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SLK-2012-08 - 737 ORDER
SLK-2014-02 - 1ST 737-800
SLK-2014-06-SINGAPORE - MANDALAY
SLK-2014-06-SINGAPORE TO HANGZHOU-A
SLK-2014-06-SINGAPORE TO HANGZHOU-B
SLK-CABIN ATTENDANTS - 2004-10
SLK-FLIGHT CREW CABIN ATTENDANTS-2014-06
THIS AIRLINE WAS ORIGINALLY ESTABLISHED IN 1975 AS PARENT COMPANY, SINGAPORE AIRLINES (SIA)'S WHOLLY-OWNED TOUR AND CHARTER SUBSIDIARY UNDER THE "TRADEWINDS" BRAND. SMALL TURBOPROPS WERE USED INITIALLY FOR SHORT-HAUL SERVICES TO HOLIDAY DESTINATIONS, INCLUDING PATTAYA, PHUKET, HATYAI, KUANTAN, AND TIOMAN. IT WAS REBRANDED AS "SILKAIR" (SLK) IN APRIL 1992 TO HIGHLIGHT ITS EVOLUTION INTO A CARRIER SERVING BOTH BUSINESS (C) AND LEISURE (Y) PASSENGERS. STARTED JET AIRPLANE OPERATIONS IN 1989. DOMESTIC, REGIONAL, & INTERNATIONAL, SCHEDULED & CHARTER, PASSENGER & CARGO, JET AIRPLANE SERVICES.
05D AIRLINE HOUSE
25 AIRLINES ROAD
SINGAPORE 819830, SINGAPORE
SINGAPORE (REPUBLIC OF SINGAPORE) WAS ESTABLISHED IN 1965. IT IS AN ISLAND THAT COVERS 618 SQ KM AND ITS CAPITAL CITY IS SINGAPORE. THE OFFICIAL LANGUAGE IS ENGLISH AND ITS POPULATION IS 4 MILLION.
JANUARY 1993: 100% OWNED BY SINGAPORE AIRLINES (SIA).
1992 = +$0.9 MILLION (NET PROFIT): +75.7% (RPK) PASSENGER TRAFFIC, +77.2% PASSENGERS (PAX).
449 EMPLOYEES (INCLUDING 163 FLIGHT CREW (FC) & 7 MAINTENANCE TECHNICIANS (MT).
TO 21 DESTINATIONS IN NINE COUNTRIES IN SOUTHEAST ASIA. NEW ROUTE TO KUNMING, YUNNAN.
JULY 1994: 1ST 6 MONTHS 1994 = +26.8% (RPK) TRAFFIC, +15.2% (PAX) PASSENGERS.
DECEMBER 1994: 2 ORDERS (MARCH & OCTOBER 1995) F 70'S.
MARCH 1995: JOINT SERVICE WITH SEMPATI AIR (SEM), TO INDONESIAN ISLAND OF LOMBOK.
JUNE 1995: JOINT SERVICE WITH MERPATI AIR (PNM), TO SOLO CITY.
SEPTEMBER 1995: 1 ORDER (OCTOBER 1995) 737-33A (PS627), AWAS (AWW) LEASED. 1 737-3M8 (PS652) & 2 737-3YO'S (PM392; PM396), (GUI) LEASED. TO STOP FLYING A310-300 TO HANGZHOU, CHINA, & TRANSFER BACK TO SINGAPORE AIRLINES (SIA), & ONLY FLY 737'S & F 70'S.
OCTOBER 1995: 1 737-300 DELIVERY.
NOVEMBER 1995: CODE SHARE WITH (PTB), SINGAPORE TO UJUNG PANDANG, SOUTH SULAWESI, 3/WEEK.
1 737-300, (AWW) LEASED. RETURNED 2 A310'S LEASED AIRPLANES TO SINGAPORE AIRLINES (SIA), INCLUDING SINGAPORE - KAOHSIUNG ROUTE. TO LEASE F 70'S AS REPLACEMENTS.
JANUARY 1996: 1995 = -16% (RPK) TRAFFIC, -11% PASSENGERS (PAX), -17% (ASM) CAPACITY, -26% (FTK) FREIGHT TRAFFIC.
APRIL 1996: WINS "BEST REGIONAL AIRLINE" AWARD.
OCTOBER 1996: NEW ROUTES TO GUILIN AND CHENGDU, CHINA. THE NETWORK IS 20 DESTINATIONS IN 8 COUNTRIES. WILL START DAVAO, PHILIPPINES IN MARCH 1997, & WILL ADD NEW ROUTES IN SOUTHERN CHINA. POSSIBLE EXPANSION TO INDIA, AUSTRALIA AND SOUTH KOREA, DEPENDING ON ACQUISITION OF NEW LONG RANGE, 150 PASSENGER AIRPLANES. CONSIDERING LARGER AIRPLANES.
FISCAL YEAR (FY) 1996 6 MONTHS = -$2.1 MILLION.
AVERAGE DAILY UTILIZATION IS >9 HOURS FOR 737'S & F 70'S.
FEBRUARY 1997: 1 737-300 DELIVERY (28556), (GUI) 3 YEAR LEASED.
MARCH 1997: TO DAVAO (F 70) & TO BALIKPAPAN (INDONESIA).
6TH 737-300, (GUI) LEASED. 1 ORDER 737-300.
APRIL 1997: 483 EMPLOYEES (INCLUDING 192 FLIGHT CREW (FC) & 3 MAINTENANCE TECHNICIANS (MT)).
MAY 1997: 3/5 ORDERS (SEPTEMBER 1998) A319'S & 5/5 ORDERS A320'S (V2500) FOR 737 FLEET ROLLOVER. 10 OPTIONS MAY VARY BETWEEN A319/A320/A321'S.
JUNE 1997: TO BALIKPAPAN (F 70).
DECEMBER 1997: ACCDT: (SLK) 737-300 (28556, /97) CRASHED ON ISLAND OF SUMATRA INDONESIA = ALL 7 (FC)-(CA)/97 PASSENGER FATALITIES, AT PALEMBANG. THE CONCLUSION REGARDING THIS CRASH WAS THAT THE CAPTAIN (FC) IN COMMAND HAD DELIBERATELY CRASHED THIS AIRPLANE.
APRIL 1998: 483 EMPLOYEES (INCLUDING 192 FLIGHT CREW (FC) & 3 MAINTENANCE TECHNICIANS (MT)).
JULY 1998: WHEN 1ST A320 DELIVERS IN SEPTEMBER 1998, (SLK) WILL OPERATE TO PHUKET, MEDAN, XIAMEN, CEBU, AND JAKARTA.
SEPTEMBER 1998: 1ST A320-232 (V2527-A5) (872) DELIVERY .
OCTOBER 1998: 737-33A (27457), RETURNED TO AWAS (AWW).
NOVEMBER 1998: A320-232 (899) DELIVERED.
JANUARY 1999: 737-3YO (24902) RETURNED TO (GEH), LEASED TO SATA (SAP).
MARCH 1999: A320-232 (V2527-A5) (969, 9V-SLC) DELIVERY.
APRIL 1999: 1998 = -12.6% PASSENGERS PAX, -12.8% (FTK) (FREIGHT TRAFFIC).
SOLD 1 737-300. ALL 5 737'S TO BE PHASED OUT BY THE END OF 1999. WILL FLY 2 A319'S & 3 A320'S. A 3RD A319 IS DUE BEFORE APRIL 2000.
MAY 1999: 1ST SERVICE TO INDIA, WITH 2/WEEK, TO TRIVANDRUM (NOW THIRUVANANTHAPURAM) (A320).
SEPTEMBER 1999: MAK SWEE WAH, GENERAL MANAGER.
737-3M8 (25017) RETURNED TO (GEH). A319-132 (1074, 9V-SBA) DELIVERY.
FEBRUARY 2000: +1 ORDER A320 (2001) (V2500).
MARCH 2000: AFTER DELIVERY OF 3RD A319 IN APRIL 2000, WILL PHASE OUT ITS F 70 FLEET.
APRIL 2000: 505 EMPLOYEES (INCLUDING 64 FLIGHT CREW (FC), 139 CABIN ATTENDANTS (CA), & 9 MAINTENANCE TECHNICIANS (MT)).
NOW TO 20 DESTINATIONS IN 7 COUNTRIES.
JULY 2000: 1999 = 353 MILLION (RPK) TRAFFIC; 66.4% (LF) LOAD FACTOR; 3.51 MILLION (FTK) FREIGHT TRAFFIC; 252,000 PASSENGERS (PAX); 505 EMPLOYEES.
