ustry. With technology advance, high quality video conferencing are able to be done at low capital investment of USD 18,500 and low maintenance fee [Calingo, 1997]. New feature had been introduce, such as sharing of files, computer screen, recording while doing video conferencing have made video conferencing to be near equal to face-to-face meeting. Although video conferencing forms a good substitute for meeting, it is only part of the reason for business travelling, other function such as inspection, discussion on sensitive issue, contractual support or hands-on servicing still require personnel to be present. In general, SIA have a medium to low treat on substitute of products or services.

4.4 Bargaining power of buyers

The airline industry had been commoditise over the years, with objective of getting from one point to another, it doesn’t make a lot of difference on which airline they choose, this is true especially for long to medium haul flight. As the air space deregulate, for example, the recent deregulation of Singapore-Malaysia air route had prompt an influx of other carrier such as Firefly and Air Asia to the market SIA and MAS (Malaysia Airlines System) once hold monopoly.

The passengers in the airline industry consist of business traveller and discretionary traveller. Discretionary travellers are quite flexible on the time and flight connections, cost is a main concern for them. Business traveller are not so sensitive about price, instead short travelling time and comfortable journey are priority for them. All of them would not hesitate to switch airline if price and timing matched their interest. Kri