SINGAPORE AIRLINES REACHES A MAKE OR BREAK POINT

[alberttky 0]

• Passenger operations at Singapore Airlines unit ‘marginally profitable’

• SIA made S$214.2 million FY14 Q1 net loss after stripping out Virgin Atlantic stake sale
• Tigerair’s possible investment in India’s SpiceJet slightly positive
• New SIA cabin products a catch-up to competitors’
• Qantas/Emirates alliance having significant impact on SIA
• Emirates’ Australian operation matches size of Singapore Airlines’ for the first time
• Singapore Airlines should partner with ANA & United Airlines to address North American network deficiencies
• Singapore Airlines likely to convert orders to A350-900R & -1000

​Continue reading at http://www.aspireaviation.com/2013/08/16/singapore-airlines-reaches-a-make-or-break-point/#.Ug4kNMK246w.twitter

 

[Kar Yong Lim 0]

If SQ reaches make or break point, then MH reaches ....... !

[zamim 0]

SIA made S$214.2 million FY14 Q1 net loss after stripping out Virgin Atlantic stake sale

 

FY14Q1?

[flee 5]

Yes, SQ's year end is 31 March - so their FY14Q1 would be the Q ended 30/6/13.

[flee 5]

First Quarter 2013-14

The Group earned a net profit of $122 million (+$44 million, or +56%) in the first quarter of the 2013-14 financial year.

The improvement was mainly due to gains from the sale of aircraft and exceptional items, including a net gain of $336 million from the sale of the Company’s stake in Virgin Atlantic Limited to Delta Air Lines, Inc. However a restructuring impairment cost of $293 million was booked on four surplus SIA Cargo freighter aircraft that have been removed from the operating fleet and marked for sale.

Group revenue increased $63 million (+1.7%) to $3,840 million, mainly due to $75 million recognised during the quarter from settlement pertaining to changes in aircraft delivery slots [Note 2]. Passenger revenue excluding the settlement improved

marginally over the same quarter last year on the back of 1.8% growth in passenger carriage, partially offset by weaker yields. Intense competition and unfavourable foreign exchange movements for revenue-generating currencies against the Singapore

dollar pushed yields down by 2.6%. Cargo revenue was affected by lower loads (-5.3%) and yields (-5.5%) with overcapacity in the market as well as the weak global economic situation.

Notwithstanding lower net fuel costs from the temporary relief in fuel prices during the quarter, Group expenditure rose by $53 million (+1.4%) over the same period last year, largely due to higher staff and non-fuel variable costs, in tandem with

the increase in capacity. Consequently, Group operating profit for the first quarter was $82 million, an increase of $10 million (+14%) over the same quarter last year.

The operating results of the main companies in the Group for the first quarter are as follows:

 Parent Airline Company Operating profit of $89 million ($85 million profit in 2012)

 SIA Engineering Operating profit of $28 million ($34 million profit in 2012)

 SilkAir Operating profit of $14 million ($18 million profit in 2012)

 SIA Cargo Operating loss of $40 million ($49 million loss in 2012)

 

FIRST QUARTER 2013-14 OPERATING PERFORMANCE

The Parent Airline Company’s passenger carriage (in revenue passenger kilometres) increased 1.6% in the first quarter of the 2013-14 financial year. However, this lagged behind capacity expansion (in available seat-kilometres) of 3.5%, resulting

in a 1.5 percentage-point drop in passenger load factor to 78.0%.

SilkAir’s capacity expanded by 16.6% but passenger carriage grew at a slower 6.2%. Consequently, passenger load factor fell 6.8 percentage points to 69.6%.

SIA Cargo’s load factor of 62.5% was marginally lower year-on-year as carriage (in load tonne-kilometres) fell 5.3%, more than the 4.8% reduction in cargo capacity (in capacity tonne-kilometres).

FLEET AND ROUTE DEVELOPMENT

The Parent Airline Company took delivery of two A330-300s and decommissioned one B777-200 during the April-June quarter. As at 30 June 2013, the fleet comprised 102 passenger aircraft - 56 B777s, 22 A330-300s, 19 A380-800s and five A340-500s, with an average age of 6 years and 9 months.

SilkAir took delivery of one A320-200 aircraft during the quarter, and as at 30 June 2013 its operating fleet comprised 23 aircraft – 17 A320-200s and six A319-100s. SilkAir launched an additional weekly flight to Chengdu on 5 July 2013 and will introduce six more weekly flights to Medan, resulting in three times daily services by the end of Northern Summer 2013. Regulatory approvals have also been obtained to operate three times weekly flights to Semarang and Makassar from 29 July 2013 and 1 August 2013, respectively. In addition, SilkAir will mount additional flights to Palembang from 14 October 2013.