OCTOBER 2000: IN NOVEMBER 2000, SINGAPORE - SIEM REAP - PHNOM PENH.
MARCH 2001: 1 A320-232 (1422, 9V-SLD) DELIVERY.
APRIL 2001: TAN SIAH JOO, ENGINEERING MANAGER.
SEPTEMBER 2001: A320-232 (1561, 9V-SLE), GECAS (GEF) LEASED.
OCTOBER 2001: TO PALEMBANG.
DECEMBER 2001: 1 ORDER (February 2003) A320-200.
APRIL 2002: 480 EMPLOYEES (INCLUDING 62 FLIGHT CREW (FC); 141 CABIN ATTENDANTS (CA); & 5 MAINTENANCE TECHNICIANS (MT)).
MAIN BASE: SINGAPORE CHANGI AIRPORT (SIN). SITA: SINCRMI.
OWNER: SINGAPORE AIRLINES (100%).
MAY 2002: FISCAL YEAR (FY) 2001 OPERATING PROFIT = S$17 MILLION (-S$6 MILLION).
July 2002: To Chengdu (nonstop, 2/week).
October 2002: $328 million, 2 orders A319-100's and 4 orders A320-200's.
Now operates 109 services/week to 25 destinations within Asia. Plans to increase services to more cities in China, India, and Indo-China.
November 2002: Currently flies 117 services/week to 26 Asian destinations. Plans fleet expansion to 16 airplanes by 2007. In recent months Silkair (SLK)'s network has expanded to Kochi, and Hyderabad, in South India, Chittagong, in Bangladesh, plus Macau, Krabi, and Chengdu. In the pipeline are charter services to India's Jaipur (a desert city of forts and palaces), and Bodhgaya (where Budha is said to have attained enlightenment), which are targeted for year-end holidays. More destinations in China are also planned.
One reason for going to Chittagong is a new airport, in a Japanese-backed free-trade zone. Incoming freight does not have to pay duties to the national flag carrier Biman Bangladesh Airlines (BNG), which it does need to do at Zia International Airport, in Bangladesh.
Parent, Singapore Airlines (SIA) may transform (SLK) into a low-cost carrier.
TTG Asia Travel awards (SLK) "Best Regional Airline."
February 2003: Exercised options on 4 A319's and 2 A320's.
April 2003: Outbreak of Severe Acute Respiratory Syndrome (SARS) virus from China and Hong Kong has resulted in Silkair (SLK) cutting its capacity by -24.3% (ASK)'s in May 2003.
464 employees (including 62 Flight Crew (FC), 161 Cabin Attendants (CA), & 4 Maintenance Technicians (MT)).
July 2003: 485 employees.
A320-232 (2058, 9V-SLF) delivery.
October 2003: Code share with Air Macau (MCU), Macau - Singapore. In December 2003, Singapore - Fuzhou (2/week).
January 2004: 4th Quarter = +SGD$9.2 million/+$5.5 million (+3.4%).
Plans to add +6 airplanes starting in April 2004, for total 16.
May 2004: In June 2004, Singapore - Chongqing (A319, 2/week).
Singapore Airlines (SIA) Engineering 10-year contract, S$120 million /$71 million to perform maintenance on sister company Silkair (SLK)'s fleet of A320's.
August 2004: Parent Singapore Airlines (SIA) will install anti-SAM/MANPAD equipment on all its airplanes and SilkAir (SLK) within 12 to 18 months.
A320-232 (2252, 9V-SLG) delivery.
November 2004: In January 2005, Singapore - Siem Reap - Danang - Singapore (A320, 3/week).
Singapore and Sri Lanka have signed an "open skies" agreement, where restrictions have been lifted on the countries' operations between the 2 countries.
March 2005: In summer, 127 weekly flights to 25 regional destinations, including to Phuket (21/week), Davao (daily), Kochi (5/week), Manado (4/week), Yangon (11/week), & Padang (2/week).
August 2005: Selects Lufthansa (DLH) Systems for its Netline/Crew management solution.
653 employees (including 117 Flight Crew (FC); 231 Cabin Attendants (CA); & 13 Maintenance Technicians (MT)).
September 2005: A320-233 (2517, 9V-SLH), delivery.
October 2005: Changi Airport handled 2.19 million passengers in September, a +8.5% increase over the same month in 2004, Singapore Airport Terminal Services said. It said the rise reflected the rapid growth of low cost carriers there, which experience a +10.1% increase in flights.
A319-132 (2568, 9V-SBE), delivery.
November 2005: 1st 10 months international = Passenger Traffic 1.61 billion (RPK) (+9.9%); Freight traffic 17.44 million (FTK) (+7.8%); 878,000 passengers (+6.9%).
Silk Air (SLK) will inaugurate nonstop service from Singapore to Kota Kinabalu on December 12th. The airline will operate 2 flights a week, on Mondays/Fridays using an A320.
April 2006: Silk Air (SLK) will increase the frequency of flights from Singapore to Phuket from 21 to 24 flights a week. (SLK) will operate an additional flight on Tuesdays, Thursdays & Saturdays.
May 2006: A320-232 (2775, 9V-SLI), delivery.
August 2006: 1st 6 months = 1.23 billion passenger traffic +32.1% (RPK), 13.95 million freight traffic +26.6% (FTK), 733 thousand passengers +47.2%.
SilkAir (SLK) turned its back on regional jet offerings and issued a Request For Proposal (RFP) for up to 20 737s/A320s. (SLK) said the airplanes are for delivery from 2009. (SLK) once operated 737s, but has replaced them with a fleet of 12 A320s/A319s, with three more deliveries scheduled through 2008.
November 2006: Silkair (SLK) operates scheduled, passenger, jet airplane services from Singapore to destinations in Cambodia, China, Indonesia, Malaysia, Myanmar, Philippines, India, and Thailand.
December 2006: Singapore Airlines (SIA) ordered 11 A320s plus nine options to be delivered to regional affiliate, SilkAir (SLK) from 2009 to 2012. The (SLK) order is valued at $1.33 billion. The regional said it will use the airplanes for flights in Asia.
January 2007: Singapore Changi airport posted record traffic in 2006 with 35.03 million passengers, up +8%, and 1.9 million tonnes of cargo, up +4.2%.
(IATA) (ITA) named Mike Barclay, Regional VP Asia/Pacific, effective May 14. Barclay has been (CEO) of SilkAir (SLK) since 2004.
March 2007: Starting May 25th, Singapore - Kaohsiung, using A319s.
May 2007: A319-132 (3104, 9V-SBF), delivery.
November 2007: 1st 6 months = 1.38 billion (RPK)s (+11.9%) traffic; 13.43 million (FTK)s (-3.7%) freight traffic; 828,000 passengers (+13%).
February 2008: The Civil Aviation Authority of Singapore (CAAS) will spend S$500 million upgrading Singapore Changi Airport (SIN)'s 27-year old, Terminal 1. Work will start in May, and be completed by 2011. The upgrade will reflect features of the newly opened Terminal 3.
The (CAAS), which is responsible for Changi Airport (SIN), has awarded Thales (THL) a contract worth >S$300 million/$209 million to provide a customized Air Traffic Control (ATC) system.
March 2008: The Civil Aviation Authority of Singapore (CAAS) announced a S$10 million/$7.2 million expansion project at Changi Airport's Budget Terminal scheduled to begin in July. The 7-gate facility, which opened in March 2006 and caters to Low Cost Carrier (LCC)s, will be enlarged to 28,700 sq m from 25,000 and boost annual passenger capacity to 7 million from 2.7 million. The (CAAS) said approximately 1.8 million passengers used the terminal in 2007. Tiger Airways (TGR) and Cebu Pacific Air (CEB) operated 248 flights last month to 20 destinations. Work will include the addition of 7 new check-in counters, 3 passenger gates and new baggage handling equipment. It is scheduled to be finished in early 2009.
April 2008: SilkAir (SLK) chose (IAE) (V2500)s to power 11 firm and 9 option A320s to be delivered between 2009 and 2013. Engines will be the SelectOne build standard and the deal includes aftermarket support.
June 2008: Telair will provide SilkAir (SLK) with its Sliding Carpet Loading System for A319s and A320s under a recent deal. Airbus (EDS) will install the systems prior to delivery.
July 2008: Employees = 723 (including 125 Flight Crew (FC), 252 Cabin Attendants (CA), & 15 Maintenance Technicians (MT)).
