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Report: Gov't May Sell Singapore Air  
User currently offlineKeesje From , joined Dec 1969, posts, RR:
Posted (13 years 11 months 6 days 8 hours ago) and read 1484 times:

SINGAPORE (AP) - Singapore transport minister said the government may sell it's majority stake in Singapore Airlines, newspapers reported Sunday.

The government could sell its 56.8 percent stake in the airline if there were good reasons to do so, Singapore Transport Minister Yeo Cheow Tong was quoted as saying in the Straits Times.

"The key thing is how do we make sure that as many airlines as possible fly into Singapore?" said Yeo. "If other airlines can do it better than our own airline, so be it."

This may also lead to Singapore Airlines learning to make more rational trade-offs in service. It is not so difficult to offer a great product when big brother is paying the bills....


Reality will land at Singapore Airlines, bills will have to be paid with Money instead of Pride... a tough learning experience for them.

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7 replies: All unread, jump to last
User currently offline'Longreach' From Australia, joined Jul 2001, 505 posts, RR: 0
Reply 1, posted (13 years 11 months 6 days 3 hours ago) and read 1423 times:

Interesting... so who would buy it?
and around how much for?

User currently offlineKeesje From , joined Dec 1969, posts, RR:
Reply 2, posted (13 years 11 months 6 days 1 hour ago) and read 1397 times:

IMO it might be SQ's entry into the real world ... Aggressive stock holders asking quick ROI ...

Who could buy (part of the) the stake ? LH, AXA, BA ?

Man, this must be a culture shock for some a.net / airlinequality.com members ...

User currently offlineHkg82 From Hong Kong, joined Apr 2002, 1331 posts, RR: 1
Reply 3, posted (13 years 11 months 5 days 23 hours ago) and read 1393 times:

SQ is an asset for the Singapore Government and if they sell them they're going to get a fuckload of cash. The economic liberalization isn't just taking place in the aviation sector, but in other industries as well, such as shipping (as the article states). If Singapore wants to compete with Hong Kong & improve its competitiveness in industries where it maintains a leading edge, as they're no longer reliant on manufacturing, then this is the way to go.


User currently offlineMarara From Australia, joined Oct 2001, 680 posts, RR: 0
Reply 4, posted (13 years 11 months 4 days 11 hours ago) and read 1344 times:

wouldnt it be funny if BA or QF bought into SQ. wouldnt that cause a rukus !!! lol doubt it.

Comments.... Big grin

I like work: it fascinates me. I can sit and look at it for hours. Jerome K Jerome
User currently offlineDocpepz From Singapore, joined May 2001, 1971 posts, RR: 3
Reply 5, posted (13 years 11 months 4 days ago) and read 1299 times:


for your information, SIA does not receive ANY subsidies from the Singapore govt. It does not receive any special treatment at Changi airport and has to to pay the full service fees as ANY airline flying into Changi does.

When SIA in the seventies asked the govt for money to buy some jumbos, the govt said NO. They have had a tough learning experience. Their former chairman JY Pillay built up the airline from SCRATCH. No help from outside whatsoever. THe govt only held a stake in them through an investment company called Temasek Holdings Private Limited, but SIA employees are not on the govt payroll. It's been SIA that has been giving the govt money, and not the other way round.

THey have continously made a profit anyway since their coming into existence. So please cut your sweeping statements thank you. A little knowledge is always a dangerous thing.

User currently offlineGreg From United Kingdom, joined May 2005, 0 posts, RR: 0
Reply 6, posted (13 years 11 months 4 days ago) and read 1292 times:

Actually, their loans are quaranteed by the Singapore gov't which is quite astute at negotiating favorable terms. To say SIA has not recieved gov't help is ridiculous..it's practically their chosen intrument for goodwill worldwide.

These favorable terms could evaporate should they go private. Those A380's may be a bit more costly to run than originally thought...

On the plus side, any business would envy SIA's cash flow...their strongest asset.

Source: Senior Lending Officer, Credit Lyonnaise

User currently offlineJubilee777 From Singapore, joined May 1999, 528 posts, RR: 1
Reply 7, posted (13 years 11 months 3 days 8 hours ago) and read 1259 times:

Simple Calculations:

1% of SIA stock : 13,038,000
25% : 325,950,000
Price: est. S$12000 per 1,000 shares

25%: S$3.9114Billion = US$2.2Biliion


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