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Being major suppliers that cater to the international market, these companies relatively hold more power than the airline itself. SIA who adopts the policy of maintaining a young fleet has Boeing and Air bus as their two major suppliers of aircraft and constant renewal is seen. This leads to a great supplier power by Boeing and Air Bus as they are the largest suppliers which have the youngest and performance fleet that SIA will need.
With the recent increase of oil prices to $100 per barrel, fuel cost is expected to rise as well, indirectly affecting the rate of fuel levy for passengers. With limited global supply but an accelerating demand for fuel, costs of operation is greatly increased, as fuel supply holds a 15 to 20% in operation costs...
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