August 2008: SilkAir (SLK) (CEO), Chin Yau Seng told reporters that demand for its services remains robust with the exception of "a few blips," and that capacity growth for the fiscal year beginning April 1 now is expected to be +5% to +7%, down slightly from the +8% to +10% previously forecast. "So far, we have seen continued strong support to a lot of our regional points," Chin said, noting that demand is strong from both leisure and business travelers despite high fuel prices.
2nd-quarter revenue climbed +19% year-over-year to +S$131 million/+$92.6 million and load factor rose +3.2 points to 72.7% LF, according to the Associated Press. Singapore Airlines (SIA)'s regional subsidiary reported a doubling in operating profit to +S$40 million in the fiscal year ended March 31, on a +12.3% increase in passengers to 1.8 million, "Agence France Presse" reported. The capacity growth downgrade was necessitated by slowing demand to China, where SilkAir (SLK) operates to Chengdu, the main city in earthquake-devastated, Sichuan Province. "It's a hiccup in our growth," Chin said. "We're still committed to the Chinese market." He was speaking at the unveiling of the 1st of 12 A320s the airline expects to add over the next three years.
A320-232 3570, 9V-SLJ), delivery.
January 2009: Panasonic Avionics reached a deal with SilkAir (SLK) to install its Multiplexed Passenger Entertainment System on 12 A320s.
February 2009: Massive fuel hedging losses and falling revenue resulted in a -43% drop in fiscal 3rd-quarter profit at Singapore Airlines Group, to +S$337.2 million/+$225.5 million from the +S$590 million earned in the 3 months ended December 31, 2007. Revenue fell -2.6% year-over-year to $4.16 billion, while a -S$125 million drop in fuel costs was offset by a -S$341 million hedging loss. "Other cost items were well contained," (SIA) said, as total expenditure climbed +5.7% to S$3.81 billion. Costs were down -5.5% excluding fuel, but (SIA) lost an additional -S$144 million on foreign exchange fluctuations. Operating profit plunged -47.1% to +S$356.7 million.
The airline unit (SIA) reported a +S$314 million operating profit, down -38.7% year-over-year. (SIA) Cargo (SQC) swung to a -S$46 million loss from a +S$73 million profit, the SilkAir (SLK) subsidiary posted a +S$12 million profit (down -17.2%), (SIA) Engineering enjoyed a +S$29 million profit (up +53.9%) and Singapore Airport Terminal Services recorded a +S$43 million profit (down -7.7%).
Third-quarter passenger numbers fell -4.2% to 4.8 million, while (RPK)s traffic were down -1.2% to 23.3 billion. Capacity rose +2.3% to 29.67 billion (ASK)s, dropping load factor -2.8 points to 78.5% LF. Yield rose +3.2% to S$12.8 cents and unit cost was up +10.7% to S$9.3 cents. (SIA) finished the quarter with 14 747-400s, 76 777s, 5 A340-500s and 6 A380-800s.
9-month profit of +S$1.02 billion represented a -33% decline from the +S$1.52 billion earned in the year-ago period. Operating profit fell -43.8% to +S$931.6 million. "Demand for air transportation is expected to remain weak for much of 2009. (SIA) will continue to monitor the patterns of demand and make appropriate adjustments to flight schedules and capacity, while managing costs tightly."
March 2009: A320-233 (3821, 9V-SLK), delivery.
July 2009: The global economic downturn, swine flu and unfavorable fuel hedges were enough to drag Singapore Airlines (SIA) to its 1st quarterly deficit since 2003, a -S$307.1 million/-$212.6 million loss that compared to a +S$358.6 million profit in the fiscal 1st quarter of 2008 to 2009.
Group revenue during the quarter ended June 30 dropped -30.5% to S$2.87 billion, while expenses were reduced -15.8% to S$3.19 billion. A -S$287 million loss on fuel hedges partially offset the S$1.14 billion it saved on fuel prices compared to last year. Operating loss of -S$319.3 million represented a reversal from the +S$343.2 million earned in the year-ago quarter. (SIA) said it has initiated measures that will result in -S$60 million in employee cost savings in the fiscal year ending March 31, 2010. It said it also is "continuing its efforts to eliminate wastage and duplication and to negotiate with vendors to reduce rates."
The (SIA) airline segment suffered a -S$271 million operating loss in the quarter, compared to a +S$265 million profit last year. (SIA) Cargo (SQC) lost -S$104 million (+S$5 million profit), (SIA) Engineering made +S$12 million (down -25%) and SilkAir (SLK) lost -S$3 million (+S$10 million profit).
(SIA) took delivery of 2 A380-800s and 4 A330-300s, while decommissioning 3 747-400s. It operated 107 passenger airplanes as of June 30. (SIA) flew 18.66 billion (RPK)s traffic, down -19.6%, against a -13.7% cut in capacity to 26.07 billion (ASK)s. Load factor dropped -5.1 points to 71.6% LF. Yield plunged -17.7% to S$10.2 cents and unit cost eased just 1.1% to S$8.6 cents.
The company said that if the "adverse business conditions" currently facing airlines continue, it will report a full-year loss. Airline revenue exceeds cash expenditure but not depreciation charges, but the group said it "does not foresee any necessity to raise capital."
October 2009: Singapore Airlines (SIA) is transferring all Singapore - Phuket flying to its SilkAir (SLK) subsidiary.
December 2009: A320-233 (4118, 9V-SLL), delivery.
April 2010: A319-133 (4259, 9V-SBH), delivery.
May 2010: SilkAir (SLK) commenced daily service between Singapore and Bangalore using A320s. Parent, Singapore Airlines (SIA) already serves the Indian city with a daily service. (SLK) launches service to another Indian destination, Chennai, with a daily flight beginning June 14.
June 2010: SilkAir (SLK) has started flights from Singapore to Bangalore and Chennai, complementing services by parent, Singapore Airlines (SIA) as part of a group strategy to deal with low-cost competition.
Tiger Airways (TGR) and Air India Express (AXB) also fly between
Singapore and India. Jetstar Asia (JSA) is also looking at
(SLK) launched daily flights between Singapore and Bangalore on May 17 and to Chennai on June 14, using A319s and A320s. Since Singapore Airlines (SIA) serves each city daily with wide body airplanes, the frequencies have been doubled. Apart from Bangalore and Chennai, (SLK) flies to Indian destinations: Thiruvananthapuram, Kochi, Hyderabad, and Coimbatore.
July 2010: Singapore Airlines (SIA) reported net income of +S$253 million/+$184.7 million for its fiscal 1st quarter ending June 30, reversed from a -S$307 million loss in the year-ago period, and said the recovery in passenger demand and yield evident in the quarterly results "will hold up for the rest of 2010."
Revenue lifted +20.7% to S$3.47 billion, "reflecting the recovery in load factor and yields," (SIA) said. It noted that advance bookings continue to look solid. Passenger yield during the quarter rose +14.7% year-over-year to S$0.117.
(SIA) saw a particular boost in its cargo business, which reported a +5.2% increase in cargo and mail carried to 281.3 million kg. Cargo yield leaped +42.3% to S$0.387. "Leading indicators, as well as sentiment among shippers and forwarders, suggest that the recent resurgence in air freight may be sustained in the near term, although the rate of growth may abate," (SIA) said.
Fiscal 1st-quarter expenses increased +0.9% to S$3.23 billion "due primarily to higher expenditure on fuel [up +42.4%], partially offset by a smaller loss from fuel hedging (S$78 million this year versus $287 million last year) as well as other non-fuel expenditure savings of S$80 million," the company said. Operating profit was +S$250.5 million, reversed from a -S$319.3 million operating loss in the year-ago quarter.
Operating profit for its passenger airline business was +S$136 million, reversed from a -S$271 million operating loss in the Fiscal Year (FY) 2009 to 2010 1st quarter. Singapore Airlines Cargo (SQC) swung to a +S$60 million operating profit from a -S$104 million loss in the year-ago period, while (SIA) Engineering earned +S$36 million on an operating basis, reversed from a -S$12 million operating deficit in the prior-year period. (SLK) posted operating income of +S$15 million, turned around from a -S$3 million loss.
September 2010: SilkAir (SLK) has appointed Marvin Tan as (CEO), effective October 11. Tan is currently Singapore Airlines (SIA)’s Divisional VP Customer Services. He replaces Chin Yau Seng, who is returning to (SIA) to be Divisional VP Cabin Crew Operations.