Scoot took delivery of one B777-200 during the quarter, bringing its total fleet to five B777-200s as at 30 June 2013. Seoul and Nanjing were introduced to its network on 29 May 2013 and 3 June 2013, respectively.

Having removed a total of four freighters, SIA Cargo operated nine B747-400 freighters as at 30 June 2013.

From 1 July 2013, the Parent Airline Company introduced an additional service to Melbourne, while frequency to Adelaide was increased from 10 to 12 flights per week. Jakarta and Denpasar (Bali) will each be boosted with an additional daily

flight from 26 July 2013, increasing frequency to nine and four daily flights, respectively. In addition, the Parent Airline Company will take over one of the two daily SilkAir flights to Surabaya.

OUTLOOK

The Group’s operating environment continues to be impacted by the uncertain global economic climate and high fuel prices.

Forward passenger bookings for the next few months are expected to be higher against the same period last year and in line with the planned increase in passenger capacity. However, yields are expected to be weaker as a result of the intense competitive environment. On the cargo front, demand is expected to remain depressed, in turn placing pressure on loads and yields.

In this challenging operating environment, the Group will continue to monitor demand trends closely and make appropriate adjustments to flight schedules and capacity, alongside a continued focus on cost discipline.

More:

http://www.singaporeair.com/pdf/Investor-Relations/Financial-Results/presentation/slide-staffcommq1fy1314.pdf

http://www.singaporeair.com/pdf/Investor-Relations/Financial-Results/SGXNET/sgxann-q1fy1314.pdf

http://www.singaporeair.com/pdf/Investor-Relations/Financial-Results/News-Release/nr-q1fy1314.pdf

[S V Choong 4]

If SQ reaches make or break point, then MH reaches ....... !

 

MH will never reach that point as MH's has abysmally deep pocket to say the least!

Edited August 17, 2013 by S V Choong

[alberttky 0]

If we purely compare the cash positions for the respective companies without their "backup"?

[BC Tam 2]

If we purely compare the cash positions for the respective companies without their "backup"?

I imagine in the case of MH, we're probably delving into realm of the after life

[xtemujin 0]

Singapore Airlines, Air New Zealand extend ties with code share deal, NZ flights

16 January 2014 Thursday | 1:43am EST

 

Reuters) - Singapore Airlines Ltd (SIAL.SI) and Air New Zealand (AIR.NZ) have deepened ties in a partnership on shared codes and flights that could divert some traffic from Australia, potentially adding to pressure on loss-making Qantas Airways Ltd (QAN.AX).

 

The tie-up is in line with Singapore Airlines strategy to form global partnerships for its flagship premium airline amid growing competition for the region's travelers from ambitious Gulf carriers including Emirates Airline EMIRA.UL and Etihad Airways.

 

Singapore Airlines has already expanded its footprint in Australia, increasing its stake in Virgin Australia Holdings Ltd (VAH.AX) alongside Air New Zealand and Etihad to boost passengers feeding into its long-haul premium services. That deal came after Qantas switched its transit hub from Singapore to Dubai as part of a wide-ranging alliance with Emirates.

Last month, Australia spurned a plea for help from Qantas, whose credit rating was relegated to junk status by Standard & Poor's following a shock loss warning from the carrier, squeezed on its international routes.

 

Singapore Airlines and Air New Zealand have enjoyed close ties for years. Under the agreement unveiled on Thursday, Air New Zealand will get to fly the Auckland-Singapore route, while Singapore Airlines will operate the Airbus A380 to New Zealand.

"Subject to regulatory approvals, the carriers would aim to boost their existing capacity between Singapore and New Zealand by up to 30 percent year-round over time," the partners said in a joint statement.

 

Pending the approvals, flights could commence as early as December 2014.

 

The new alliance would enable Air New Zealand passengers to access codeshare travel on the Singapore Airlines network to Britain, continental Europe, South East Asia and Africa, as well as on the network of its regional subsidiary airline, SilkAir.

 

Singapore Airlines' customers would be able to access codeshare travel across the Air New Zealand domestic network and to selected international destinations. Air New Zealand last operated to Singapore in 2006.

 

Air New Zealand has been filling more seats through competitive pricing. Increasing routes to Asian countries, a growing source of tourism dollars, has also helped its long-haul flights turn a profit.

 

In one of the long-standing links between the pair, Singapore Airlines previously owned shares in Air New Zealand. But it sold its entire 6.3 percent stake in Air New Zealand in 2004, ending a four-year investment that cost the company about $336 million at that time.

 

(Reporting by Anshuman Daga; Editing by Kenneth Maxwell)

 

http://www.reuters.com/article/2014/01/16/us-singaporeairlines-airnewzealand-idUSBREA0F04H20140116

Edited January 18, 2014 by xtemujin