition in our stride (The Sunday Times, 1997b, p. 32) The Singapore Girl, the idealised version of the SIA cabin attendant, was the centrepiece in SIAs marketing strategy. Very high-quality photography was used in SIAs advertisements, and the Singapore Girl was always the central feature of the advertisements. The advertisements portrayed her in a number of settings and used a variety of themes to good effect. The Singapore Girl strategy proved to be a powerful idea and turned out to be a phenomenal success. International Research Associates (INRA), a firm which conducted surveys (covering the area of advertising recall) in the Asia Pacific area triennially, found that SIAs advertising enjoyed steady increases in unaided recall in the three successive INRA surveys in advertisement recall it conducted in 1973, 1976 and 1979. The SIA advertisement recall was 21 percent in 1973. It rose up to 32 percent in 1976, and shot up to 50 percent in.The average advertising recall of about 40 airlines studied over the same time period was only 9.6 percent (Harvard Business School, 1989b). SIAs market research up to 1997 continues to attest to this: Around the world the Singapore Girl remains a very positive marketing icon. She evokes the very best in Asian charm and hospitality (Director, Market Research, SIA, The Sunday Times, 1997a, p. 3). Although there were initial protests in some Western quarters in what was perceived to be sexist overtones in the advertisements, not everyone took offence at the advertising image. In a 1979 Fortune magazine article, Flying high with the Singapore Girls, it was noted that far from being repelled by the notion of becoming a `girl, about 7,000 young Singaporean women applied last year for 347 openings in the hostess ranks of SIA (Harvard Business School, 1989b). In the West, its acceptability in recent years had changed quite appreciably. In 1997, it was noted that: Her popularity in the West is such that it would be quite risky for SIA to attempt to change the image at a time when people there are getting used to her (Analyst, Goldman Sachs, The Sunday Times, 1997a, p. 3). Customer focus, innovation, creative service and service excellence On an SIA flight in 1996, a Chinese couple travelling in first-class with their children and nanny had refused the food served. When asked, the man of the family replied: We are just not used to these and would prefer a bowl of instant noodles. Since then, every SIA flight carries a supply of instant noodles for those customers who find in-flight cuisine not quite to their taste (Asian Business, 1996, p. 40). In addition, first-class and business-class passengers flying out of Singapore can now pre-order certain Singapore local fare prior to their flight to be served to them onboard. These are just some examples that illustrate the constant drive by SIA to introduce new ideas to improve customer service, in its customer focus to win customer satisfaction and even delight. There is of course nothing high-tech or sophisticated about instant noodles nor Singapore local fare, but these examples highlight the creative customer service even in simple things that has won SIA wide praise (Asian Business,1996, p. 40). This has become a hallmark of SIAs service excellence. In 1972, SIA was the first airline to introduce free food and alcoholic drinks on its flights. SIA has recognised that in this highly competitive market, any advantage gained by one airline over others will be short-lived, and ideas that are new will become commonplace in a matter of months. However, it noted that the important thing is to always stay in the forefront both in service and in technology (Asian Business, 1996, p. 40). This strategy of SIA focuses primarily not on reducing costs, but on enhancing quality or service and preventing customer problems from arising. SIA has succeeded most uniquely with this type of strategy in the airline industry, a strategy commonly employed in service businesses that command premium prices with high margins, businesses in which there is a high degree of repeat business, with word-of-mouth praise by customers as a most important marketing channel. It has been argued by some that an organisation should be conservative in its promises regarding service excellence to prevent customer expectations becoming too high. High expectations, so that argument goes, increase the potential for customer dissatisfaction. Such prescriptions, however, serve only companies with modest ambitions. In SIAs case, it was very different. It had a bold strategic vision and aspiration of being a top airline, not just any ordinary good airline. Through its careful market positioning and delivering its service promise, SIA could be said to be the very first airline in the international airline industry to have succeeded in developing such a powerful and enduring image of quality service that has resulted in its acquiring a sustainable competitive advantage. Its ability to sustain this advantage, even as its competitors seek to develop comparable service capability, had been buttressed by the fact that it was the first to earn and attain the quality-servic e position and image in the market and in customers minds. High service quality standards need to be developed systematically over time. Although sustaining a competitive advantage based on service quality is possible, this