“In the past 3 and a half years as (CEO), Yau Seng has worked tirelessly to strengthen (SLK)’s operations in the region and kept (SLK) profitable, even during the recent economic downturn,” said SilkAir (SLK) Chairman Goh Choon Phong. During Chin’s tenure at (SLK) there was a liberalization of air services in Southeast Asia. The carrier has had to contend with low-cost carriers, such as AirAsia (ASW) and Tiger Airways (TGR) moving onto its routes.
December 2010: SilkAir (SLK) will launch 3x-weekly, Singapore Changi - Pekanbaru in February.
May 2011: Singapore Airlines (SIA) earned a +S$1.09 billion/+$885.3 million net profit for its fiscal year ended March 31, a >fivefold increase over net income of +S$215.8 million in Fiscal Year (FY) 2009 - 2010 and exceeding the +S$1.06 billion profit posted in (FY) 2008 - 2009. The strong results were achieved even with (SIA) making a S$201.8 million provision for paying cargo antitrust (ATI) fines to the USA, (EU) and South Korea.
Revenue generated in (FY) 2010 to 2011 increased +14% year-over-year to S$14.52 billion "as both carriage and yields recovered from depressed levels last financial year," (SIA) said. "This revenue growth was achieved in a year punctuated by disruptions ranging from volcanic ash in Europe (April 2010), snowstorms in Europe and the USA, floods in Australia, and earthquakes in New Zealand and Japan."
Fiscal-year expenses lifted +5% to S$13.25 billion. Fuel costs, excluding hedging, rose +24%, (SIA) said. Operating profit was +S$1.27 billion, significantly widened over an operating profit of +S$63.2 million in (FY) 2009 - 2010.
Singapore Airlines (SIA) airline company posted an operating profit of +S$851 million for (FY) 2010 to 2011, turned around from a -S$39 million operating deficit in the prior year. Subsidiary units also performed well on an operating basis in the year ended March 31: (SIA) Engineering's operating income of +$136 million was widened from a +$110 million profit in (FY) 2009 to 2010; (SIA) Cargo (SQC)'s operating profit of +$151 million reversed a -S$145 million operating loss in the previous year; and SilkAir (SLK)'s +S$121 million in operating income more than doubled a +S$49 million prior-year operating profit.
(SIA)'s (FY) 2010 to 2011 passenger traffic increased +2.3% year-over-year to 84.8 billion (RPK)s on a +2.3% rise in capacity to 108.06 billion (ASK)s, producing a load factor of 78.5% LF, barely changed from 78.4% LF in the prior year. Passenger yield heightened +14.4% to S$0.119. (CASK) rose +3.5% to S$0.089.
(SIA) retired a 747-400 during the March quarter and as of March 31 its fleet numbered 108 passenger airplanes, comprising 7 747-400s, 66 777s, 19 A330-300s, 11 A380-800s and 5 A340-500s. In the current fiscal year, it expects to take delivery of 8 A380-800s and decommission 5 777s and all 7 of its 747-400s. "The net decrease of 4 airplanes will bring the operating fleet to a total of 104 airplanes by March 2012," (SIA) noted. "The reduction in fleet size will be more than offset by increased utilization to produce passenger capacity growth of +6%" in the current fiscal year compared to (FY) 2010 to 2011.
Looking ahead, (SIA) said, "The twin challenges of near term weakness in load factors and high fuel prices will adversely affect the operating performance of airlines. (SIA) will be vigilant in cost management and closely monitor patterns of demand and adjust capacity accordingly."
A320-232 (4701, 9V-SLN), ex-(D-AUBE) delivery.
June 2011: Singapore Airlines (SIA) will launch 3x-weekly, Singapore (SIN) - Kolkata (CCU) service on August 1; its regional subsidiary, SilkAir (SLK) will launch 4x-weekly, (SIN) - (CCU) service on the same day.
July 2011: SilkAir (SLK) will launch 3x-weekly, Singapore - Koh Samui A319 service on September 27. It will also increase Singapore service to Chengdu (3x-weekly to daily) and Chongqing (3x-weekly to 5x-weekly) between October 30 and March 24.
November 2011: SilkAir (SLK) is a regional and international airline operating scheduled passenger services from Singapore to some 26 destinations in Cambodia, China, India, Indonesia, Malaysia; Myanmar; Philippines; Thailand, and Vietnam. Charter flights are also undertaken.
Employees = 944.
(IATA) Code: MI - 629. (ICAO) Code: SLK (Callsign - SILKAIR).
Parent organization/shareholders: Singapore Airlines (SIA) Group (100%).
Alliances: Garuda Indonesia Airways (GIA); Malaysia Airlines (MAS); S7 Airlines (SBR); and Singapore Airlines (SIA).
Main Base: Singapore Changi Airport (SIN).
International, Scheduled Destinations: Balikpapan; Cebu; Chengdu; Chiangmai; Chongqing; Coimbatore; Danang; Davao; Kaohsiung; Kathmandu; Kochi; Kota Kinabalu; Kuantan; Kunming; Langkawi; Lombok; Manado; Medan; Palembang; Phnom Penh; Phuket; Shenzhen; Siem Reap; Singapore; Solo City; Surabaya; Thiruvananthapuram; Xiamen; & Yangon.
January 2012: SilkAir (SLK) will serve Darwin, Australia and Wuhan, China. The new Darwin service follows the new joint venture (JV) being formed between Singapore Airlines (SIA) and Virgin Australia (VOZ), which itself will start flying to Darwin from Sydney in an effort to feed the new SilkAir (SLK) flights. (SIA) and (VOZ) began frequent flier cooperation last month.
February 2012: Singapore Airlines (SIA) parent, the (SIA) Group reported a net profit of +S$374 million/+$298.2 million for the 1st nine months of its April 1 - March 31 fiscal year, down -59% from +S$921 million in net income in the year-ago period.
Results were not much better for the fiscal 3rd quarter ended December 31, for which (SIA) posted a +S$153 million net profit, down -53% year-over-year.
(SIA) said that "persistently high jet fuel prices adversely affected the Group's performance." (SIA) is not optimistic about the current quarter. "Forward bookings continue to show signs of weakness in the final quarter of the financial year, due to uncertainty in the global economy and the protracted Eurozone debt crisis," (SIA) stated. "Passenger yields are expected to remain under pressure, while cargo yields are expected to continue to decline. As the price of jet fuel remains high and volatile, fuel costs continue to adversely impact the Group's financial performance."
(SIA)'s fiscal 9-month revenue rose +2% to S$11.15 billion, while expenditures increased by +10% to S$10.86 billion "principally on account of higher jet fuel prices," (SIA) said. 9-month operating profit fell -74% to +S$814 million.
Fiscal 3rd-quarter operating profit was +S$159 million, down -69% year-over-year. Breaking down (SIA)'s fiscal 3rd quarter by subsidiary, (SIA) earned a +S$137 million operating profit, down -64% (owing mainly to a +34% rise in airplane fuel costs); (SIA) Engineering posted a +S$28 million operating profit, down -17.6%; regional SilkAir (SLK) reported a +S$32 million operating profit, down -28.9%; and (SIA) Cargo (SQC) incurred an operating loss of -S$40 million, reversed from a +S$48 million operating profit in the 2010 December quarter.
(SIA) mainline passenger traffic rose just +2.5% year-over-year for the nine months ended December 31 to 65.64 billion (RPK)s on a +5.3% lift in capacity to 84.83 billion (ASK)s, producing a load factor of 77.4% LF, down -2.1 points. Nine-month passenger yield was flat year-over-year at S$0.119.
April 2012: SilkAir (SLK) will launch 3x-weekly, Singapore - Hanoi service on June 5.
May 2012: Silkair (SLK) has asked Bombardier (BMB) and Embraer (EMB) to provide proposals for the C Series and E190/E195 families of airplanes according to reports by the "Business Times." It currently operates 6 A319-100s and 15 A320-200s, but apparently sees a market for regional routes from Singapore Changi International (SIN) it cannot profitably serve with its Airbus (EDS) narrow bodies.
July 2012: SilkAir (SLK) will adjust Singapore service to Wuhan (3x-weekly to 4x-), Chiang Mai (3x-weekly to 4x-), Hyderabad (8x-weekly to 9x-), Changsha (4x-weekly to 3x-) and Pekanbaru (5x-weekly to 4x-) October 28 - March 30.
August 2012: Singapore Airlines (SIA) regional affiliate SilkAir
(SLK) announced that Leslie Thng has been named its new (CEO), replacing Marvin Tan, who will return to (SIA) as Senior VP Cabin Crew. The changes will become effective September 3.
