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SQC-2006TOP WLD CARGO
SQC-2008-11 PORSCHE CAR CARGO
SQC-2009-01 WORLD TOP 10 CARGO 2008
Formed in 2000 and started operations in 2001. International, scheduled and charter, cargo, jet airplane services.
5th Floor, Core L,
SATS Airfreight Terminal 5
30 Airline Road
Singapore 819829, Singapore
Singapore (Republic of Singapore) was established in 1965, it is an island covering an area of 618 sq km, its population is 4 million, its capital city is Singapore, and its official language is English.
April 2001: SINGAPORE AIRLINES CARGO (SQC), A WHOLLY OWNED SUBSIDIARY, RECEIVES ITS OWN AIR OPERATIONS CERTIFICATE (AOC), AND WILL OPERATE INDEPENDENTLY AS A SEPARATE, ALL-CARGO AIRLINE IN JULY 2001. MICHAEL TAN, CHAIRMAN, SINGAPORE AIRLINES CARGO (SQC).
HAS 9 747-400F'S "MEGA-ARKS," WITH +8 ORDERS. EXPECTS TO GROW +10%/YEAR, FOR NEXT 5 YEARS.
June 2001: CREATES SINGAPORE AIRLINES CARGO DIVISION (SQC), AS A SEPARATE OPERATION FROM SINGAPORE AIRLINES PASSENGER DIVISION (SIA). THE DIVISION, WILL ALSO MARKET THE ENTIRE BELLY SPACE OF ALL ITS (SIA) PASSENGER AIRPLANES. (SQC) CARGO REPRESENTS 20% OF SINGAPORE AIRLINES GROUP REVENUES. EXPECTS TO GROW 9 747-400F'S TO 17 AIRPLANES OVER THE NEXT 5 YEARS. (SQC) CARGO WILL EMPLOY 650 EMPLOYEES, WITH 250 LOCATED IN SINGAPORE.
September 2001: 1 747-412F (26559, 9V-SFJ) DELIVERY.
November 2001: (SQC) CARGO TO DALLAS/FORT WORTH (DFW) & MUNICH (747-400F, 2/WEEK). (SQC) CARGO, AROUND-THE-WORLD, 2/WEEK, TO (DFW), VIA BRUSSELS AND BOMBAY.
February 2002: 1 747-400F DELIVERY.
MARCH 2002: NEW, GLOBAL CARGO VENTURE, WITH SCANDINAVIAN AIRLINES (SAS), AND LUFTHANSA CARGO (LUB), TO BE CALLED "WOW."
May 2002: 2001 Top World Cargo - Freight Traffic Billion (FTK):
1 FED 11.05; 2 LUB 7.08; 3 UPS 5.96; 4 SQC 5.88; 5 KAL 5.57; 6 AFA 5.12; 7 KLM 4.64; 8 JAL 4.19; 9 BAB 4.033; 10 CHI 4.030; 11 NCA 3.93; 12 CAT 3.89; 13 CLX 3.77; 14 EVA 3.28; 15 UAL 2.80; 16 NWA 2.79; 17 AAL 2.56; 18 MTH 2.40; 19 AAR 2.38; 20 DAL 2.31; 21 MAS 1.84; 22 SWS 1.79; 23 TII 1.67; 24 QAN 1.57; 25 AHK 1.55.
June 2002: Singapore Airlines (SQC) Cargo, moves its freighter operations from Shanghai Hong Qiao Airport to Pudong International Airport, and increases frequency to 4/week.
January 2003: In April 2003, Singapore Airlines (SQC) Cargo direct flights from China to USA, with Singapore - Xiamen and Nanjing, then on to Chicago (ORD) (747-400F, 3/week).
747-412F (32897, 9V-SFL) delivery.
February 2003: Cathay Pacific (CAT) Cargo, Japan Airlines (JAL) Cargo, Qantas Airways (QAN) Freight, & Singapore Airlines (SQC) Cargo signed an (MOU) to partner in a new e-business portal (working title is "Air Cargo Exchange") that is to go online by mid 2003. At the heart of the new portal will be a joint operation provided by the Cargo Community Network Singapore and Global Logistics System Hong Kong, also known as Traxon Hong Kong. Initially, customers will be able to make allotment and free-sale bookings, conduct tracking and tracing, as well as review flight schedules of the 4 carriers. Interestingly, (JAL) & (SQC) are also affiliates of the "WOW" cargo alliance, including (SAS) Cargo & Lufthansa Cargo (LUB). (CAT) & (QAN) are linked to the Oneworld (ONW) alliance.
March 2003: Next month, Singapore Airlines Cargo (SQC), Singapore - Adelaide (747-400F).
May 2003: Singapore Airlines (SQC) Cargo, Singapore to Xiamen and Nanjing, and on to Chicago (747-400F, 3/week). Also, from Chicago and Los Angeles, respectively, to Nanjing and on to Singapore (747-400F, 2/week).
June 2003: 2002 TOP 25 WORLD FREIGHT CARRIERS - BILLION - FTK:
1 (FED) 13.20; 2 (LUB) 7.16; 3 (UPS) 6.62; 4 (KAL) 6.25; 5 (SQC) 6.08; 6 (AFA) 4.87; 7 (CAT) 4.85; 8 (CHI) 4.60; 9 (JAL) 4.39; 10 (CLX) 4.16; 11 (BAB) 4.12; 12 (KLM) 3.99; 13 (EVA) 3.28; 14 (NWA) 3.24; 15 (AAL) 2.93; 16 (UAL) 2.79; 17 (AAR) 2.75; 18 (NCA) 2.21; 19 (POA) 1.97; 20 (EAD) 1.96; 21 (MAS) 1.92; 22 (BEJ) 1.88; 23 (TII) 1.824; 24 (DAL) 1.823; 25 (ACN) 1.58.