requires unrelenting effort on the part of an organisation to continually improve its service. This was achieved in SIAs case. As part of SIAs strategy to differentiate itself on the basis of superior customer service, it was able successfully to generate a vision of service excellence throughout the organisation. Such an organisation-wide energizing vision of service excellence is a powerful source of competitive advantage in top class service organisations. Such strength can be the bedrock of a quality and service-based sustainable competitive advantage. A service organisation that does not have such a shared vision and culture of service excellence will have a tough task acquiring it, as it cannot be bought. It must be built, as in SIAs case. In SIAs case, setting exceptionally high customer service standards generated a positive spirit and culture that had many follow-on results. Customer servicewent beyond the mechanics involved in efficiently providing a service onboard. Pride, zeal, and motivation were some of the positive service hallmarks that flowed from the shared vision and culture of service excellence, and the results were impressive. Unlike robots or machines, where differences in performance are largely rooted in technical specifications, human beings are subject to major performance variation. The SIAs vision and culture that hold exceptionally high customer service standards as a strategic objective to be attained were a most important factor accounting for its exceptional performance. To support this service excellence strategy, SIA adopts a most rigorous quality control system and process for staff recruitment and selection, as well as a rigorous training and service policy (Asian Business Review, 1996, p. 34). For example, SIA has one flight attendant for every 22 seats, the highest in the world and well above the industry average. Cabin crew must be under 26 and are employed on a five-year contract after making it through a very selective three-stage interview process that includes a social function Previously, all cabin crew would complete a six-month training course before they could be allowed to serve a customer. However, this has now been compressed into an intensive four-month course, which is still considered to be the longest and most comprehensive programme of any major airline. In comparison, Cathay Pacific, for instance, conducts only a seven-week intensive training programme on technical, safety and interpersonal skills. The aim of SIAs training is to provide gracious service reflecting warmth and friendliness, while maintaining an image of authority and confidence in the passengers minds. Each month, thousands of young ladies would apply for the airlines rigorous course that emphasizes safety training and encompasses beauty tips, discussions of gourmet food and fine wines, and the art of conversation. SIA is also at the forefront of service innovation through technology. For instance, it introduced Electronic Ticketing for flights from Singapore to Kuala Lumpur and Penang (and vice versa) on 1 October 1997. About two weeks earlier, on a flight from Singapore to Tokyo on 15 September 1997, it had launched a revolutionary innovation in in-flight entertainment with the introduction of the WISEMEN system, offering passengers full control over their viewing and listening options. With WISEMEN, passengers will be able to choose from 15 movies, 20 short features and about 50 CDs. This is over and above the current SIAs in-flight entertainment system, Krisworld, which already had 22 video channels, 12 audio channels and ten games channels. Internet check-in for First Class, Raffles Class and PPS Club Members flying out of Singapore was introduced on 20 November 1996. SIAs profitability track record Just as well-known as its product/service differentiation strategy, as well as its creative service and service excellence, but certainly less familiar, is SIAs profitability track record. Since its inception in 1972 some 25 years ago, SIA has had an uninterrupted profit track record. Asian Business Review, in an article piece on Asias Great Companies, noted that its financial track record is almost unheard of in the brutally cyclical airline industry, and touted it as the Worlds most profitable airline (Asian Business Review, 1996, p. 34). Its profitability track record is even more astounding considering that it is the national airline of a small country that is essentially just a city, of only 647 square kilometres and 3.6 million populations, with no domestic routes to monopolise. Yet, despite this it has managed to consistently deliver profits in one of the worlds most cyclical industries. SIA has an established practice of keeping its fleet young and modern (Singapore Airlines, 1997b, p. 5). This, made possible by the airlines strong cash flow position, has allowed it to maintain a fuel-efficient fleet that averages just over five years of age without resorting to heavy borrowing or costly leasing deals. The fleets of most other international carriers are more than twice as old as SIAs. SIAs fleet is in fact the youngest in the world, not taking into account the couple of small regional airlines that have just started up. For SIA, this strategy which entails heavy capital costs, however, translates to significant savings through minimising aircraft downtime and minimizing maintenance