Thng joined (SLK) as a board director on April 1 and is currently (SIA)’s VP Network Planning. He has been with (SIA) for >13 years.
(SLK), which now has an all-Airbus (EDS) fleet, has moved in a different direction with a letter-of-intent (LOI) to purchase 23 Boeing (TBC) 737-800s and 31 737 MAX airplanes valued at $4.9 billion at list prices. The (LOI) also includes 14 options and gives (SLK) the ability to switch among variants within the 737 product line.
“The order is the largest in (SLK)’s history and remains subject to the negotiation of a final purchase agreement,” (SLK) said. “Deliveries are due to begin in 2014 and continue to 2021, by which time (SLK)’s fleet will have >doubled in size.” The airplanes will be used both to replace older A320 family airplanes and to grow capacity.
Boeing (TBC) confirmed the (LOI) and said it “looks forward to finalizing” the deal - - SEE ATTACHED - - "SLK-2012-08 - 737 ORDER."
September 2012: SilkAir (SLK) begins flying to Visakhapatnam, India next month, being (SLK)'s 8th city in India, or 11th, including its parent, Singapore Airlines (SIA).
A320-232 (5296, 9V-SLQ), ex-(D-AXAN), delivery.
October 2012: SilkAir (SLK) inaugurated flights on its 8th Indian route on October 28. (SLK) now flies 3x-weekly from Singapore (SIN) to Vishakhapatnam (VTZ) airport, a large port city on the eastern coast of India. All flights on the 2,900 km route across the Bay of Bengal are operated using (SLK)’s fleet of A319s.
November 2012: Singapore Airlines (SIA) regional affiliate, SilkAir (SLK) has finalized an order for 54 737s and 737 MAX 8s, worth $4.9 billion at list prices. The previously announced letter of intent (LOI), comprising 23 737-800s and 31 737 MAX 8s, begins (SLK)’s fleet transition to Boeing airplanes. This is the largest airplane order in (SLK)’s history.
(SLK) (CEO) Leslie Thng said the 737s will enable (SLK) to fly to “more destinations and increase capacity on existing routes.”
January 2013: Parent, Singapore Airlines (SIA), under (CEO) Goh Choon Phong, has been transformed from a carrier focused on the premium segment to an airline group with a range of brands for different market segments. No longer content to be reliant on the slow-growing premium business, the group aims to tap into all market segments with its portfolio: (SIA) mainline (premium), SilkAir (SLK) (premium short-haul), Tiger Airways (TGR) (low-cost short-haul) and Scoot (SCT) (low-cost medium-haul). Tiger (TGR) and Scoot (SCT) plan to add airplanes this year, as does (SLK). In terms of route expansion, China will be a key focus for the group in 2013. It may also look to strengthen relations with Star (SAL) Alliance partner, Air China (BEJ) as another means of accessing China.
February 2013: Singapore Airlines (SIA) parent, the (SIA) Group said its net profit rose +6% year-over-year to +S$143 million/+$115.4 million for its fiscal 3rd quarter ended December 31. It attributed the increase to the sale of airplanes, spares and spare engines, and higher net interest income, partially offset by a $20 million provision by (SIA) Cargo (SQC) related to air cargo price-fixing.
Group revenue fell -0.4% year-over-year to S$3.86 billion, largely due to lower cargo revenue and poorer loads, it said. Group operating profit fell -36.5% year-over-year to +S$87 million.
(SIA) Engineering saw a +10% rise in operating profit to +S$31 million, while regional affiliate (SLK) recorded a +6.3% increase to +S$34 million and (SIA) Cargo (SQC) recorded an operating loss of -S$29 million, improved from its -S$40 million loss in the year-ago period. “The outlook for international air travel demand continues to be challenging and the cargo market remains depressed amid the troubled European economy and the weak recovery in the USA,” the Group said. “Loads and yields of both passenger and cargo businesses are expected to remain under pressure. To maintain market leadership, the Group will continue to invest in product and service offerings.”
It anticipates the previously announced sale of its 49% stake in Virgin Atlantic (VAA) to close in the 4th quarter, from which it expects to record a gain of +S$322 million, not including selling expenses.
May 2013: Silkair (SLK) adds its 10th and 11th Indonesian destinations: Semarang and Makassar. (SLK) will begin 3x-weekly, Singapore - Semarang (July 29) and -Makassar (August 1) with A319s/A320s.
Singapore Airlines (SIA) will take over 2x-daily, Singapore - Surabaya flights from subsidiary, (SLK), with A330s on July 26. (SIA) will also add a 9th daily service to Jakarta, and 4th daily to Denpasar.
Competition in the Indonesia - Singapore market will intensify in the 3rd quarter 2013 with (SIA) adding capacity while its regional subsidiary, (SLK) and low-cost carrier (LCC) affiliate Tiger Airways (TGR) each launch services to 2 new Indonesian destinations. Garuda Indonesia (GIA), (TGR) affiliate Mandala Airlines (MND) and Jetstar Asia (JSA) are all planning to follow (SIA), (SLK) and (TGR) in adding capacity in the dynamic Indonesia - Singapore market.
The surge in capacity is in part made possible by a newly expanded bilateral agreement between the 2 countries. Slot constraints threaten to impede growth for some carriers operating in the market and make it difficult to use newly awarded traffic rights. For example, Indonesia AirAsia (AWR) has already been set back by slot constraints at Changi Airport in attempts to launch 3 new routes to Singapore.
July 2013: SilkAir (SLK) commenced operations on the 1,200 km route from its Singapore (SIN) base to Semarang (SRG) in Indonesia on July 29. 3x-weekly flights are offered on the route using A320s, and competition is provided by Indonesia AirAsia (AWR)’s 6x-weekly services. (SLK) now serves a total of 11 points in Indonesia from Singapore.
August 2013: SilkAir (SLK) continued to expand its offering in Indonesia with the launch of services from its Singapore (SIN) base to Ujung Pandang (UPG) on August 1st. The 1,900 km route, which was last operated in March 2003, is offered with 3x-weekly frequencies using A320s. (SLK) faces competition on the route from Indonesia AirAsia (AWR), which operates a 4x-weekly schedule between the 2 airports.
September 2013: SilkAir (SLK) plans to launch 3x-weekly Singapore - Yogyakarta service on November 25, using A320 family airplanes. Yogyakarta is (SLK)'s 12th Indonesian destination after launching services to Semarang and Makassar on July 29 and August 1st, respectively, (SLK) says. Schedules show that SilkAir (SLK) will compete with Indonesia AirAsia (AWR) and Tigerair (TGR) on the Singapore - Yogyakarta route.
Singapore - Indonesia has emerged as 1 of the world’s fastest growing markets with capacity up +40% year-over-year. While capacity increases on the 2 largest routes connecting the 2 countries (Singapore to Jakarta and Bali) have captured most of the attention, secondary routes are growing even faster.
The 3rd and 4th largest Indonesian destination from Singapore, Surabaya and Medan, will see capacity nearly double in November 2013 compared to November 2012. To the 10 other smaller Indonesian destinations served from Singapore, capacity is increasing by a collective +78%.
Low Cost Carrier (LCC) group Tigerair (TGR) has quadrupled its Singapore - Indonesia operation over the last year, growing its share of capacity in the process from about +4% to +15%. (TGR) now serves 8 Singapore - Indonesia routes, up from only 2 a year ago.
AirAsia (ASW) has a 17% share and also now serves 8 Singapore - Indonesia routes, up from 4 a year ago, although its capacity has increased a more modest +34% from a much higher base. The Singapore Airlines (SIA) Group is the market leader with a 31% share and will soon serve all 14 routes as regional subsidiary (SLK) has added 3 Indonesian destinations.
November 2013: SilkAir (SLK) has made Yogyakarta (JOG) its 12th destination in Indonesia, with the launch on November 25th of 3x-weekly flights from Singapore (SIN) on the 1,240 km route. A mix of A319s and A320s will be used on the route. “We chose Yogyakarta because it’s a tourism destination with potential for high passenger volume,” said (SLK) (CEO) Leslie Thng who was on Monday’s maiden flight. As a tourism destination, Yogyakarta has incredible attractions for visitors from various countries. Among the tourist attractions are Borobudur and Prambanan temples designated by (UNESCO) as world heritage sites. The route is already served by Indonesia AirAsia (AWR) and TigerAir (TGR), both operating daily flights.