August 2003: Lufthansa Cargo (LUB) unveiled its 1st airplane in "WOW" livery, an MD-11F, representing the WOW Cargo alliance, encompassing Japan Airlines (JAL) Cargo, Lufthansa Cargo (LUB), Scandinavian Airlines (SAS) Cargo, and Singapore Airlines (SIA/SQC) Cargo. Has the biggest air cargo partnership with a 20% market share. Next month, will inaugurate an exclusive common cargo terminal in Cargo City North, Frankfurt, to handle alliance shipments. Each of the 4 cargo carriers since July 2003, has been setting up to 10% of each's capacity for the express shipments of the other 3 partners. They have agreed on a unified Information Technology (IT) support and common quality service and handling standards in order to guarantee the uniformity and reliability of their services.
October 2003: 747-412F (1052-26560, B-2409), leased to Air China (BEJ).
March 2004: 747-400F Mega Ark delivery for Singapore Airlines Cargo (SQC).
April 2004: 698 employees.
August 2004: Mercator implemented its Rapid Cargo revenue accounting system at Singapore Airlines Cargo (SQC).
14th 747-412F (1349-32900, 9V-SFO) Mega Ark delivery. Will enable more service to India and China starting next month. At the end of October 2004, Singapore - New Delhi - Brussels. Chennai - Brussels.
February 2005: Next month to add 2 destinations to Singapore Airlines Cargo (SQC) global network. (SQC) will start freighter service to newly opened Central Japan International Airport near Nagoya (2/week), and to Istanbul (2/week).
(SQC) operates a fleet of 14 747-400F's on a network that extends to 68 cities in 35 countries. +2 747-400F's to be delivered in 2005-09 & 2005-12.
July 2005: 741 employees.
September 2005: Scandinavian Airlines (SAS) Cargo is boosting capacity between Chicago and Copenhagen by 130 tons per week from Sept 22. Service will offered twice weekly via a blocked-space agreement using a 747-400F operated by Singapore Airlines Cargo (SQC).
(SQC) will increase the number of cargo flights using 747F freighters out of Copenhagen Airport from 5X to 9X weekly in early October. In addition, (SQC) is adding three new cargo destinations to and from Copenhagen - - New Delhi, Bangalore, and Chicago.
Boeing (TBC) is moving closer to the launch of the 747-400 ADV with the announced sale of four 747-400Fs to Nippon Cargo Airlines (NCA). According to insiders at (TBC), the next delivery slots are 747-400 ADV airplanes. This year, (TBC) has sold 24 747-400s and now has a backlog of 30 net of five cancellations logged in 2005.
Cargolux (CLX) has announced its intention to order 10/20 747-400F ADV freighters. Other carriers identified with the program are China Airlines (CHI), Malaysia Airlines (MAS), Japan Airlines (JAL), Singapore Airlines Cargo (SQC), and British Airways (BAB).
October 2005: 747-412F (32902, 9V-SFP), delivery.
November 2005: Singapore Airlines Cargo (SQC) is boosting its services to India and the USA. This follows the delivery of the airline's 15th 747-400F Freighter. (SQC) introduced a Singapore - Delhi - Copenhagen - Chicago twice weekly service on October 29th. With this, the frequency of service to Chicago increased from 5 to 7 flights a week. Frequency to India also increases by 2 flights a week with 10 flights operating to India continuing to Europe and the USA and with 9 flights from India to Singapore.
January 2006: Full year 2005 = Freight traffic 7.60 Billion (FTK) (+6.5%).
February 2006: Record revenues were not sufficient for Singapore Airlines (SIA) Group to stave off soaring fuel costs during the fiscal third quarter ended December 31 as the company reported a +S$396.6 million/+$244 million net profit that represented a -14.6% decline from net earnings of +S$464.6 million in the year-ago period.
The latter total was boosted by the sale of (SIA)'s remaining stake in Star Alliance (SAL) partner, Air New Zealand (ANZ). Numbers from the 2004 - 2005 fiscal year were recalculated according to new national accounting standards.
The (SIA) Group posted record revenues of +S$3.56 billion during the quarter, an improvement of +11.1%. Expenses rose +14.1% to S$3.18 billion and operating profit dipped -9.1% to +S$374.7 million. The expense increase was due to a +49.2% jump in jet fuel cost to S$1.18 billion, or 37.2% of total spending. Fuel accounted for 28.4% of expenses in the year-ago quarter. (SIA) also said that less favorable exchange rates lowered operating profit by -S$66 million.
The carrier flew 21.12 billion (RPK)s passenger traffic during the quarter, an increase of +4.1%. Capacity climbed +3% to 27.57 billion (ASK)s and load factor rose +0.9 point to 76.6% LF. Yield went up +5.9% to 10.8 cents. Cost per (ASK) grew +7% to 7.6 cents, but declined -12.5% excluding fuel. Singapore Airlines Cargo (SQC) reported a +9.7% increase in (FTK)s, a +5.3% rise in capacity and a 66.6% LF load factor, up +2.7 points. Yield climbed +6.8% to 40.6 cents.