costs. Newer aircraft are also faster and more fuel efficient, and are perceived by passengers to be safer. For instance, the B747-400 is 10 percent more fuel efficient than its predecessor. For SIA, this means a significant saving as about 15 percent of the companys expenditure is on fuel (Asian Business Review, 1996, p. 34). Most airlines use a combination of different financing schemes for their aircraft with the core fleet usually on long-term leases to minimise interest costs. SIA History and Analysis of Singapore International Airlines History and Analysis of Singapore International Airlines Introduction SIA traced its roots to an organization called Malayan Airways that offered its first commercial passenger service in May 1947. Today, SIA is Singapores best-known company, and rated consistently as Asias most admired company(Asian Business, 1997,p. 24). Its smiling, willowy cabin attendant, outfitted in tight batik sarong kebaya designed by renowned fashion house Pierre Balmain, and marketed as the Singapore Girl, is now a well-known international service icon. In 1994, the year she celebrated her 21st birthday, the Singapore Girl became the first commercial figure to be displayed at the famed Madame Tussauds Museum in London. Madame Tussauds had unveiled the waxwork of the SIAs global marketing icon that year to reflect the ever-growing popularity of international travel. SIA is widely reckoned by those in the airline industry, travellers as well as its competitors, as one of the very best airlines in the world, judging from the numerous industry awards it has won. According to the Business Traveller Asia Pacific, SIA has become the standard by which all other international airlines are judged (Business Traveller Asia Pacific, 1997a, p. 3). SIA also consistently leads the industry in profitability and rides through rough and turbulent times much better than most of its rivals. It has had an impressive and continuous profit streak since it took to the skies some 25 years ago; a track record almost unheard of in the brutally cyclical airline industry (Asian Business Review, 1996, p. 34). On 1 May 1997, SIA turned 50 and celebrated its Golden Jubilee Anniversary in grand style. It was a far cry from its humble beginnings in 1947 when it started life as part of Malayan Airways. The International Airline Industry The airline industry had traditionally remained fragmented primarily due to the limiting effects of national and international regulations. Enforced in the form of landing rights and associated competitive constraints, even large airline companies had only been able to develop dominance over their own regional markets at best. With the exception of the United States, dominant national flag carriers, typically owned by the national governments, had remained the only international representatives of their countries. However, the competitive dynamics in this industry had started to change dramatically in recent years. Deregulation, privatization, and the advent of new technologies have started to reshape the industry on a global level. The United States deregulated its airlines in 1978 and had since witnessed heightened competition and aggressive jockeying for market position. Europe entered the throes of a similar escalation of competition following the creation of the European Union a nd the disbanding of country-specific barriers to free market competition among air carriers. In Asia, deregulation occurred in fits and starts with some major regions allowing greater access to foreign carriers. For example, India, a regional market of some significance, announced that it would privatize its state-owned airline company. It had already allowed its traditionally domestic airline to compete against its international air carrier in many of the regional markets comprising neighboring countries. Japan made major strides in deregulation after selling off its shares in the then state-owned Japan Airlines and permitted All Nippon Airways to serve international markets. In Latin America, many of the smaller national flag carriers were privatized. Countries such as Mexico and Argentina infused significant levels of market competition in their airline industries by removing anti-competitive barriers and privatizing their national airlines Mexicana and Aerolineas Argentinas. The trend seemed certain to gain further momentum and open skies might be closer to reality than ever before. The major European nations were already in discussions with the United States to implement an open Trans-Atlantic market area where landing rights would be determined by free market forces rather than regulatory policy. Open skies agreements are bilateral agreements between countries that agree to provide landing and take-off facilities for air carriers originating in any of the partner countries. Such an agreement does not have the typical restrictions related to landing rights that are determined on a city-pair basis. For example, Singapore and the U.S. had signed an open skies agreement under which a Singapore carrier could travel to any destinati on city in the U.S. and vice versa. The twin trends of privatization and deregulation resulted in an increasingly global approach to strategic positioning in this industry. Although most large carriers still retained their regional dominance, many forged alliances with other leading