January 2014: With 25 years in the air under its wing, SilkAir (SLK), the regional wing of Singapore Airlines (SIA), will be celebrating its Silver anniversary this year. Marking its anniversary celebrations, (SLK) will be taking delivery of the 1st airplane in its new fleet of 54 737s in early February 2014.
A total of 8 planes are expected this year, with the remaining airplanes to be delivered by the end of this decade. This delivery will enable (SLK) to maintain a young and modern fleet, and cater for (SLK)'s continued network expansion plans by significantly growing its existing fleet. With the new airplanes, several enhancements will be offered to improve the in-flight experience for travelers including upgraded cabin interiors with more spacious overhead luggage compartments and lighting systems.
In addition to the milestone airplane delivery, (SLK) will roll out a host of surprises and celebrations for their avid Asian traveller target. For starters, to rally consumers and involve them in (SLK)'s historic Boeing delivery, the airline will bring fans and aviation lovers together to virtually deliver the new airplanes to Singapore. Tracking the actual delivery route, from the Boeing Renton factory in Seattle to Singapore's Changi Airport via Honolulu, Majuro and Guam, the "Bringing Boeing Home with SilkAir" program is Asia's 1st 25-hour flight simulator event that will allow up to 150 selected members of the public to fly a simulator (SLK) 737-800 plane into Singapore. The event will take place overnight from 7th to 8th February 2014 at Flight Experience Singapore, located at the Singapore Flyer.
(SLK) travellers will also be rewarded through special promotional deals where 250,000 tickets will be made available at special rates for consumers in Singapore and across the region.
The demand for flight travel in Asia-Pacific continues to rise, presenting vast opportunities for growth. The 737-800 delivery allows (SLK) to tap into the growing demand and explore the opening of routes across Asia for our travellers. To meet the need for more crew and pilots (FC) with the right skills to operate and run the 737 fleet, (SLK) has invested in conversion training at Singapore's Boeing Flight Services Training Centre to equip existing staff with the skills needed for the transition.
The 1st airplane is planned to enter service from February 20th 2014, flying to destinations including Kuala Lumpur, Penang, Phuket, and Medan, while the arrival of the second plane will allow the addition of other routes for the new airplanes including Siem Reap, Danang, Davao, Cebu, and Kochi from March 17, 2014.
Since its inception, (SLK)'s network has expanded to cover 45 exotic destinations in 12 countries across the region. A full-service carrier that offers services and features that ensure enjoyable and reliable travel experiences, (SLK) has maintained a strong position in the intra-Asian market and is already Asia's most awarded regional airline, with recent titles such as "Regional Airline of the Year" (Air Transport News 2013 Awards) as well as the (TTG) Asia Travel Awards Hall of Fame to its name.
As the regional wing of (SIA), (SLK) operates the Singapore Airlines Group's narrow body fleet and extends the Group network by seeding and developing new, exciting destinations in the Asia Pacific.
(SLK) took to the skies in February 1989 as "Tradewinds the Airline," before evolving into (SLK) in 1992. In its early days, (SLK) catered to passengers holidaying in exotic destinations in the region, including Phuket and Tioman. As (SLK) developed, regional business destinations such as Phnom Penh, Yangon, and Kuala Lumpur were added.
Today, the full service airline operates >300 weekly flights to 45 destinations in 12 countries. Latest additions to the network include Hanoi (June 2012), Visakhapatnam (October 2012), Semarang (July 2012), Makassar (August 2013), and Yogyakarta (November 2012). (SLK) currently has a fleet of 24 Airbus airplanes, comprising 6 A319s and 18 A320s. In August 2012, (SLK) announced the largest order in its history of up to 68 737s, with firm orders comprising 23 737-800s and 31 737 MAX 8s.
February 2014: SilkAir (SLK)'s 25th anniversary.
Singapore Airlines (SIA) regional affiliate, SilkAir (SLK) has taken delivery of its 1st Boeing 737-8SA (SEE ATTACHED - - "SLK-737-8SA-2014-02 TRANSITION," marking the start of (SLK)’s transition to an all-Boeing (TBC) fleet. Over the coming years, Boeing (TBC) will deliver a total of 23 737-800s and 31 737 MAX 8s to (SLK).
(SLK) (CEO) Leslie Thng said the new 737 airplane “will support our network expansion plans. The transition to an all-Boeing (TBC) fleet will enable us to efficiently serve more destinations, fly longer routes and increase capacity on existing routes.”
(SLK)’s new 737 will enter service later this month, flying to existing destinations, including in Malaysia, Thailand, and Indonesia. With the follow-on 737 deliveries, (SLK) will fly the airplanes to more destinations in Cambodia, Vietnam, India, and the Philippines starting in March.
March 2014: 737-8SA (44218, 9V-MGB), delivery.
April 2014: 737-8SA (44219, 9V-MGC), delivery.
May 2014: Singapore Airlines (SIA)regional affiliate SilkAir (SLK) has retired 2 Airbus 320 airplanes, marking the next phase of its transition from an all-Airbus (eds) to an all-Boeing (TBC) 737 fleet.
(SLK) took delivery of its 1st 737-800 in February, and currently has 3 in the fleet, which also includes 16 A320s and 6 A319s. 8 Boeing airplanes are expected to join the fleet this year, with the remaining airplanes to be delivered by 2020.
The original airplane order, finalized in November 2013, was for 23 737-800s and 31 737 MAX 8s, scheduled for delivery by the end of the decade when all the Airbus airplanes will have been retired.
“Airbus and Boeing are both well-established players in the narrow body airplane market. After careful deliberation and consideration of each manufacturer's proposal, Boeing’s proposal was a better fit for (SLK)'s overall requirements.”
June 2014: SilkAir (SLK) has added Mandalay (MDL) in Myanmar to its network from Singapore (SIN). On June 10th, the Singapore Airlines subsidiary launched 3x-weekly flights on the 2,430 km route, which it operates via Yangon on the outbound service. (SLK)’s A320s will operate the flights, which face no direct competition. The 2nd largest city in Myanmar, Mandalay is the centre of culture and religion in the country. The city is home to the magnificent royal palace as well as many other attractions built during the Konbuang Dynasty. Bagan, long considered one of the world’s greatest archaeological sites, is also accessible through Mandalay.
July 2014: SEE ATTACHED - - "SLK-2014-07-UPDATE-A/B/C/D/E."
SilkAir (SLK) has made Hangzhou (HGH) its 8th destination in China with the introduction on June 27th of 4x-weekly flights from Singapore (SIN). The 3,630 km route is served by (SLK)’s A320s and faces competition from Jetstar Asia (JSA) who operate the route with 5x-weekly flights. Leslie Thng (CEO) of SilkAir (SLK) said: “The launch of services to Hangzhou, reaffirms SilkAir (SLK)’s commitment to continue to grow our network in China, which is one of our key markets. Hangzhou is a city that attracts both the leisure and business traveller and we believe that our new service will certainly benefit them.” (SLK) 1st began serving China in 1993, and also operates flights to Changsha, Chengdu, Chongqing, Kunming, Shenzhen, Wuhan, and Xiamen.
August 2014: Net profits for Singapore Airlines parent, the (SIA) Group fell -71.4% year-over-year during its fiscal-1st-quarter ended June 30. (SIA) reported a 1st-quarter net profit of +SGD35 million/+$28 million, down -SGD87 million from the year-ago-quarter.
The (SIA) Group’s 1st-quarter revenue fell -4.1% year-over-year to SGD3.7 billion. Operating expenses fell -3.1% year-over-year to SGD3.6 billion, resulting in an operating profit for the quarter of +SGD39.5 million, down -51.7% year-over-year.
(SIA) reported a fiscal-1st-quarter operating profit of +SGD45 million, down -49.4% year-over-year from +SGD89 million in operating profit (SIA) reported in the 2014 June quarter; (SIA) Engineering made +SGD21 million in operating profit, down -25% year-over-year from last year’s +SGD28 million; regional airline SilkAir (SLK) posted +SGD2 million in operating profit, down -85.7% year-over-year from the year-ago-quarter’s +SGD14 million; and (SIA) Cargo (SQC) reported a -SGD18 million loss, narrowed from a -SGD40 million loss the air freight carrier posted a year-ago.
Revenue decline was due to “weaker yields amid intense competition, and unforeseen events that depressed travel demand in some key Asian markets,” (SIA) said. “(SIA) Cargo (SQC) recorded lower revenue as the air freight market continued to be affected by excess capacity.”