For the nine-month period, (SIA) Group's net profit fell -8.6% to +S$974.4 billion. Revenues rose +10.8% to S$9.95 billion, expenses shot up +13.2% to S$9 billion and operating profit decreased -7.4% to +S$958.4 billion.
747-412F (32901, 9V-SFQ), delivery.
May 2006: Singapore Airlines (SIA) appointed Senior VP, Finance, Goh Choon Phong as President of Singapore Airlines Cargo (SQC), effective June 1. He replaces Hwang Teng Aun, who will become Senior VP-Marketing (Special Projects). Divisional VP Finance, Chan Hon Chew will replace Goh.
Great Wall Airlines (GWZ) is a joint cargo venture between Singapore Airlines (SIA)/(SQC) and Beijing-based China Great Wall Industry, which launched cargo jet airplane services with a 747-400F, (SQC) wet-leased. Intends to fly to points in the USA, Europe, and within Asia. Parent organization/shareholders: China Great Wall Industry (51%); Singapore Airlines (SIA) (25%); Dahlia Investments (Temasek Holdings) (24%). Main Base: Beijing Capital (PEK).
Singapore Airlines Cargo (SQC) began twice-weekly, Singapore - Nanjing - Tianjin - Anchorage - Los Angeles (LAX) - Shanghai - Singapore cargo flights using 747Fs. The new routing brings weekly Singapore - (LAX) freighter flights to 12.
747-412F (28263, 9V-SFE), wet-leased to (GWZ).
July 2006: Singapore Airlines Cargo (SQC) named Singapore Airlines (SIA) Executive VP-Marketing and the Regions, Huang Cheng Eng as Chairman & Director effective August 1. Huang joined (SIA) in 1974.
October 2006: Singapore Airlines (SIA) Group reported a net profit of +S$293.2 million/+$186.7 million for its fiscal second quarter ended September 30, down -14.6% from a +S$343.2 million profit in the year-ago quarter, a decline the company attributed to "higher fuel cost."
(SIA) said in a statement that demand "is expected to remain buoyant" but cautioned that "the price of jet fuel is still volatile and remains high."
Second-quarter revenues rose +7.7% to S$3.61 billion while expenses climbed +10.9% to S$3.35 billion, producing operating income of +S$259.4 million, narrowed -21.5% from operating income of +S$330.6 million in the year-ago quarter. Fuel spending jumped +27.4% to S$1.33 billion, more than double the next-highest expenditure, staffing, on which the carrier spent S$634.8 million. (SIA) pointed out that it spent S$2.56 billion on fuel for the six months ended September 30, an increase of +31.9% over the year-ago semester. Fuel accounted for 39.4% of total expenditures in the six-month period.
Second-quarter passenger traffic grew +5.9% to 22.57 billion (RPK)s on a +2.9% lift in capacity to 28.41 billion (ASK)s, producing a load factor of 79.4% LF, up +2.2 points. Yield increased +2.9% to S10.8 cents.
Singapore Airlines Cargo (SQC) traffic was ahead +2% to 1.98 billion (FTK)s on a +1.2% rise in capacity to 3.15 billion (FTK)s. Cargo load factor was 62.9% LF, up +0.6 point, and cargo yield grew +1.6% to S39.1 cents.
(SIA)'s half-year net profit was +S$868.3 million, up +50.3% from +S$577.8 million in the six months ended September 30, 2005. Revenues rose +9.9% to S$7.03 billion, expenses climbed +11.8% to S$6.5 billion and operating profit fell -8.7% to +S$533.2 million from +S$583.7 million.
(SQC) 1st nine months = 5.83 billion freight traffic +6.1% (FTK).
December 2006: Singapore Airlines Cargo (SQC) is a standalone cargo operation to complement the parent company's (Singapore Airlines Group) passenger services (SIA).
Employees = 897.
(IATA) Code: SQ - 618. (ICAO) Code: SQC (Callsign - SINGCARGO).
Parent organization/shareholders: Singapore Airlines Group (100%).
Owns: Great Wall Airlines (GWZ) (25%).
Main Base: Singapore Changi Airport (SIN).
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%.
In 2006, Singapore Airlines Cargo (SQC) had 7.99 billion (FTK)s (+5.1%).
May 2007: Record revenue and the proceeds from the sale of its stakes in Singapore Aircraft Leasing Enterprise (SALE) (SIL) and the (SIA) Building, helped carry Singapore Airlines (SIA) Group to a stunning +S$2.13 billion/+$1.4 billion profit for the fiscal year ended March 31, a +71.6% surge over the +S$1.24 billion earned in the prior 12-month period. A +8.6% increase in operating revenue to S$14.49 billion was boosted by +S$421 million from the aforementioned sales and an additional +$247 million gain resulting from a tax writeback. Expenses rose +8.7% to S$13.18 and operating profit climbed +8.3% to +S$1.31 billion. The company credited the airline segment for driving the improved group result.
Singapore Airport Terminal Services suffered a -16.8% drop in operating profit to +S$153 million, (SIA) Engineering's operating profit fell -24.3% to +S$102 million and Singapore Airlines Cargo (SQC) swung to a -S$32 million loss from the prior year's +S$174 million profit.
Full-year traffic rose +7.7% to 89.15 billion (RPK)s and capacity was up +2.3% to 112.54 billion (ASK)s as (SIA) took delivery of nine 777-300ERs and decommissioned five 747-400s. Load factor climbed +3.6 points to 79.2% LF. Yield rose +2.8% to S$0.109 and cost per (ASK) increased +5.3% to S$0.079.
