wirraway
Posts: 1294
Joined: Sun Mar 25, 2001 4:32 am

Singapore Warns Of Crisis

Thu Sep 20, 2001 9:43 pm

Singapore Airlines Warns Of Crisis; To Cut Costs

By Shen Hong
Of DOW JONES NEWSWIRES



SINGAPORE (Dow Jones)--Echoing the dire straits plaguing other major global airlines, Singapore Airlines (Singapore: SIAL.SI - news) Ltd. (P.SAL) Thursday warned that it's entering the most difficult period in its history.

Painting a gloomy picture for its near-term outlook, SIA said it's reviewing its operations and will implement a series of painful cost-saving measures. Although not surprised by the news, analysts say the already-battered stock may not be able to avoid further selloffs Friday.

In one of the airline's most strongly worded statements, SIA's Deputy Chairman and Chief Executive Cheong Choong Kong told the airline's staff that the current woes are just the beginning and that they must prepare for the worst.

"This is an important message and an unhappy one," Cheong said. "The pain is only just starting; nobody dares predict when or how it will end."

While high fuel costs and poor economic conditions have made life tough for SIA in the past 12 months, "the immediate future confronting commercial aviation is far more serious," Cheong said.

Air traffic, particularly to the U.S., has declined in the wake of the terrorist attacks in New York and Washington, adding that costs are rising, particularly those of fuel and insurance.

The situation will worsen if the U.S. launches military strikes which could trigger terrorist reprisals, he said.

In order to cope with the difficulties, SIA will adjust capacity to match demand and will trim budgeted growth, "even if it means lower aircraft utilization," Cheong said.

In addition, all planned expenditure, except the essential, will be deferred, slowed down or canceled, "including capital expenditures on projects dear to us," he said.

Staff recruitment will cease, except in one or two areas, he said.

"Many airlines are starting to retrench large numbers of staff. We ourselves may not be able to avoid retrenchments, but we will look at other cost-reducing measures first," he said.

While employees and unions may be called upon to make sacrifices, Cheong said that when needed, SIA's senior management will take the lead. - - 20/09/01 11-41G
 
Cathay Pacific
Posts: 1715
Joined: Sat May 27, 2000 1:29 am

RE: Singapore Warns Of Crisis

Thu Sep 20, 2001 9:52 pm

Wow.......if SIA is entering one of their worst period.....how about other Asian airlines....eg CX, JAL, KE, TG etc.........

 Smile/happy/getting dizzy Smile/happy/getting dizzy Smile/happy/getting dizzy Cathay Pacific.,....The Heart of Asia  Smile/happy/getting dizzy Smile/happy/getting dizzy Smile/happy/getting dizzy
cathay pacific, now you're really flying
 
'Longreach'
Posts: 457
Joined: Fri Jul 27, 2001 11:36 pm

RE: Singapore Warns Of Crisis

Thu Sep 20, 2001 10:06 pm


If they are still the most profitable airlines on the planet why are they saying they will reduce costs? They must already have one of the lowest cost network due to their huge profit and under 100 a/c fleet.

I think this is an excuse to cut staff numbers or get them to reduce their salaries even further.

But I probably am wrong.
 
PerthGloryFan
Posts: 725
Joined: Fri Oct 27, 2000 9:48 pm

RE: Singapore Warns Of Crisis

Thu Sep 20, 2001 10:06 pm

Methinks the kiwi of the south pacific is also rapidly becoming an albatross necktie SIA is looking to rid it self of ... but I don't see a rush of takers.
It looks like Helen the Red may need to re-nationalise AirNZ/TEAL/NAC if it is to last beyond a week.

Also....
In addition, all planned expenditure, except the essential, will be deferred, slowed down or canceled, "including capital expenditures on projects dear to us," he said.
.... so no blue, white & gold A380s for a long while it would seem.

Just a month ago a main issue facing civil aviation globally was airspace management, especially in N. American & Europe, some how I don't see these systems being under significant traffic pressure for some time now.