carriers to offer seamless services across wider geographic areas. These alliances made most of the larger airline companies de facto global organizations. With increasing geographic reach and decreasing regulatory barriers, many of the regions were witnessing acute competition often in the form of fare wars. Consumers in general became much more price sensitive than ever before. In attempting to keep up with the competition, many carriers upgraded their service offerings contributing to declining yields in a price-conscious market. Chronic excess capacity worldwide only exacerbated this situation. Not surprisingly, there was a decline in passenger revenue yield in all geographic regions and the airlines were fighting an uphill battle to ex tract higher levels of efficiencies from their operating structures. For example, passenger yield dropped by 1.9% and 2.5% in 1998 and 1999, respectively, in Europe and 0.8% and 1.5% in North America during the same period. The drop was far more geographic region-wise summary of key trends in passenger traffic, growth potential, and major players follows. (Source: Annual Reports and HSBC Research.) Asia-Pacific Region By 1999, traffic in the Asian region had become quite important to the overall success of the air transportation industry. Collectively, this region represented 24% of worldwide revenue passenger kilometers. The ICAO estimated that the Asia-Pacific region had grown annually by 9.7% over the last ten years. This upward trend was expected to continue albeit at slightly lower levels, moderating between 6%-7% until 2001. Trans-Pacific traffic was expected to grow at 6.6% and intra-Asia-Pacific traffic by 5%. Some analysts predicted that Asia would play a key role in over half of the top twenty international markets ranked in terms of revenue passenger miles by 2002 The aviation market in Asia, while similar to Europe of the pre-EU era, did indeed have some dominant players. Japan Airlines and Singapore Airlines were the clear leaders and together accounted for 40% of the market share. The second tier included Cathay Pacific, Thai, and Korean Air, which comprised 33% of the market. Asian carriers in general had significantly lower operating costs compared to their American and European counterparts. For example, in 1998, according to Warburg, Dillon Read, personnel costs for North American carriers accounted for approximately 32% of total revenues. For European carriers, it was 21%. However, for the Asia-Pacific carriers, it was only 17%. Most of the Asian carriers also had much higher labor productivity levels and lower unit labor costs than airlines in North America or Europe. This location-specific advantage was a primary reason why carriers from other regions were setting up significant hub operations in the Asia-Pacific region. While the y ields for many carriers such as China Airlines, Korean Air, Thai, and Malaysian, the second and third tier competitors, were much lower than international levels, the top tier carriers such as Japan Airlines, and Singapore Airlines had yields consistent with their North American and European counterparts. The avenues for differentiating airline services in this region were shrinking. The elite carriers who had built a reputation for superlative service such as Singapore Airlines were now facing stiff competition from carriers such as Thai Airways and Cathay Pacific who had geared to deliver similar services. Thus, differentiation was becoming much more demanding and difficult to sustain Singapore International Airlines: Country and Company History and Culture of Singapore Singapore had witnessed bountiful growth and become the envy of many neighboring countries as it entered the new 21st century. Its per capita GNP increased by a phenomenal 75% between 1990 and 1999 and currently stood at S$39,724. This meteoric rise could be directly traced to Mr. Lee Kuan Yew, the most powerful Prime Minister in Singapores history. He was able to tap the patriotic spirit of his people when he announced his intent to develop Singapore to rival Switzerland in terms of standard of living. His emphasis on superior education standards, a controlled labor environment, significant outlays for training and development, all helped to enhance the quality of human capital. At the end of 1999, Singapore boasted a literacy rate of 93%, among the highest in the region. Singapores Confucian work ethic dovetailed very well with his ambitions. It emphasized responsibilities over rights and placed enormous value on attributes such as hospitality, caring and service. As a result of th ese efforts, Singapore, today ranked among the best countries in terms of human capital and was often rated among the worlds friendliest places to do business. Rising standards of living meant higher wages .Coupled with the small size of the local population and a very low unemployment rate (3.2% in 1998), the availability of labor was seen as a potential stumbling block in the drive toward further growth. Many of the larger companies already depended on a sizable number of expatriates from neighboring countries as well as the West to staff positions. A staunch believer in free trade and internally driven growth, Mr. Yew made it clear from the start that the world does not owe Singapore a living. For example, in the air transportation sector, Mr. Yews government declared that