The physical resources of Singapore Airlines determine its capability to actualize expansion to South America. Over the years, Singapore Airlines has built its physical resources, specifically its aircraft fleet and its e-ticketing system, through procurements and innovative design. According to the Annual Report 2007-2008 of Singapore Airlines (2008), the airline has a 98 aircrafts comprising its passenger fleet with 6 years and 5 months as the average years of operation. A significant number of its aircrafts that service passengers are newly- purchased in the last five years.
Of its total passenger fleet, 72 belong to the Boeing 777 family. This makes SIA the largest operator of Boeing 777 in the world. SIA is also operating 3 Airbus A380, the advanced innovation in aircrafts, to make the airline the only company the first to use these aircraft. The company has also ordered 16 more Airbus A380 for delivery by 2010 and 2011. SIA also made agreements for the possible order of 5 more of these innovative planes in the future. Nine of the ordered Airbus A380 utilizes the Rolls Royce Trent 900, the most efficient, environment friendly, and powerful engine to date.
In addition, SIA also maintains a freighter fleet of 31, out of which 14 are Boeing 747-400 that have been in operation for an average of 7 years and 4 months. Moreover, the physical resources of SIA also include the 8 Airbus A320 and 6 Airbus A319 of Silk Air, the wholly owned subsidiary of SIA and the regional arm of the company. The addition fleet of 14 Airbus planes has been in operation for an average of 5 years and 6 months. SIA also developed interline e-ticketing is a distribution channel with 97 percent of ticket sales between 2007 and 2008 procured electronically.
SIA offers this service through 120 interline ticketing partners located in different parts of the globe. The number of partners comprises the largest e-ticketing network in the aviation industry. (Singapore Airlines, 2008) SIA’s existing fleet and expected additions by 2010 and 2011 support the expansion into South America. The airline has always adjusted its physical resources based on expected demand and its current and expected addition to its physical resources should suffice in servicing the new market. The establishment of e-ticketing distribution partners in South America would also entry into the region.