KFlyer From Sri Lanka, joined Mar 2007, 1208 posts, RR: 0 Posted (2 years 9 months 1 week 2 days 23 hours ago) and read 3807 times:
Report states that Sri Lankan Government officials are considering selling an equity stake of UL to Temasek. UL is currently under heavy financial burdens under the governance of President's Brother in Law. http://www.sundaytimes.lk/100815/News/nws_04.html
Pity, recalling Ansett and VS
The opinions above are solely my own and do not express those of my employers or clients.
gardermoen From Australia, joined Jul 1999, 1518 posts, RR: 1 Reply 2, posted (2 years 9 months 1 week 2 days 21 hours ago) and read 3503 times:
This sounds messy. I thought the current government wanted full control of UL, and now this?
I can see political interference IF any private consortium was to run the airline.
Temasek, learn from Emirate's mistake.
jfk777 From United States of America, joined Aug 2006, 7345 posts, RR: 7 Reply 4, posted (2 years 9 months 1 week 2 days 20 hours ago) and read 3306 times:
WHY would Singapore Airlines want to touch this ? I doubt the Govrnment of Singapore would endorse this either ?
KFlyer From Sri Lanka, joined Mar 2007, 1208 posts, RR: 0 Reply 5, posted (2 years 9 months 1 week 2 days 20 hours ago) and read 3241 times:
It was SQ which provided launch assistance to UL back in 1979. Perhaps they might see some business case given Colombo's location. Despite the financial position, UL has some unique strengths which should not be underestimated.
The opinions above are solely my own and do not express those of my employers or clients.
gardermoen From Australia, joined Jul 1999, 1518 posts, RR: 1 Reply 6, posted (2 years 9 months 1 week 2 days 19 hours ago) and read 3199 times:
It has to be said that from a business case, UL is probably in its most promising position in its history, in regards to the return of peace and record inbound traffic into the Sri Lanka. However, on the downside the government appears to be in control of it and hence its debts are getting out of control.
Mihin needs to be folded 100% into Srilankan, how can they afford to run two airlines like this?
kaitak From Ireland, joined Aug 1999, 11952 posts, RR: 37 Reply 7, posted (2 years 9 months 1 week 2 days 15 hours ago) and read 2857 times:
I heard it reported that UL was interesting in acquiring A340-500s; now, if SQ wanted to retire its A345s and replace them with 777-200LRs, that might be their opportunity to do so; of course, that's not a reason in itself to acquire a stake in UL, but as Gardermoen says, the end of the SriLankan civil war means that UL and Sri Lanka has a lot of potential which did not previously exist.
KFlyer From Sri Lanka, joined Mar 2007, 1208 posts, RR: 0 Reply 8, posted (2 years 9 months 1 week 2 days 6 hours ago) and read 2562 times:
They later dropped the plans for 345s, fortunately. I doubt it'll work for them anyway. But if Temasek acquires, and SIA manages, we will definitely see some 777s in UL colours soon. The 343s are already way too old. With SIA they will easily get the expertise needed for a move to Boeing, and perhaps even some 350/787 slots, which is what UL really needs at this stage. And hopefully, it will bring some non-political management in
The opinions above are solely my own and do not express those of my employers or clients.
macsid From Netherlands, joined Jun 2009, 16 posts, RR: 0 Reply 9, posted (2 years 9 months 1 week 1 day 19 hours ago) and read 2246 times:
I'm a little confused with the posts here so far:
Temasek is the investment arm of the Government of Singapore. Although it also owns a 54+% stake in SIA, I do not see that Temasek investing in UL automatically makes this an investment decision or management by SQ management. This may well be a move by Temasek to make an investment which it can cash out of later in time, purely the way you or I would trade equities on the NYSE or LSE.
huaiwei From Singapore, joined Oct 2008, 1086 posts, RR: 1 Reply 10, posted (2 years 9 months 1 week 1 day 19 hours ago) and read 2190 times:
Quoting macsid (Reply 9): Temasek is the investment arm of the Government of Singapore. Although it also owns a 54+% stake in SIA, I do not see that Temasek investing in UL automatically makes this an investment decision or management by SQ management. This may well be a move by Temasek to make an investment which it can cash out of later in time, purely the way you or I would trade equities on the NYSE or LSE.
You are completely right. Some just love to assume SQ = Temasek,
I would think Temasek is just making a normal investment in a company it sees as one which can give it positive returns.
It's huaiwei...not huawei. I have nothing to do with the PRC! :)
KFlyer From Sri Lanka, joined Mar 2007, 1208 posts, RR: 0 Reply 12, posted (2 years 9 months 1 week 23 hours ago) and read 1798 times:
It was my opinion that if Temasek was to be the 'dealer' SQ will in fact be the buyer - or that Temasek might consult SQ to manage UL. Sorry if I am mistaken.
However, if SQ by any chance takes over, a 777 in UL colours will be a big possibility. And, by expertise, I meant that UL did not have any expertise on Boeing ( not the other way around ).
The opinions above are solely my own and do not express those of my employers or clients.
huaiwei From Singapore, joined Oct 2008, 1086 posts, RR: 1 Reply 13, posted (2 years 9 months 1 week 15 hours ago) and read 1597 times:
Quoting KFlyer (Reply 12): It was my opinion that if Temasek was to be the 'dealer' SQ will in fact be the buyer - or that Temasek might consult SQ to manage UL. Sorry if I am mistaken.
Your opinion does not make much sense. Temasek is a sovereign fund. SQ is an airline. Temasek has some investments in SQ. Why in your opinion would SQ require Temasek to be the dealer when it can negotiate on its own? And why should Temasek remain merely as the dealer when it has far more capital to be the buyer?
And why would an investor "consult" one of its shareholdings on its personal decisions to invest in another airline? Did Temasek "consult" SQ when it bought a stake in Jetstar? I fail to see the logic in this.
It's huaiwei...not huawei. I have nothing to do with the PRC! :)
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