March 2009, the group have 31,834 employee, posted a revenue of SGD 15,996 million. The airlines also operate route on 36 countries with 66 destinations and 726 weekly flights. The performance of Singapore Airlines at the beginning of year 2009 was severely hit by the economic downturn and pre-purchase fuel priced hedge at high level before the financial crisis [SIA annual report 08/09]. Recent health crisis like bird flu, H1N1 had also affected the travel industry which the airline is operating in. 3.0 External Environment Analysis 3.1 Political Singapore has a stable political environment, with its dominant political party People’s Action Party (PAP) holding the government since independences. Singapore government have allowed freedom in corporate governance and have set little restriction to the industry. The company are able to make over 90% of the decision on its own. The government only influence the company by appointing director over the company [Sikorski, 1995]. The government also allowed SIA to stress on profit when compare to public or social responsibility, the government supported the company for retrenchment practise during economy crisis [Sikorski, 1995]. Singapore foreign policy is maintain good relationship, it have established diplomatic relationship with 175 countries and have particular good relationship with large economy country like France, Germany and United Kingdom in Europe. The country also enters into free trade agreement between Australia, India, Japan, Korea, New Zealand, United States of America and recently, with China on October 2008. The country is seen working hard to build a strong tie with Middle East country with intensive high level visit between both countries in 2008 and signing>