Looking ahead, (SIA) Group said, "The key challenges being faced this year are limited capacity growth arising from delays in the delivery of the Airbus A380, high price of aviation fuel, and uncertainty over the continued strength of the USA economy and its implications globally." It added that "competition will remain keen [and] discipline on costs will be maintained."
Its fiscal year fleet plan comprises the addition of three A380-800s and five 777-300ERs, and the retirement of five more 747-400s. In the fourth fiscal quarter, (SIA) reported net earnings of +S$671.3 million, improved over net income of +S$266.3 million in the year-ago period owing largely to the SALE (SIL) sale.
August 2007: Singapore Airlines (SIA) reported an operating profit of +S$384 million, more than double the year-ago period's figure. Other subsidiary results included a +S$46 million profit at Singapore Airport Terminal Services (down -4.2%), a +S$29 million profit at (SIA) Engineering (down -11.8%), and an -S$11 million loss at (SIA) Cargo (SQC) (widened -115.7%).
November 2007: Singapore Airlines Cargo (SQC) 1st 9 months = 5.85 billion (FTK)s (+.3%) freight traffic.
Seven cargo airlines working in conjunction with (IATA) (ITA) and freight forwarders, initiated e-freight pilot programs on a number of selected trade routes. The airlines are Air Canada (ACN), British Airways (BAB), Cathay Pacific (CAT), (KLM), Martinair (MTH), (SAS), and Singapore Airlines Cargo (SQC). Cargo on key trade routes connecting the countries represented by the carriers, will be processed electronically. "The paper-free era for airfreight begins," (IATA) (ITA) Director General & CEO, Giovanni Bisignani said. "This first wave of pilots will pave the way for a global rollout of e-freight that will eliminate the paper that costs this industry $1.2 billion every year. Combined, these documents could fill 39 747F cargo freighters each year, making e-freight a win for the business and for the environment." Participating freight forwarders in the e-freight pilot program are (DHL) Global Forwarding, Panalpina, Kuehne+Nagel, Schenker, TMI Group-Roadair, and Jetspeed. The potential impact of the increased efficiency in air cargo is expected to have "very broad implications across the global economy," Bisignani claimed. (AFA)/(KLM) said that based on its "experiences at [Amsterdam] Schiphol, we hope to introduce e-freight shipments on the [Paris] Charles de Gaulle network at a later stage" and that it is targeting 50% e-freight penetration on "important trade lanes" within five years.
January 2008: Airlines throughout the world are contending with antitrust (ATI) charges made at the end of 2007 by the European Commission (EC), which has accused at least 11 and as many as 25 carriers of "cartel" activity relating to airfreight transport. In addition to British Airways (BAB), Japan Airlines (JAL), Air France (AFA)/(KLM), (SAS) Group, and Cargolux (CLX) (all of which confirmed receipt of statements of objections from the (EC) before Christmas).(ANA), Air New Zealand (ANZ), Air Canada (ACN), Cathay Pacific Airways (CAT), (LAN) and Singapore Airlines (SIA) have admitted to being charged.
(SIA) issued a statement noting that the formal charges mark a "preliminary stage" in the (EC)'s antitrust violation proceedings. "The commission (EC) has not made findings of infringement [and therefore (SIA) cannot] assess any financial impact on Singapore Airlines Cargo (SQC) or Singapore Airlines (SIA)."
Carriers charged late last year, have two months from the receipt of statements of objections to respond in writing to the (EC) and also have the option of requesting a formal hearing. An airline found guilty or admitting to guilt can be fined up to 10% of its annual revenue.
May 2008: Singapore Airlines Cargo (SQC)'s full-year operating profit was +S$132 million, reversed from a -S$32 million loss the previous year. Cargo traffic decreased -0.5% to 7.96 billion (RTK)s on a -0.8% cut in capacity to 12.79 billion (ATK)s, producing a load factor of 62.2% LF, up +0.2 point. Cargo yield lifted +0.8% to S38.7 cents.
September 2008: Pratt & Whitney (P&W) reached a 10-year fleet management program agreement with Singapore Airlines Cargo (SQC) valued at $500 million, covering 13 747-400Fs powered by (PW4000)s.
October 2008: SEE ATTACHED - - "SQC-2007-TOP-WLD-CARGO."
November 2008: Singapore Airlines (SIA) reported a S$323.8 million/$219.4 million profit in its fiscal second quarter ended September 30, a -32.6% decrease from the +S$507.8 million earned in the year-ago period, as fuel costs took their toll. (SIA) said the global "financial turmoil" and "weak consumer confidence" have impacted demand, and while advance bookings in the current quarter "are holding up reasonably well," it sees "signs of weakness beyond that." Nevertheless, it said its "sound finances and low level of debt put it in a position of strength."
Fiscal second-quarter revenue climbed +10.4% year-over-year to S$4.38 billion, against a +20.3% surge in expenses to S$4.15 billion. Operating profit fell -55.3% to +S$231.7 million. Passenger numbers increased just +1.4% to 4.9 million, as traffic measured in (RPK)s grew +4.5% to 24.1 billion. Capacity rose +7.7% to 30.47 billion (ASK)s and load factor slipped -2.5 points to 79.1% LF. Yield gained +6.7% to 12.8 cents, while unit cost climbed +13.1% to 9.5 cents.
During the first half of its fiscal year, (SIA) took delivery of three A380-800s and four 777-300ERs. It also decommissioned four 747-400s, leaving its operating fleet as of September 30 comprising 14 747-400s, 76 777s, five A340-400s, and six A380-800s.