If an airline like SQ is pulling back, things are becoming very bleak indeed for our aviation world.

Meanwhile, anyone want to buy an airport (well the long term operating lease actually, not the land itself), the busiest one RPTwise in the SW Pacific - with crazy inefficient terminal layout, crazier still noise abatement rules, going cheap, all enquiries to the Australian govt, all offers considered, timeline extended by one week due to underwhelming interest.

September 2001 - who'll ever forget it  Sad

PGF
 
Guest

RE: Singapore Warns Of Crisis

Thu Sep 20, 2001 10:25 pm

It is a pitty that SQ is recognising this after 10 days from the event. This is due to the fact that they have heavy investment in Virgin Atlantic and Air NZ (failed venture) which will under cut its balance sheet this year. Dr CK Cheong has plenty to answer for at the next AGM.

I bet Singapore_Air is crying as he reads this message on this forum about SQ's "most difficult" period in its history. Please do not wee your pants Singapore_Air. I suggest you change your interest from Singapore Airlines to GIRLS...you will find this more interesting! I did when I grew up! You will love it and probably forget about SQ. Grow up smarty pants and concentrate on your school work. Leave the aviation problems to us (the consultants) to work on...please concentrate in getting high marks or otherwise you might end up cleaning toilets in Singapore Airlines aircrafts...that will not be good would it.
 
Mr.BA
Posts: 3310
Joined: Sun Sep 24, 2000 12:26 pm

RE: Singapore Warns Of Crisis

Thu Sep 20, 2001 10:31 pm

I would say SQ did not managed to buy Ansett Australia, is a blessing in disguise. If they had manged to, I guess their financial woes will be burdened further.

alvin
Boeing747 万岁!
 
chepos
Posts: 5938
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RE: Singapore Warns Of Crisis

Thu Sep 20, 2001 10:55 pm

Anzett please dont get me wrong but the part that TG992 might have confused was when you finished saying- "I did when I grew up".
Chepos
Fly the Flag!!!!
 
Singapore 777
Posts: 980
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RE: Singapore Warns Of Crisis

Thu Sep 20, 2001 11:04 pm

Such a management consultant you are using such profane words.
 
Cathay Pacific
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RE: Singapore Warns Of Crisis

Thu Sep 20, 2001 11:14 pm

CX_flyboy:

how bad you think CX is affected by the whole matter

 Smile/happy/getting dizzy Smile/happy/getting dizzy Smile/happy/getting dizzy Cathay Pacific.....The Heart of Asia  Smile/happy/getting dizzy Smile/happy/getting dizzy Smile/happy/getting dizzy
cathay pacific, now you're really flying
 
docpepz
Posts: 1706
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RE: Singapore Warns Of Crisis

Fri Sep 21, 2001 12:02 am

SIA should write off their investment in Air NZ. At least it won't be reflected in this year's accounts, but in 1999's(if that's the yr they bought it) TO pump in an extra $100 million into a small South Pacific Airline is HARDLY a strategic investment.

Their losses from Air NZ ammounts to $275 million (Sing Dollars)

Their present woes have little to do with the terrorist attacks. SIN-USA accounts for only 10% of their revenue. Europe-SIN-Australia accounts for 40%. That's where they're getting screwed. They've just lost a huge customer base in Australia. They only had a 25% stake in Air NZ and didn't have management control. Not that the Aussies are gonna care. According to Singapore newspapers, SIA's reputation in Australia is not all that wonderful now. Could the Australians out there please verify this?

Anyway, as an AIRLINE, Singapore Airlines is an excellent airline. As an Investment company, hmmm.......... That's the general feeling here in Singapore anyway. Like, how did they screw themselves up so badly down under? When they thought they were in charge of everything............