“In addition to the weaker operating performance, results from associated and joint venture (JV) companies [down -32% (YOY)] also contributed to the decline in net profit,” (SIA) said. “Share of losses [by] associated companies increased by SGD16 million from last year, of which SGD14 million was attributed to Tiger Air (TGR) Holdings. The share of profits [by] joint venture (JV) companies [was] reduced by SGD11 million, mainly [attributable to] weaker performance from the engine repair and overhaul centers.”
For the 1st fiscal quarter, parent airline company, (SIA) reported +1.8% year-over-year passenger growth, carrying 4,652,000 passengers. (RPK)s were up +0.4% to just shy of 24 billion, while (APK)s grew +0.8% to 30.3 billion. Passenger load factor fell -0.3 point to 77.7% LF during the quarter. Passenger yield fell -1.8% to 10.9 cents.
(SLK)’s 1st-quarter passenger count was 870,000, up +0.7% year-over-year. (RPK)s were up +2.6% year-over-year to 1.4 billion; capacity grew +2.8% year-over-year to 2 billion (ASK)s. (SLK)’s resulting passenger load factor for the quarter came to 69.5% LF, a -0.1 point drop from last year’s 1st-fiscal-quarter. Passenger yield fell -5.7% to 13.3 cents.
(SIA) Cargo (SQC)’s freight traffic was 1.56 billion (CTK)s during the quarter, a -3.5% drop from the year-ago-quarter’s 1.62 billion (CTK)s. (SQC)’s capacity kept pace, also falling -3.5% year-over year to 2.5 billion tonne-km. Cargo load factor came to 62.4% LF, -0.1 point year-over-year drop. “The outlook for the air transportation industry has become more challenging with [the] continuing uncertain global economic climate, geo-political concerns in the region and elevated fuel prices,” (SIA) said. “In this difficult operating environment, the Group will continue to monitor demand trends closely and make appropriate adjustments to capacity deployment, alongside a continued focus on cost discipline.”
As of June 30, (SIA) fleet consisted of 103 airplanes (57 Boeing 777s, 27 Airbus A330-300s and 19 A380-800s). (SLK)’s fleet comprised 26 airplanes (16 A320-200s, 6 A319-100s and 4 737-800s). (SIA) Cargo (SQC) has a fleet of 8 747-400Fs. The (SIA) Group’s low-cost-carrier (LCC) subsidiary, Scoot (SCT) maintains a fleet of 6 777-200s.
November 2014: News Item A-1: The Singapore Airlines Group reported a net profit of +SGD126 million/+$97.5 million for the half year ended September 30, down -55.5% from the +SGD282.4 million reported for the same period in the previous financial year.
The airline group said its net profit had been severely affected by associates’ losses, and acknowledged that passenger yields remain under pressure, leading to a largely flat first half operating result.
The group’s operating profit was up +1.2% for the 1st half of the 2014 - 2015 financial year, reaching SGD171 million from SGD167 million year-over-year.
However, group revenue fell -2% to SGD7.6 billion, with passenger revenue down -0.4% despite a -1.4% increase in traffic. The competitive operating environment and depreciating revenue-generating currencies helped push yield down -1.8% year-over-year.
Cargo revenue declined -1.6%, driven by a -3.8% capacity cut, although this was partially compensated by better yields and higher load factor.
On a positive note, group expenditure was down -2.1% to SGD7.4 billion, with falling fuel costs a major contributor.
Singapore Airlines (SIA)’s operating profit fell -1.6% during the first half to SGD183 million. Revenue was down -2.4%, but was nearly offset by a -2.4% reduction in expenditure, due to lower fuel costs after hedging and stringent cost management.
Passenger numbers grew +1% to 9.5 million, with (RPK)s up a scant +0.12% to 48.52 billion. (ASK)s dipped slightly -0.15% to 60.83 billion. Passenger load factor was up +0.25% to 79.8% LF for the first half year.
(SIA) Engineering’s operating profit fell -33.9% in the half year to +SGD37 million. Total revenue fell -0.7% as a result of lower airframe and component overhaul revenue, while expenses increased +2.8%, primarily as a result of an increase in subcontract services.
(SIA)’s regional affiliate (SLK) reported its operating profit plunged -77.3% to +SGD5 million, as weaker yields (-5%) put a drag on revenue and a +3.7% capacity injection pushed up operating expenditures.
Passenger numbers increased +2.4% to 1.73 million, with (RPK)s up +4% to 2.84 billion. (ASK)s were up to 4.08 billion from 3.93 billion in the year-ago period. Passenger load factor improved +3.8% to 69.7% LF.
(SIA) Cargo (SQC)’s operating loss narrowed to -SGD34 million from -SGD71 million for the same period last year. Improved capacity management saw yields improve +1.9%, while load factor was up +0.2% points.
The outlook remains “competitive and challenging, as an uncertain global economic climate and geopolitical concerns persist,” the airline group said. “Demand is generally flat, and yields will remain under pressure amid intense competition from other airlines and promotional activities in weaker markets.”
“While there has been a reprieve from cost pressures arising from the decline in fuel prices in recent months, there is concern that the decline reflects a slowdown in major economies in the world, which could ultimately hurt travel demand. The group will continue to track market movements closely and make appropriate adjustments to capacity, while practicing cost discipline in all business areas. With a strong balance sheet, the group is well positioned to meet the challenges ahead,” it said.
News Item A-2: SilkAir (SLK) begins daily, Singapore - Denpasar service on December 12.
(SLK) will start 3x-weekly, Singapore - Cairns Boeing 737-800 service on May 30, 2015.
August 2015: News Item A-1: Scoot (SCT) will take over the 4x-weekly Hangzhou route, which is currently served by its regional affiliate, SilkAir (SLK), from October 25.
From December 1, (SCT) will use its new Boeing 787-8 airplanes on the route and increase frequency to 5x-weekly.
Hangzhou will be (SCT)’s 5th destination in China. (SCT) serves second tier cities at Tianjin, Shenyang, Qingdao, and Nanjing using 787s.
According to SilkAir (SLK), the move comes as yields across the region are under pressure, and is an effort to “better optimize the utilization of the (SIA) Group’s resources and present a better match of capacity to demand.”
The Association of Asia Pacific Airlines (AAPA) Director General, Andrew Herdman noted recently that airlines across the region have been “carefully reviewing their route networks and matching capacity with the expected growth.”
The move by (SIA) to put more fuel-efficient, low-cost service provision aircraft on its medium-haul routes is a reflection of the route optimization trend as noted by Herdman. He said that as long as the regional operating environment remains highly competitive, carriers need to maintain “a disciplined approach to managing costs and ongoing investments in route development.”
(SCT) is already sharing what it calls “deep and wide-ranging cooperation” with (SIA)’s regional (LCC) offshoot, Tigerair (TGR), and has flagged even closer ties between the 2 budget carriers. “Both carriers operate highly complementary networks, with (SCT) focusing on medium long-haul routes, and Tigerair (TGR) focusing on shorter-haul journeys,” (SCT) (CEO) Campbell Wilson said.
SilkAir (SLK), which ordered 23 Boeing 737-800s and 31 737 MAX 8s in 2012, has a fleet of 28 Airbus and Boeing airplanes. It operates >350 scheduled weekly flights to 12 countries.
News Item A-2: SilkAir (SLK) is to launch a 4x-weekly service to the Maldives starting October.
(SLK) will operate the flights on weekdays, excluding Friday, and will complement its parent carrier's daily services to give 14 flights a week to Ibrahim Nasir International Airport, on Hulhule' Island, Maldives. It will use Airbus A320 aircraft for the new schedule.
Concurrently, 4 of Singapore Airlines (SIA)'s flights on the same route will be withdrawn, freeing up some of the parent carrier's Boeing 777-200 airplanes.
(SIA) said the move was to bring "network synergies [to] the 2 airlines, and provide customers more choice and more flexibility." It will also bring added presence to an expanding market that recently saw AirAsia (ASW) re-open a budget service to the island.
The new schedules will help cement Singapore as a jumping-off point for travelers to the island chain, as it is the only airline group currently offering direct Singapore - Maldives schedules, with other carriers only offering transit stopover services.
News Item A-3: Boeing (TBC) said it has recorded +6 new orders for 737-800 jets from Singapore's SilkAir (SLK).
February 2016 News Item A-1: Singapore Airlines (SIA) group reported a net profit rise of +35% to +S$275 million/+$196 million for the three months through December 31, 2015, compared to a net profit of +S$202.6 million in the year-ago quarter. (SIA) cited lower fuel costs and a significant performance improvement from some of its subsidiary carriers for the profit increase.