Six-month net profit fell -26.8% to +S$682.4 million from +S$931.9 million in the semester, ended September 30, 2007. Operating profit plunged -41.4% to +S$574.9 million, as fuel costs soared +66.3%. Operating profits at all (SIA) Group units dropped save the cargo division (SQC), which swung to a -S$76 million loss from a +S$19 million profit.
(SQC) transported a particularly valuable shipment of 19 Porsche 911 GT3 racing cars from Shanghai to Bahrain - - SEE ATTACHED PHOTO & ARTICLE - - "SQC-2008-11 PORSCHE CAR CARGO."
December 2008: The Australian Competition and Consumer Commission (ACCC) announced that it has "instituted proceedings" in Federal Court against Singapore Airlines Cargo (SQC), which it accused of colluding on fuel and security surcharges between 2001 and 2005 on flights to and from Australia. A hearing has been scheduled for February 12. (SQC) will "defend allegations . . . that it, and several other airlines, have engaged in cartel conduct," a spokesperson told "Reuters." "(SQC) is committed to competing successfully and fairly, within the requirements of the relevant competition law in Australia."
The (ACCC)'s investigations into similar behavior by Qantas (QAN) and British Airways (BAB) have resulted in fines of A$20 million/$13.6 million and A$5 million, respectively. "The (ACCC) continues to investigate other airlines, some of which are assisting voluntarily while others are not. The (ACCC) expects to be able to finalize its investigations with a number of airlines shortly," Chairman, Graeme Samuel said.
January 2009: Singapore Airlines (SIA)/(SQC) is negotiating leave without pay with its cargo pilots (FC), VP Public Relations, Stephen Forshaw told "Agence France Presse." Unpaid leave periods could reach 30 months. "The outlook for the freight industry is weak . . . shipping companies are parking vessels and all-cargo airlines are being severely affected," Forshaw told the news agency. He said Singapore Airlines Cargo (SQC) "will work cooperatively with its staff and unions" on the matter and that layoffs "will only be considered as a matter of last resort." There are no discussions for unpaid leave with passenger pilots (FC), he noted.
February 2009: Massive fuel hedging losses and falling revenue resulted in a -43% drop in fiscal third-quarter profit at the Singapore Airlines Group, to +S$337.2 million/+$225.5 million from the +S$590 million earned in the three 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. Singapore Airlines 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, five A340-500s and six A380-800s.
Nine-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) said. "(SIA) will continue to monitor the patterns of demand and make appropriate adjustments to flight schedules and capacity, while managing costs tightly."
Singapore and Oman announced an "open skies" agreement covering both passenger and cargo flights.
March 2009: Singapore Airlines (SIA) reported a record decline in passengers for February, a -20.2% year-over-year plunge to 1.2 million. (RPK)s traffic fell -17% to 5.86 billion against just a -8.5% cut in capacity to 8.41 billion (ASK)s, lowering load factor -7.1 points to 69.7% LF. Cargo declined -15.2% to 473.7 million (FTK)s freight traffic on a -7% fall in capacity to 835.1 million (ATK)s, dropping load factor -5.5 points to 56.7% LF. February 2008 figures were supported by the Chinese New Year holiday, the Singapore Air Show and the leap year.
(SIA)'s capacity contraction is the result of the planned grounding of 17 airplanes, introducing 777-300ERs to replace 747-400s and termination of some routes. It said it "will continue to monitor traffic movement and make appropriate adjustments to its route network where necessary to match capacity to demand." However, insiders at the airline said that traffic for March and April will be "no better."
Singapore Airlines (SIA) offered staff an opportunity to take between one week and two years unpaid leave as a way of avoiding layoffs, a spokesperson told "The Straits Times."
Korean Air (KAL), Asiana Airlines (AAR), (SIA) and Air Canada (ACN) began rerouting flights that normally pass through North Korean airspace after Pyongyang said it was "compelled to declare that security cannot be guaranteed for South Korean civil airplanes flying through the territorial air of our side." (KAL) and (AAR) began rerouting an estimated 15 daily flights that approach South Korea from the east to new flight paths that take airplanes over Japan, adding an estimated 40 minutes and $2,500 in operational costs to each flight. South Korea's Unification Ministry estimated that 33 flights pass through North Korean airspace daily, 18 of which are operated by non-Korean airlines.
North Korea has allowed commercial flights to pass through its airspace since 1998, after more than >40 years of prohibiting civil flights. According to "JoonAng Daily," South Korean carriers submit flight plans to North Korea for each flight that will pass through its airspace and the nation collects an average of $870 for each. The Unification Ministry said 5,260 flights per year use the route, adding that South Korean carriers annually pay nearly $4 million to Pyongyang for airspace access. North Korea's threat was condemned widely. "The military threat against normal operation of civilian airliners under international aviation protocols is in violation of international norms and is inhumane," South Korea's government said in a statement. "It can never be justified under any circumstance. The South Korean government urges the North to withdraw its military threat as soon as possible." The USA called the threat "a provocation and . . . unacceptable." Tensions are high on the peninsula, with North Korea stating that it plans to conduct missile tests and South Korea and the USA planning to conduct annual military exercises this week that Pyongyang condemns. The USA and South Korea said they plan to carry forward with the exercises that North Korea cited as the reason for its threat against airlines.