SIA, although the national carrier, would not receive any subsidies, protection, financial assistance, or economic benefits from the government. It would have to sink or swim based on its own resources and ingenuity. Singapore literally adopted a free skies approach whereby foreign flag carriers from other countries were welcome to serve the city-state without any restrictions. This meant heightened competition for SIA right from the start. However, the free market philosophy also resulted in sharper rates of market growth. For example, roughly 35% of the equity base of Singapore was foreign in origin, and foreign investors owned 17% of all companies in the country, both testaments to the successful programs that attracted foreign capital and commerce to the island nation. The tourism industry played a very significant role in the overall development of the country. Handicapped by the small size and the lack of natural resources, Singapore had to rely on service industries such as tourism and finance to generate growth. It had always enjoyed an enviable status as an important geographic hub dating back to the pre-British Colonization era. During its history as a British colony, Singapore provided an important stop-off point for travelers from Europe and Britain to the outlying colonies of Australia and New Zealand. Building on this historical reputation, Singapore evolved into an important Asian tourist hub The common origin and shared history of SIA and MAS In 1947, Malayan Airways was established and operated services between Kuala Lumpur, Singapore, Ipoh and Penang, using its fleet of twin-engined Airspeed Consuls. In May that year, when Malayan Airways first took to the skies, there were only five passengers onboard its twin-engined Airspeed Consul. With the flight crew having to attend to the flying of the plane, passengers had to help themselves with the only refreshment available onboard then a flask of iced water. In 1963, it was renamed Malaysian Airways Limited. In 1966, both the Malaysian and Singapore Governments acquired joint majority control. The following year, it was renamed Malaysia-Singapore Airlines (MSA) Limited. On 26 January 1971, both the Malaysian and Singapore Governments agreed to set up separate national airlines, and on 1 October 1972, Malaysia-Singapore Airlines ceased operations. In its place, Singapore Airlines (SIA) and Malaysian Airlines System (MAS) took to the skies. SIAs initial growth and expansion The split of MSA on 1 October 1972 saw MAS taking over all the domestic routes while SIA took over the international network and all the Boeing jets in the MSA fleet .SIA was government-owned, and the Singapore Government viewed the airline as an investment in a portfolio held by the republic. Although SIA was a state-owned enterprise, it paid taxes, like any other company in Singapore, and was expected to be competitive and profitable. Without any domestic routes to monopolise, SIA had to strategise to survive. Soon after the split, SIA embarked on an aggressive growth and aircraft and equipment acquisition programme. It acquired Boeing 747 Jumbo Jets, which went into service in 1973. In that same year, subsidiary Singapore Airport Terminal Services Ltd (SATS) was set up to provide ground services. In 1977, in conjunction with BA, it introduced the supersonic Concorde on the London- Bahrain-Singapore route. The maiden flight was on 10 December 1977. After three flights, however, disputes over airspace delayed regular Concorde service until early 1979. On 1 November 1980, the SIA/BA joint Concorde service between Singapore, Bahrain and London was, however, terminated. SIA began cargo service from Singapore to San Francisco via Hong Kong, Guam and Honolulu in 1978. Passenger service on the route commenced the following year. In 1979, SIA took the unprecedented action of trading in the B-747s purchased just a few years earlier for more advanced, fuel-efficient versions of the same aircraft while simultaneously expanding the fleet in a record-setting S$2.1 billion order with Boeing Aircraft. By 1979, it became the ninth largest airline in the world, up from the 57th position prior to the parting of ways with MAS, achieved on the back of a continuous average annual growth rate of 46 percent over its initial seven-year period (Harvard Business School, 1989b). SIA shares were listed on the Singapore Stock Exchange on 18 December 1985, and a new corporate identity was unveiled on 28 April 1987. On 14 December 1989, SIA concluded a major world-wide alliance with SwissAir and Delta Airlines, covering wide-ranging co-operation and eventual exchange of equity. An MOU with Cathay Pacific Airways and Malaysia Airlines was signed on 22 December 1992 to form a joint venture to develop and operate a frequent flyer programme. Passages,the frequent flyer programme, was officially launched on 1 July 1993. On 22 June 1994, SIA placed a US$10.3 billion order for 22 Megatop 747s and 30 Airbus 340-300E aircraft. The following year, on 14 November 1995, it ordered 77 B777 aircraft powered by Rolls-Royce Trent engines worth US$12.7 billion, including spares and spare engines. SIA turned 50 on 1 May 1997. It had by then grown into a diversified group, totally transformed from its humble beginnings 50 years ago. On 7 May 1997, less than a week following its 50th birthday, it took delivery of its first