Anyway guys, to SIA, a profit below Sing$1 billion is a calamity. They will probably make a profit of $100+million for this financial year, which is disastrous as far as they are concerned. They have HEAPS of reserves. However, if they keep throwing their cash at worthless investments, it'll be a completely different picture a few years down the road. THeir 2 major investments ended up bad. Air NZ was a catastrophic failure. Virgin Atlantic's gonna announce a loss. It's good they didn't get Air India!

TO end, I'd like to alert you guys to the following letter that appeared in the Forum page of The Straits Times on Tuesday:



----------------
After Ansett debacle, what next, SIA?
I REFER to the reports on Ansett's financial troubles (ST, Sept 15), and consider that Singapore Airlines (SIA) was very fortunate to have been saved by the New Zealand government from a hefty loss, by not being allowed to carry on with its proposal to boost its stake in Air New Zealand (Air NZ) from 25 per cent to 49 per cent, at more than three times the current price of its shares.

Air NZ shares have since traded at below NZ$0.30 (S$0.22). On top of this, SIA also has to bear its share of the huge write-off on Air NZ's wholly owned subsidiary, Ansett Airlines, which has had to be placed in voluntary administration.

SIA now has another major decision to make.

Should it now spend NZ$150 million to raise its 25-per-cent stake to 34 per cent at the current depressed price, and perhaps incur more losses if Air NZ does not pull through the current crisis?

At the SIA annual general meeting on July 14, I asked why SIA was so keen on doubling its stake in Air NZ and its Ansett Airlines subsidiary when both were desperately in need of a very substantial injection of funds.

Less than two months after the AGM, Ansett, which was part of SIA's long-term plans, had to cease operations after the appointment of an administrator.

I would like to ask SIA if it still believes the current crisis could have been avoided, had the New Zealand government given its approval earlier for SIA to raise its 25-per-cent Air NZ stake to 49 per cent.

And with Standard & Poor's downgrading Air NZ's credit rating by two notches to B-minus, its future seems even dimmer. Unfortunately, SIA shareholders have to hold back their queries for 10 months until the next AGM.


DENIS DISTANT


 
SInGAPORE_AIR
Posts: 11619
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RE: Singapore Warns Of Crisis

Fri Sep 21, 2001 12:37 am

Well some people have to go to school. However it seems that some people on this thread didn't have an education when they were young. What a shame. I pity you.

Let's not start with the facts first, let's start with the immaturity.

Wirraway: Unfortunately, that is not my response. Sorry but I'm going to spoil your fantasy.

Anzett: LOL! Why don't you make up your mind and tell us if you are a consultant, or an AN employee in Sydney! And no, i won't leave it you biased "consultants" like you. Unfortuantely, your attempts to be rid of me and spread SIA-hate across the forums will be stopped.

Cathay Pacific: If Singapore Airlines isn't faring well as some may suggest, how about the airline that you support eh?

Anzett: You were JohnWest. therefore, are you sure that you are a woman?

CX_flyboy: Unfortunately for you, I have no committed suicide. It's unfortunate that you hate me so much that you would like me to be rid of this planet.

Ok. I have read the article. There are updates on Yahoo Finance that haven't been uploaded yet.

I can say this. SIA will whether the storm. SIA reported on Tuesday that it's bookings have not sufferred. Just yesterday, CX and All Nippon Airways (A Star Alliance Member), indicated the same, following SIA.

SO it seems that the Asian airlines are doing much better in this crisis than their European counterparts.

There is no doubt that this is a crisis in the airline industry. SIA is not immune to that. You only have to look at the decline in profits during the Asian Economic Crisis in the 90s to see that. So don't get up on yer high horse yet people.

SIA is cutting costs. Of course, I wouldn't have expected any different. Staff will have to go and I hope that the directors will cancel their raise that they earned last FY.

In 1998, all Singapore Airlines employees refused a pay rise (which is annual). This was praised worldwide by analysts. The airline, though pays relatively little by international standards to its staff, has shown and will again, that it can stand up in unity and go through the windshear (it's not a storm anymore I've decided).

I have decided. I'm going to consult the SIA annual report for some figures. Please hold.
Anyone can fly, only the best Soar.
 