July 2009: The global economic downturn, swine flu and unfavorable fuel hedges were enough to drag Singapore Airlines (SIA) to its first 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 first 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. Singapore Airlines 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 two A380-800s and four A330-300s, while decommissioning three 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) CEO, Chew Choon Seng believes the traffic downturn largely has bottomed out. Chew cited "signs . . . that market demand has stabilized," adding that (SIA) has observed that some corporations are easing their travel policies. But he noted that "all of us have lost two years of growth" and "the fact of the matter is that the G20 countries are not out of the woods yet." Discussing the collapse in airfreight, which has hit Asia/Pacific airlines particularly hard, he said it is too soon to say whether it portends a structural or cyclical change in that segment of the business. Singapore Airlines Cargo (SQC) has parked only one of its 13 747-400Fs, while some others are "doing useful charter work carrying F1 race cars," he said, smiling. (SQC) has no plans to add any freighters.
November 2009: Singapore Airlines (SIA) reported a -S$158.8 million/-$114.4 million loss in its fiscal second quarter ended September 30, reversed from a +S$323.8 million profit in the year-ago period, but said that "advanced bookings indicate that demand for air travel has stopped declining and is gradually recovering."
Group revenue fell -29.6% year-over-year to S$3.08 billion against a -21.3% cut in expenses to S$3.26 billion. Operating result swung to a -S$181.4 million loss from a +S$231.7 million profit in the three months ended September 30, 2008.
The (SIA) airline unit suffered a -S$157 million operating loss in the quarter and now is -S$428 million in the red through the half-year, a figure that includes a -S$400 million fuel hedging loss. It reported a +S$495 million profit in the year-ago semester. (SIA) Engineering made S$47 million in the six months ended September 30, Singapore Airlines Cargo (SQC) lost -S$193 million and SilkAir (SLK) lost -S$5 million.
Second-quarter passenger numbers fell -13.6% year-over-year to 4.2 million as traffic (RPK)s sank -11.8% to 21.25 billion. Capacity was cut -12.4% to 26.69 billion (ASK)s, lifting load factor +0.5 point to 79.6% LF. Yield plunged -23.4% to S$9.8 cents and unit cost improved +8.4% to S$8.7 cents. Cargo load factor rose +2.1 points to 62.9% LF but carriage was down -15.4% and yield plummeted -32.5% to S$28.7 cents. "For the northern winter schedule, flight frequencies will continue to be adjusted to match demand," (SIA) said.
(SIA) took delivery of four A380-800s and four A330-300s during the semester, while decommissioning three 747-400s. The operating fleet comprised nine 747-400s, 77 777s, 10 A380-800s, eight A330-300s and five A340-500s as of September 30.
Looking ahead, (SIA) said that "market conditions allow for some rollback of promotional pricing but yields are unlikely to get back to pre-crisis levels within the next six months."
July 2010: Singapore Airlines (SIA) reported net income of +S$253 million/+$184.7 million for its fiscal first 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 first-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 first 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. SilkAir (SLK) posted operating income of +S$15 million, turned around from a -S$3 million loss.
November 2010: The European Commission (EC) fined 11 airlines a total of €799 million/$1.1 billion for "operating a worldwide cartel which affected cargo services within the European Economic Area." In a statement, the (EC) said the carriers "coordinated their action on surcharges for fuel and security without discounts over a six-year period." Air France (AFA) received the largest fine at €182.9 million, followed by its affiliate (KLM) at €127.2 million. Other fines include British Airways (BAB) (€104 million), Cargolux (CLX) (€79.9 million), Singapore Airlines (SIA) (€74.8 million), (SAS) (€70.2 million), Cathay Pacific Airways (CAT) (€57.1 million), Japan Airlines (JAL) (€35.7 million), Martinair (MTH) (€29.5 million), Air Canada (ACN) (€21 million), Qantas (QAN) (€8.9 million) and (LAN) Airlines (€8.2 million).
Lufthansa (DLH) and its subsidiary Swiss International Air Lines (CSR) "received full immunity from fines under the (EC)’s leniency program, as it was the first to provide information about the cartel," the (EC) stated.
"It is deplorable that so many major airlines coordinated their pricing to the detriment of European businesses and European consumers," said (EC) VP Competition, Joaquin Almunia. "With today’s decision, the (EC) is sending a clear message that it will not tolerate cartel behavior." The (EC) charged that the "cartel members" coordinated pricing from December 1999 to February 2006.
The (EC) in late 2007 sent out official statements of objections to as many as 25 carriers regarding cargo price fixing. It said that 11 carriers originally charged were not fined.
The (EU), USA Department of Justice, Australian Competition and Consumer Commission and other authorities worldwide have been investigating anti-competitive practices in air cargo since 2005. Cargolux (C LX) President & CEO, Ulrich Ogiermann and Senior VP Sales & Marketing, Robert Van de Weg were recently indicted in a USA court on charges of conspiring to fix and coordinate certain surcharge rates on air cargo shipments to and from the USA.
In a statement, Air France (AFA)/(KLM) said it considered the level of the fine to be "disproportionate given the fact that the economic analysis demonstrated that the actions in question had no detrimental effect on the freight shippers or the freight forwarders. Moreover, the level of the fines disregards the economic hardship that the air cargo industry has suffered, and will have a distortive effect on the level playing field." It added that it intends to appeal the decision to (EU) courts. Because the level of the fine exceeds the level of provisions already taken by the company for potential cargo antitrust payments, (AFA)/(KLM) will book a charge of €127 million for the first half of its current fiscal year.