Jubilee B777-200, which touched down at Changi Airport. Symbolically, this ushered in another new and challenging era for SIA. The power of an idea: a most successful product/service differentiation strategy Within a year of the launch of SIA following the split of MSA on 1 October 1972, SIA began looking for new ways to differentiate itself. In 1973, SIA had in its service, some of the worlds most modern aircraft. Its maintenance operations were generally recognised to be on a par with those of the worlds major airlines. All its pilots and engineers were proficient and experienced, as there were no restraints from the unions on hiring Western crew members if SIA thought they were better. The product/service differentiation strategy that SIA finally decided upon was based on in-flight service. The strategy, as summarised by its then SIAs advertising manager, who later became its manager of in-flight services, was: What we needed was a unique selling proposition. Happily, we found it. Or perhaps I should say we found her, because the Singapore Girl has become synonymous with Singapore Airlines. SIA is an Asian airline, and Asia has a long tradition of gentle, courteous service. The Asian woman does not feel she is demeaning herself by fulfilling the role of the gracious, charming and helpful hostess. What we hope to do is translate that tradition of service into an in-flight reality (Harvard Business School, 1989b). SIA was thus strategically positioned in the premium service, quality and value market segment of the international airline industry. SIA capitalised on Oriental charm with stewardesses of Chinese, Malay, Indian, and Eurasian ethnic backgrounds. By 1997, this resource pool within Singapore had, however, expanded to include Malaysia, Indonesia, India, Taiwan, China, Japan and Korea. In 1997, a third of its 5,800-strong cabin crew were non- Singaporeans (The Sunday Times, 1997a, p. 3) SIA stewardesses were costumed in a specially designed version of the graceful Malay sarong kebaya, designed by renowned fashion house, Pierre Balmain. Passengers were treated to some of the best food on any airline, which is served with lots of warm smiles, warm towels, and attention to details. It provided first-class, business-class and economy-class passengers with cocktails, fine wines, and in-flight motion pictures at no extra charge. Since its inception, SIA has always subscribed to a policy that once a passenger pays for his or her ticket, there should be no more charges on the aeroplane. SIA now spend S$20 million a year on wines, with about 60 to 80 bottles of wine consumed per flight. International consultants who specialise in French, American and Australian wines are contracted to do wine-tasting twice a year for SIA, and they advise the airline on what to buy for its first, business and economy class passengers (Straits Times, 1997a, p. 22). According to SIA, the airlin e even receives letters from passengers asking for the names of wines that they took on SIA flights, with some asking where they can buy them (Straits Times, 1997a, p. 22). Service became the raison detre for SIA, and at the heart of its service reputation was the Singapore Girl. Slogans like A standard of service that even other airlines talk about and SIA: you are a great way to fly were used regularly in its marketing. SIA has always been of the view that the key to its success was its value or quality for the money. SIAs corporate philosophy of the airline industry since the late 1980s is best summed up by: The airline industry is, by its very nature, a service industry. In a free market, the success or failure of an individual airline is largely dictated by the quality of the service it provides (Joseph Pillay, Chairman SIA, Harvard Business School, 1989b). Most had to confront the apparent contradiction between cutting costs and prices, on the one hand, and maintaining customer focus and delivering customer service, on the other. It was a challenge many found most difficult. Into the 1990s SIA had developed a very strong market position. While keeping an eye on costs, its quality and service-enhancement strategy allowed it to command a relative market price premium position through premium service, value and quality. Its enviable position can be summed up as follows: If others resort to cutting fares, we can certainly do the same and we have a far better financial strength to cut fares and last longer than anyone else. But we ask ourselves first whether it is necessary to do that . . . So far, we have no need to do that (S. Dhanabalan, Chairman SIA, 1997, The Sunday Times, 1997b, p. 32). On competition, S. Dhanabalan reiterated SIAs long-standing strategy: Strong competition is not new to SIA. Every now and then, some airline, in an attempt to gain market share, will resort to senseless heavy discounting. It is a short term phenomenon. We take such competition in our stride (The Sunday Times, 1997b, p. 32) The Singapore Girl, the idealised version of the SIA cabin attendant, was the centrepiece in SIAs marketing strategy. Very high-quality photography was used in SIAs advertisements, and the Singapore Girl was always the central feature of the advertisements. The advertisements portrayed her in a number of settings and used a variety of themes to good effect. The Singapore Girl strategy proved to be a powerful idea and turned out to be