Well done SQ !!!

[Pieter C. 5]

July 28, 2006

Singapore Airlines should next week post its first quarter of higher profits after five quarters of declining earnings, as it battles high fuel prices by hedging and keeping other costs under control.

 

The carrier, the world's second-biggest airline by market value, faces what Chief Executive Chew Choon Seng calls "runaway fuel prices" as the price of jet fuel set a record of more than USD$90 a barrel this month.

 

Industry experts say it owes its strong performance to fuel hedging and tight cost controls, including paying lower salaries than other airlines, fewer staff benefits and no pension liabilities.

 

The airline, ranked behind Southwest Airlines in market value, spent SGD$1.12 billion (USD$710 million) on fuel for its 90 aircraft in January-March -- more than four times its profit for that quarter -- making it the airline's single-biggest expense.

 

But even with rocketing fuel costs, the airline has never booked a full-year loss.

 

Industry group IATA expects airlines worldwide to post losses of USD$2.2 billion this year after losing a total of USD$6 billion last year.

 

Excluding the sale of planes and property, Singapore Air is expected to report an 18 percent rise in April-June net profit to around SGD$277 million (USD$175 million), according to forecasts.

 

Singapore's only global brand, whose advertising heavily relies on its "Singapore Girl" flight attendants, made a profit of SGD$266 million (USD$168.5 million) in its January-March fourth quarter.

 

The company's share price has risen 6.5 percent so far in 2006, beating a 3.6 percent gain by the Straits Times index. Analysts expect little in terms of surprises when Singapore Air releases first-quarter results on Tuesday.

 

The airline learnt last month that deliveries of the new Airbus A380 superjumbo, which Singapore Air hopes to fly at the end of this year, will be at least six months late.

 

Singapore Air has since ordered Boeing planes worth USD$4.5 billion, and then followed up with a surprise USD$7.5 billion order for Airbus earlier this month.

 

The Singapore carrier has also been holding talks with China Eastern about unspecified "possibilities". No result has been announced yet.

 

Goldman Sachs analyst Jean-Louis Morisot said in a note to investors that he expected the state-controlled airline's results to have only a small impact on its share price.

 

"The key drivers, in our view, could depend more on SIA's strategic decisions," Morisot said, citing the possible sale of stakes in SIA Engineering and Singapore Airport Terminal Services (SATS), and the prospect of a special dividend as a result of such a deal.

 

Another driver for the shares could be a possible investment "in high-growth carriers overseas, such as China Eastern Airlines", he said.

 

Singapore Air shares have outperformed those of Hong Kong rival Cathay Pacific, up 3.9 percent so far in 2006, and Australia's Qantas, which have slumped 24 percent.

 

(Reuters)

 

[Edwin P K 0]

SQ really know how to do business!

 

 

[Tony 1]

Industry experts say it owes its strong performance to fuel hedging and tight cost controls, including paying lower salaries than other airlines, fewer staff benefits and no pension liabilities.

Still better pay than MH, I guess?

 

Singapore Air shares have outperformed those of Hong Kong rival Cathay Pacific, up 3.9 percent so far in 2006, and Australia's Qantas, which have slumped 24 percent.

Ouch! Dixon's not too happy with the fuel issues, and he's been complaining ever since. Heard that QF is laying off another 1,000 jobs in due course.

[Guest Fendy]

SQ really know how to do business!

i saw a book in mph yesterday of how SQ conducts their business and their success. go buy it.

[LeeCH 0]

'Singapore Girl' branding for advertistment. Yeah. Very good. Better news for all of us here. One of my good friends have been selected as the worldwide advertistment 'Singapore Girl' A380 promotion. Hmm.......looks like I will see her face in the streets of Orchard Road and Big Apple in New York. And she comes from the small sleepy town of Tanjung Malim, Perak, MALAYSIA!! MALAYSIA BOLEH!!

 

Yes, our pay is the lowest in the industry (Comparatively). But on a package as a whole, inclusive of bonuses, equipment, work environment , safety, and operating patterns, it is definitely 'THE' place to be in. Not too bad at all. At least the company is making money and no one man's rice bowl will be sacrificed. Job security is always there.

 

My SGD$0.02 view.

 

Attan aka WiseOne, any idea why people always say my two cents worth of opinion? And not any other cents??

[Radzi 2]

 

Yes, our pay is the lowest in the industry (Comparatively).

 

Don't insult lah brother!

 

[Edwin P K 0]

SIA better paying than MAS pilots right...?

[Seth K 3]

Attan aka WiseOne, any idea why people always say my two cents worth of opinion? And not any other cents??

"That's my two cents' worth," meaning basically "that's what I think, take it or leave it."

Edited July 30, 2006 by Seth K

[Isaac 0]

Still better pay than MH, I guess?

Definately. Last time i saw a SQ advertisement in The Star newspaper, monthly salary for a F/A is more than RM8k

 

 

i saw a book in mph yesterday of how SQ conducts their business and their success. go buy it.

Yeah, i bought that book about a month ago but never had a chance to read it as i'm too busy.

 

 

SIA better paying than MAS pilots right...?

Yes, Edwin. Even TG pilots are better paid compared to MH.

 

[Sing Yew 1]

i saw a book in mph yesterday of how SQ conducts their business and their success. go buy it.

 

What's the title of the book ?

 

 

[Attan 0]

'Singapore Girl' branding for advertistment. Yeah. Very good. Better news for all of us here. One of my good friends have been selected as the worldwide advertistment 'Singapore Girl' A380 promotion. Hmm.......looks like I will see her face in the streets of Orchard Road and Big Apple in New York. And she comes from the small sleepy town of Tanjung Malim, Perak, MALAYSIA!! MALAYSIA BOLEH!!

 

Yes, our pay is the lowest in the industry (Comparatively). But on a package as a whole, inclusive of bonuses, equipment, work environment , safety, and operating patterns, it is definitely 'THE' place to be in. Not too bad at all. At least the company is making money and no one man's rice bowl will be sacrificed. Job security is always there.

 

My SGD$0.02 view.

 

Attan aka WiseOne, any idea why people always say my two cents worth of opinion? And not any other cents??

 

There are many theories on why it's "two cents" but I think it's the fact that the 2-cent coin was the most popularly used in the 19th century. That's the first coin to bear the words "In God We Trust". The penny is one cent, nickel five cents, dime ten cents and two-bits (or quarter) twenty-five cents.

Edited July 31, 2006 by Attan

[LeeCH 0]

WiseOne is really wise one. Walking encyclopedia to all my queries. Kudos and kow tow to you sir!!

[Keith T 2]

Still better pay than MH, I guess?

Ouch! Dixon's not too happy with the fuel issues, and he's been complaining ever since. Heard that QF is laying off another 1,000 jobs in due course.

 

Or transferring their crew to JQ International (on a 'take it or leave it' basis) and paying them much lesser.

[Syed A Ridhwan 0]

What's the title of the book ?

 

I believe this could be the one Fendy is talking about;

The Quest for Global Quality: A Manifestation of Total Quality Management by Singapore Airlines

ISBN: 0201420872

 

You can get it at Borders too.

 

Cheers,

 

[Guest Fendy]

^^^

 

i think thats the one, it has a a345 leadership on the cover, its a hard cover book.

[Sing Yew 1]

I believe this could be the one Fendy is talking about;

The Quest for Global Quality: A Manifestation of Total Quality Management by Singapore Airlines

ISBN: 0201420872

 

You can get it at Borders too.

 

Cheers,

 

 

^^^

 

i think thats the one, it has a a345 leadership on the cover, its a hard cover book.

 

Thanks.

Will check if Borders ADL has it.