(SAS) said in a statement it has not been involved in a global cartel and the fines are disproportionate. It also plans to appeal the decision, a process that could take several years. The fines will be accounted for in (SAS)'s third-quarter earnings.
Air Canada (ACN) said in a statement it may appeal the decision and said the penalty is “more than adequately” covered by a C$125 million provision it made in 2008.
"We are highly disappointed and strongly contest the considerable level of the fines, which we believe to be disproportionate to (SAS) Cargo's actions," said (SAS) Chief Legal Officer, Mats Loennkvist. "We have cooperated fully with the (EC) during the entire investigation and, for slightly more than four years, we have disputed the (EC)'s view that (SAS) Cargo has been involved in a global cartel."
December 2010: China Eastern Airlines (CEA) revealed its plan to consolidate its cargo subsidiaries as its merger process with Shanghai Airlines (SHA) accelerates. (CEA)’s three cargo subsidiaries: — China Cargo Airlines (CKK), Shanghai Airlines Cargo (SHA) and Great Wall Airlines (GWZ) — will be consolidated into one cargo venture. (CEA), with a 51% share, will be the controlling stakeholder. The other stakeholders include China Ocean Shipping (Group) Company, Eva Air (EVA) and Singapore Airlines Cargo (SQC).
(EVA) noted it would invest CNY328 million/$49.1 million to purchase a 16% stake in the new cargo venture. An industry insider said that China Ocean Shipping (Group) Company may hold a 17% stake and SIA Cargo (SQC) would hold the remaining 16%.
January 2011: Singapore Airlines (SIA) parent, the (SIA) Group earned net income of +S$288.3 million/+$225.4 million for its fiscal third quarter ended December 31, down -28.6% from a +S$403.7 million profit in the prior-year period, a decline attributable to S$199.1 million in special charges related to price-fixing fines against (SIA) Cargo (SQC).
The company said in a statement that it "has accepted" a $48 million fine imposed by the USA Department of Justice, but is appealing a €74.8 million/$102.5 million fine from the European Commission (EC) and a KRW3.1 billion/$2.8 million penalty from the South Korean Fair Trade Commission. Excluding the fines, fiscal third-quarter net income would have risen +21% year-over-year, (SIA) said.
Quarterly revenue heightened +12.3% compared to the prior-year period to S$3.84 billion, while expenses escalated +7.4% to S$3.33 billion, producing an operating profit of +S$509.3 million, up +57% over operating income of +S$322.9 million in the quarter ending December 31, 2009. (SIA) said (SIA)’s fiscal third-quarter operating profit improved +63.6% compared to the prior-year period to S$378 million. (SIA) Cargo (SQC)'s operating profit increased +18% to S$48 million while SilkAir (SLK)'s operating income heightened +93% to +S$45 million. (SIA) Engineering posted a +38% lift in quarterly operating income to +S$34 million.
Passenger traffic for the quarter rose just +0.3% to 22.18 billion (RPK)s on a +3.7% heightening of capacity to 27.81 billion (ASK)s, producing a load factor of 79.7% LF, down -2.7 points. Yield improved +15.2% to S$0.121.
May 2011: Singapore Airlines (SIA) earned a +S$1.09 billion/+$885.3 million net profit for its fiscal year ended March 31, a more than 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.
The parent 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 seven 747-400s, 66 777s, 19 A330-300s, 11 A380-800s and five A340-500s. In the current fiscal year, it expects to take delivery of eight A380-800s and decommission five 777s and all seven of its 747-400s. "The net decrease of four 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."
February 2012: Singapore Airlines (SIA) parent, the (SIA) Group reported a net profit of +S$374 million/+$298.2 million for the first 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 third 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 nine-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. Nine-month operating profit fell -74% to +S$814 million.
Fiscal third-quarter operating profit was +S$159 million, down -69% year-over-year. Breaking down (SIA)'s fiscal third quarter by subsidiary, Singapore Airlines (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.
Singapore Airlines Cargo (SQC) President, Tan Kai Ping said that "depressed demand . . . across all markets gives us little reason to be optimistic about the near-term outlook," driving (SQC) to cut freighter capacity by -20%. (SQC) said it is not grounding any of its 13 747-400Fs but is operating each airplane fewer hours. The cuts are "mainly for long-haul services. The capacity reductions were implemented recently and will continue into the northern summer operating season, which starts [late March]."
Tan said, "With no improvement expected in the first half of this calendar year, and with stubbornly high fuel prices pushing up costs, we have taken appropriate action to reduce our freighter operations to better match capacity to demand." International air cargo traffic is estimated to have decreased by about -1% year-over-year in 2011 compared to 2010.
Boeing (TBC) agreed to take over technical management of the fleet of 13 747-400F freighter jets for (SQC). (TBC) will monitor the airplanes every day, checking on reliability and adjusting the maintenance schedule as required to optimize performance.
(TBC) and (SQC) have entered into a maintenance engineering and planning agreement that results in "GoldCare" coverage for (SQC)'s fleet of 13 747-400F Freighters.
"GoldCare" is a centrally managed and tailored materials and engineering service, with optional maintenance execution, that, when combined, provides high value for customers by minimizing airline risk, simplifying their business and providing improved cost management.
The long-term performance-based maintenance engineering contract builds upon previous maintenance support products purchased by the Singapore Airlines Group, including (TBC)’s Airplane Health Management, Integrated Materials Management Electronic Flight Bag, Electronic Logbook and Maintenance Performance Toolbox.