a phenomenal success. International Research Associates (INRA), a firm which conducted surveys (covering the area of advertising recall) in the Asia Pacific area triennially, found that SIAs advertising enjoyed steady increases in unaided recall in the three successive INRA surveys in advertisement recall it conducted in 1973, 1976 and 1979. The SIA advertisement recall was 21 percent in 1973. It rose up to 32 percent in 1976, and shot up to 50 percent in.The average advertising recall of about 40 airlines studied over the same time period was only 9.6 percent (Harvard Business School, 1989b). SIAs market research up to 1997 continues to attest to this: Around the world the Singapore Girl remains a very positive marketing icon. She evokes the very best in Asian charm and hospitality (Director, Market Research, SIA, The Sunday Times, 1997a, p. 3). Although there were initial protests in some Western quarters in what was perceived to be sexist overtones in the advertisements, not everyone took offence at the advertising image. In a 1979 Fortune magazine article, Flying high with the Singapore Girls, it was noted that far from being repelled by the notion of becoming a `girl, about 7,000 young Singaporean women applied last year for 347 openings in the hostess ranks of SIA (Harvard Business School, 1989b). In the West, its acceptability in recent years had changed quite appreciably. In 1997, it was noted that: Her popularity in the West is such that it would be quite risky for SIA to attempt to change the image at a time when people there are getting used to her (Analyst, Goldman Sachs, The Sunday Times, 1997a, p. 3). Customer focus, innovation, creative service and service excellence On an SIA flight in 1996, a Chinese couple travelling in first-class with their children and nanny had refused the food served. When asked, the man of the family replied: We are just not used to these and would prefer a bowl of instant noodles. Since then, every SIA flight carries a supply of instant noodles for those customers who find in-flight cuisine not quite to their taste (Asian Business, 1996, p. 40). In addition, first-class and business-class passengers flying out of Singapore can now pre-order certain Singapore local fare prior to their flight to be served to them onboard. These are just some examples that illustrate the constant drive by SIA to introduce new ideas to improve customer service, in its customer focus to win customer satisfaction and even delight. There is of course nothing high-tech or sophisticated about instant noodles nor Singapore local fare, but these examples highlight the creative customer service even in simple things that has won SIA wide praise (Asian Business,1996, p. 40). This has become a hallmark of SIAs service excellence. In 1972, SIA was the first airline to introduce free food and alcoholic drinks on its flights. SIA has recognised that in this highly competitive market, any advantage gained by one airline over others will be short-lived, and ideas that are new will become commonplace in a matter of months. However, it noted that the important thing is to always stay in the forefront both in service and in technology (Asian Business, 1996, p. 40). This strategy of SIA focuses primarily not on reducing costs, but on enhancing quality or service and preventing customer problems from arising. SIA has succeeded most uniquely with this type of strategy in the airline industry, a strategy commonly employed in service businesses that command premium prices with high margins, businesses in which there is a high degree of repeat business, with word-of-mouth praise by customers as a most important marketing channel. It has been argued by some that an organisation should be conservative in its promises regarding service excellence to prevent customer expectations becoming too high. High expectations, so that argument goes, increase the potential for customer dissatisfaction. Such prescriptions, however, serve only companies with modest ambitions. In SIAs case, it was very different. It had a bold strategic vision and aspiration of being a top airline, not just any ordinary good airline. Through its careful market positioning and delivering its service promise, SIA could be said to be the very first airline in the international airline industry to have succeeded in developing such a powerful and enduring image of quality service that has resulted in its acquiring a sustainable competitive advantage. Its ability to sustain this advantage, even as its competitors seek to develop comparable service capability, had been buttressed by the fact that it was the first to earn and attain the quality-servic e position and image in the market and in customers minds. High service quality standards need to be developed systematically over time. Although sustaining a competitive advantage based on service quality is possible, this requires unrelenting effort on the part of an organisation to continually improve its service. This was achieved in SIAs case. As part of SIAs strategy to differentiate itself on the basis of superior customer service, it was able successfully to generate a vision of service excellence throughout the organisation. Such an organisation-wide energizing vision of service excellence is a powerful source of competitive advantage in top class service organisations. Such strength can be the