The higher profit was achieved despite revenue dropping by -3.9% due to weaker yields in the period, which is (SIA)’s fiscal third quarter. Passenger yields fell -4.6% and cargo yield declined by -13.5%.
Cost savings were enough to overcome the revenue slide, however. Net fuel costs were down by -S$354 million, with lower oil prices offset somewhat by hedging losses of -S$72 million and -S$77 million in losses related unfavorable exchange rate movements.
The group’s operating profit more than doubled to +S$288 million for the quarter, with most of its subsidiaries boosting their results. The parent airline led the way with an operating profit of +S$181 million, thanks mainly to the fuel cost savings. Its passenger traffic rose +1% year-on-year with capacity dropping -1.2%.
Long-haul, low-cost carrier (LCC) subsidiary Scoot (SCT) achieved an operating profit of +S$18 million, reversed from a loss of -S$17 million a year earlier. (SIA) says this was Scoot (SCT)’s strongest-ever quarterly result. Although (SCT) grew capacity by +34% in the quarter, it boosted passenger traffic by +37%.
SilkAir (SLK) recorded an operating profit of +S$33 million, up from +S$18 million. Its capacity growth of +9.5% was not matched by traffic growth of +8.5%, however. Tiger Airways (TGR) also improved its operating profit to +S$9 million, versus +S$4 million in the same period in 2014.
(SQC) Cargo operating profit dropped to +S$2 million compared to +S$17 million a year earlier.
October 2016: News Item A-1: Singapore Airlines (SIA) reported a net profit of +64.9 million Singaporean dollars/+$46.9 million for the 3 months through September 30, down by -S$148.7 million year-on-year (YOY).
(SIA)’s operating profit dropped by -15.5% to S$109 million for the period, which was its fiscal 2nd quarter. A -S$174 million decline in costs was not enough to offset a -S$194 million fall in revenue.
The 2nd quarter was generally weaker than the results for the fiscal 1st half. (SIA)’s half-year net profit was +S$321.5 million, up +S$16.7 million from the same period a year earlier.
The mainline parent carrier saw passenger revenue decline -6.4% in the 1st half, with yield dropping -2.9% and load factor falling -1.9 points to 78.1% LF. Capacity was down -0.9%. Scoot (SCT) was once again the fastest-growing of the group airlines, with its capacity increasing +55.6% in the 1st half.
1st-half costs dropped by -4.6% for the group, mainly due to a -25.2% fall in net fuel costs. Costs excluding fuel rose +5.9%, partly due to capacity expansion by Scoot (SCT) and SilkAir (SLK).
Cargo revenue was down in the 1st half due to a -16.6% yield fall. The operating loss for the cargo division increased +S$33 million to -S$45 million. Cargo traffic actually increased faster than capacity growth, resulting in load factor rising +0.9 points to 61.6% LF.
News Item A-2: On October 14, Airbus (EDS) celebrated the delivery of its 10,000 aircraft, (an A350-900 for Singapore Airlines (SIA) out of a total order for 67). The airplane is to be used to launch (SIA)'s new non-stop services between Singapore and San Francisco later this month.
The 10,000th Airbus delivery comes as (EDS) achieves its highest level of production ever and is on track to deliver at least 650 aircraft this year from its extensive product line.
(SIA) placed its 1st order with Airbus (EDS) in 1979 and over the years (SIA) and its subsidiaries have ordered every successive model produced by Airbus (EDS) (for instance, (SIA) operates the A330, A350-XWB and A380, while its regional subsidiaries SilkAir (SLK) and TigerAir (TGR) operate aircraft from the single aisle A320 family).
April 2017: News Item A-1: Air France (AFA) - (KLM), Singapore Airlines (SIA) and the latter’s regional subsidiary SilkAir (SLK) have signed a memorandum of understanding (MOU) to code share on each other’s flights. The agreement is scheduled to become effective April 27, subject to regulatory approvals.
(AFA) will add its AF code to Singapore Airlines (SIA)-operated flights beyond Singapore to Melbourne and Sydney in Australia, as well as on SilkAir (SLK)-operated flights to Kuala Lumpur and Penang (Malaysia) and to Phuket (Thailand).
In return, (SIA) will add its SQ designator to (AFA)-operated flights beyond Paris Charles de Gaulle airport to 10 European destinations: Bordeaux, Lyon, Marseille, Nice, and Toulouse in France; Aberdeen, Edinburgh and Newcastle in the UK; Lisbon (Portugal) and Madrid (Spain). The agreement is intended to provide customers more options and seamless connectivity when traveling between Europe, SE Asia and Australia.
The development is the latest in a series of moves by (SIA) to enlarge or extend its portfolio of code share agreements with major carriers, including the Lufthansa Group, (SAS) Scandinavian Airlines and Russia’s (S7) (SBR) Airlines.
(AFA) and (SIA) also intend to explore the possibility of expanding the code share to other airlines within their respective groups. Also under consideration is the possibility of members of (AFA) - (KLM)'s "Flying Blue" and (SIA)’s "KrisFlyer" frequent flyer schemes earning points on the new code share sectors.
(AFA) - (KLM) Senior VP Alliances Patrick Roux said the agreement will “significantly improve the connections for (AFA) customers from Singapore to Australia. This kind of partnership is part of our aim to expand our market position and increase our range of destinations for our customers all around the world.”
Welcoming the “significant benefits” to passengers as a result of the new code share agreement, (SIA) Senior VP Marketing & Planning Tan Kai Ping said the agreement “provides a strong foundation for future commercial cooperation opportunities between our 2 airline groups.”
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SLK-737 MAX - 2012-08
SLK-737 MAX - 2012-11
SLK-747-4R7F 1203-29730 I-SWIB - 2017-09.jpg
4 +25 ORDERS 737-8SA (CFM56-7B) (44217, /14 9V-MGA, 2014-02; 44218, /14 9V-MGB; 44219, /14 9V-MGC; 44227, 9V-MGK, 2015-05), WITH WINGLETS. 12C, 150Y.
31/14 ORDERS (2015-07) 737 MAX (LEAP-1B), WITH WINGLETS:
4 A319-132 (V2524-A5) (1074, /99 9V-SBA; 1098, /99 9V-SBB; 1228, /00 9V-SBC; 1698, /02 9V-SBD; 2568, 9V-SBE, 2005-10; 3104, 9V-SBF, 2007-05). 1074; 1098; RTND. 6C, 120Y.
2 A319-133 (V2524-A5) (4215, /10 9V-SBG; 4259, /10 9V-SBH), 12C, 106Y.
2 A320-133 (V2524-A5) (4215, /10 9V-SBG; 4259, /10 9V-SBH), 12C, 106Y.
5 A320-232 (V2527-A5) (872, /98 9V-SLA; 899, /98 9V-SLB; 969, /99 9V-SLC; 1422, /01 9V-SLD; 1561, /01 9V-SLE; 2058, /03 9V-SLF). 872 RTND, TO (SIC) 2005-07. 16C, 126Y.
2 A320-232 (4701, 9V-SLN; 5296, 9V-SLQ), EX-(D-AUBE) 2011-05; EX-(D-AXAN) 2012-09.
7 +7/9 ORDERS A320-233 (V2527E-A5) (2252, /04 9V-SLG; 2517, /04 9V-SLH, 2005-07; 2775, 9V-SLI, 2006-05; 3570 /08 9V-SLJ; 3821, 9V-SLK, 2009-03; 4118, 9V-SLL, 2009-12; 4457, 9V-SLM, 2010-09; 9V). 16C, 126Y.
0 F 70, LSD, PHASED OUT 2000-04. 78 PAX.
1 SHORTS SKYVAN 3 (SH 1914), SINGAPORE AIR FORCE LSD.
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SLK-1-MARVIN TAN - 2012-09
MAK SWEE WAH, CHAIRMAN.
LESLIE THNG, CHIEF EXECUTIVE OFFICER (CEO), EX-(SIA) (2012-09).
MARVIN TAN, (CEO) (2010-10), EX-(SIA), RETURNED TO (SIA) AS SENIOR VP CABIN CREW (2012-09).
QUAY CHEW ENG, VP/CHIEF PILOT.
TAN SIAH JOO, VP OPERATIONS (SINEMMI).
DAVID LIM, VP COMMERCIAL.
GOH BOON HWEE, SENIOR MANAGER OPERATIONS.
LEY PHENG, FINANCE MANAGER.