“The leadership of the Singapore Airlines Group is very forward-thinking and they adopted many of (TBC)’s Information Technology (IT) and spares support products during the time that "GoldCare" was being developed for the 787 Dreamliner,” said Lou Mancini, Senior VP, Commercial Aviation Services for (TBC). “With maintenance engineering and planning, this brings together the major elements of "GoldCare" in a way that tailors the service to the needs of (SQC).”
August 2012: Singapore Airlines Cargo (SQC) launched weekly, Singapore (SIN) - Hong Kong - Anchorage - Dallas (DFW) - Sao Paulo - (DFW) - Brussels - Sharjah - (SIN) cargo service, increasing to 2X-weekly this fall.
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 third 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 SilkAir (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 United States,” 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 fourth quarter, from which it expects to record a gain of +S$322 million, not including selling expenses.
October 2013: Etihad Cargo (EHD) and Singapore Airlines Cargo (SQC) are to exchange confirmed cargo capacity on the two carriers’ services between Abu Dhabi to London Heathrow and Frankfurt. The agreement allows Etihad (EHD) Cargo to offer capacity to Singapore Airlines Cargo (SQC) on one of its weekly freighter services from Abu Dhabi to Frankfurt. It will also give (SQC) access to its cargo route network around the Middle East, as well as to Africa and Central Asia.
In return, Singapore Airlines Cargo (SQC) will offer capacity on its freighter services to London Heathrow operated via Abu Dhabi. (SQC) began a weekly 747-400F service from Singapore to Heathrow via Abu Dhabi in June. A second weekly frequency on the same routing is due to start October 31.
(EHD) VP Cargo, David Kerr said, “this year, we have strengthened our cargo operations by expanding the freighter fleet, launching new destinations, increasing frequencies, and by working with partner carriers such as (SQC).”
For (SQC), Tan Tiow Kor, Senior VP Sales & Marketing added, “we are very pleased with this capacity exchange with (EHD). It will offer customers of both airlines more choice of flights to ship their cargo and improve access to the Middle East, Africa, Central Asia, and Germany.”
August 2014: Net profits for Singapore Airlines parent, the (SIA) Group fell -71.4% year-over-year during its fiscal-first-quarter ended June 30. (SIA) reported a first-quarter net profit of +SGD35 million/+$28 million, down -SGD87 million from the year-ago-quarter.
The (SIA) Group’s first-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.
Singapore Airlines (SIA) reported a fiscal-first-quarter operating profit of +SGD45 million, down -49.4% year-over-year from +SGD89 million in operating profit the airline 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 first fiscal quarter, parent airline company, Singapore Airlines (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.
SilkAir (SLK)’s first-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. SilkAir (SLK)’s resulting passenger load factor for the quarter came to 69.5% LF, a -0.1 point drop from last year’s first-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-kilometers. 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, Singapore Airlines (SIA) fleet consisted of 103 airplanes (57 Boeing 777s, 27 Airbus A330-300s and 19 A380-800s). SilkAir (SLK)’s fleet comprised 26 airplanes (16 A320-200s, six A319-100s and four 737-800s). (SIA) Cargo (SQC) has a fleet of eight 747-400F freighters. The (SIA) Group’s low-cost-carrier (LCC) subsidiary, Scoot (SCT) maintains a fleet of six 777-200s.
CAL Cargo Air Lines ((IATA) Code 5C, based at Tel Aviv Ben Gurion) (CRG) planned to upgrade its existing 747-200F cargo fleet with the lease and acquisition of 747-400F (26553) from Singapore Cargo (SQC).
November 2014: 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 first 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 SilkAir (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.
February 2015: News Item A-1: Singapore Airlines (SIA) group reported a net profit rise of +35% to +S$275 million/+$196 million for the 3 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 3rd 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.
February 2016: "Changi Airport Offers Incentives to Cargo Operators"
by (ATW) Jeremy Torr, February 19, 2016.
Singapore’s Changi Airport will offer S$14 million/$10.7 million in incentives to cargo operators in an attempt to boost freight handling demand.
Changi Airport Group (CAG) has said it will extend a 30% landing fee rebate for scheduled cargo service up to April 2017, and will also apply more of what it calls “cost relief against the backdrop of a challenging outlook for the global airfreight industry.”
The assistance will come in the form of a one-off Special Assistance Package (SAP) for cargo agents that will cut annual facility rental by up to -45% on the standard rates.
(CAG) Senior VP Market Development Lim Ching Kiat said the cargo industry is likely to see “strong headwinds” in 2016 that would continue to reflect weak Asian economic performance.
In 2015, Changi handled 1.85 million tonnes of cargo, but in the face of declining general freight has placed an emphasis on high value and perishable goods. It has recently opened new facilities for cold room and trans-shipment capacity in specialist sectors like the pharmaceutical industry.
“In light of the trying business conditions, we are committed to support our cargo partners through these difficult times,” Lim said.
Additionally, (CAG) is putting forward a business-related incentive scheme to help reduce cargo handler costs. This scheme offers further discounts on facility leasing agreements, based on the volume of cargo handled.
Although Changi has been ranked in the top 10 airports for cargo handling, it has seen poor recent growth with only 0.5% increase in overall cargo volumes for 2015 compared to 2014.
October 2016: Zodiac Aerospace was selected by Singapore Airlines Cargo (SQC) to supply of >2,000 Zodiac Herculight (S AKE) cargo containers. The containers, constructed with a combination of composite and aluminum panels, come in 2 highly customized configurations to target (SQC)’s needs in both passenger and cargo operations.