bedrock of a quality and service-based sustainable competitive advantage. A service organisation that does not have such a shared vision and culture of service excellence will have a tough task acquiring it, as it cannot be bought. It must be built, as in SIAs case. In SIAs case, setting exceptionally high customer service standards generated a positive spirit and culture that had many follow-on results. Customer servicewent beyond the mechanics involved in efficiently providing a service onboard. Pride, zeal, and motivation were some of the positive service hallmarks that flowed from the shared vision and culture of service excellence, and the results were impressive. Unlike robots or machines, where differences in performance are largely rooted in technical specifications, human beings are subject to major performance variation. The SIAs vision and culture that hold exceptionally high customer service standards as a strategic objective to be attained were a most important factor accounting for its exceptional performance. To support this service excellence strategy, SIA adopts a most rigorous quality control system and process for staff recruitment and selection, as well as a rigorous training and service policy (Asian Business Review, 1996, p. 34). For example, SIA has one flight attendant for every 22 seats, the highest in the world and well above the industry average. Cabin crew must be under 26 and are employed on a five-year contract after making it through a very selective three-stage interview process that includes a social function Previously, all cabin crew would complete a six-month training course before they could be allowed to serve a customer. However, this has now been compressed into an intensive four-month course, which is still considered to be the longest and most comprehensive programme of any major airline. In comparison, Cathay Pacific, for instance, conducts only a seven-week intensive training programme on technical, safety and interpersonal skills. The aim of SIAs training is to provide gracious service reflecting warmth and friendliness, while maintaining an image of authority and confidence in the passengers minds. Each month, thousands of young ladies would apply for the airlines rigorous course that emphasizes safety training and encompasses beauty tips, discussions of gourmet food and fine wines, and the art of conversation. SIA is also at the forefront of service innovation through technology. For instance, it introduced Electronic Ticketing for flights from Singapore to Kuala Lumpur and Penang (and vice versa) on 1 October 1997. About two weeks earlier, on a flight from Singapore to Tokyo on 15 September 1997, it had launched a revolutionary innovation in in-flight entertainment with the introduction of the WISEMEN system, offering passengers full control over their viewing and listening options. With WISEMEN, passengers will be able to choose from 15 movies, 20 short features and about 50 CDs. This is over and above the current SIAs in-flight entertainment system, Krisworld, which already had 22 video channels, 12 audio channels and ten games channels. Internet check-in for First Class, Raffles Class and PPS Club Members flying out of Singapore was introduced on 20 November 1996. SIAs profitability track record Just as well-known as its product/service differentiation strategy, as well as its creative service and service excellence, but certainly less familiar, is SIAs profitability track record. Since its inception in 1972 some 25 years ago, SIA has had an uninterrupted profit track record. Asian Business Review, in an article piece on Asias Great Companies, noted that its financial track record is almost unheard of in the brutally cyclical airline industry, and touted it as the Worlds most profitable airline (Asian Business Review, 1996, p. 34). Its profitability track record is even more astounding considering that it is the national airline of a small country that is essentially just a city, of only 647 square kilometres and 3.6 million populations, with no domestic routes to monopolise. Yet, despite this it has managed to consistently deliver profits in one of the worlds most cyclical industries. SIA has an established practice of keeping its fleet young and modern (Singapore Airlines, 1997b, p. 5). This, made possible by the airlines strong cash flow position, has allowed it to maintain a fuel-efficient fleet that averages just over five years of age without resorting to heavy borrowing or costly leasing deals. The fleets of most other international carriers are more than twice as old as SIAs. SIAs fleet is in fact the youngest in the world, not taking into account the couple of small regional airlines that have just started up. For SIA, this strategy which entails heavy capital costs, however, translates to significant savings through minimising aircraft downtime and minimizing maintenance costs. Newer aircraft are also faster and more fuel efficient, and are perceived by passengers to be safer. For instance, the B747-400 is 10 percent more fuel efficient than its predecessor. For SIA, this means a significant saving as about 15 percent of the companys expenditure is on fuel (Asian Business Review, 1996, p. 34). Most airlines use a combination of different financing schemes for their aircraft with the core fleet usually on long-term leases to minimise interest costs. SIA