SailorOrion
Posts: 1959
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RE: Singapore Warns Of Crisis

Fri Sep 21, 2001 12:46 am

Good counter-attack Singapore_Air!  Big grin

I am trying to be objective (although this is always hard), and to be honest, SQ is a nice airline, but not my favourite one, for one reason or another. However, I also think the SQ is definetly one of the best-run businesses in aviation on this planet right now, maybe even the best (along with Southwest). Whenever you like something or not, numbers dont lie.

SailorOrion
 
SInGAPORE_AIR
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RE: Singapore Warns Of Crisis

Fri Sep 21, 2001 12:52 am

The Americas contributed to 24% of SIA's revenue last year. Now for arguments sake (i know this is not business like), I take 24% off SIA's record profit last year, they will make S$1 177 240 000. Now, if I decrease each region by 20%...(that's what the US airlines are cutting by I take it)... then...

OK I have decreased each region by 20% and Americas by 100%

Therefore, 941 792 000 is the net. Fuel is cheaper now than before, so I won't up the profit just for that.

Now then, minus ANZ which is 300 million (for arguments sake), SIA will have 641 792 000 SGD Profit for this coming Financial Year.
Anyone can fly, only the best Soar.
 
SInGAPORE_AIR
Posts: 11619
Joined: Mon Nov 13, 2000 4:06 am

RE: Singapore Warns Of Crisis

Fri Sep 21, 2001 1:28 am

Let us now also assume that VS will make a loss of £100 million, which means SIA will have 241 792 000 SGD of Net profit after tax.

Now off to Singaporeair.com to convert currency!

Meanwhile....

-----
Impact Of Global Situation On Singapore Airlines
20 September 2001


Like other international commercial airlines, Singapore Airlines (SIA), expects to enter a difficult trading period as a result of last week's events in the United States, which follow a slowdown in the economy in the past 12 months.

Following last week's terrorist attacks, SIA's traffic has declined on services to the United States. Forward bookings on the transatlantic services to New York and Chicago in the coming weeks have declined about 10 per cent compared with pre-attack levels. However, bookings on US services across the Pacific to Los Angeles, San Francisco and Vancouver, are generally holding, as of now. We are continuing to closely monitor the forward bookings and uplift levels.

The slowdown in the economy has already affected traffic flows and freight traffic systemwide. The terrorist attacks have had an additional impact, with people now appearing to be less inclined to travel for business or pleasure. Costs continue to rise, particularly those of fuel and insurance.

From 1 October, SIA, like other airlines, will face increased insurance cost. As a result of the attacks in the United States, a war surcharge will be levied in respect of passenger liability cover, equivalent to USD1.25 per passenger, on all flights. This surcharge will be passed on to the customer.

In light of the prevailing situation, SIA has reviewed its operating patterns. In the near future, some frequency adjustments will be made to the following services:

* Singapore - Amsterdam - New York (Newark) - currently four per week;
* Singapore - Hong Kong - currently seven per day;
* Singapore - Kaohsiung - currently five per week;
* Singapore - Kuala Lumpur - currently ten per day;
* Singapore - Surabaya - currently 12 per week.

In the coming weeks and months, if the situation deteriorates, capacity systemwide will be reviewed to match demand. Budgeted growth will also be trimmed, even if that means lower aircraft utilization.

Non-essential expenditure will be deferred, slowed down or cancelled. Retrenchment cannot be ruled out, but other cost-reducing measures will be pursued first, before retrenchments are considered. Staff recruitment, other than in one or two essential areas, will be frozen until the situation improves.

The reality is that if military action takes place with subsequent terrorist reprisals, passenger traffic and cargo loads can be expected to decline further. There is also the possibility of the closure of vital air spaces in such circumstances. If these events materialise, further cuts in services would be needed and costs will rise. SIA has made contingency plans to use alternate flight paths if the normal flight paths are closed to air traffic, to ensure passenger safety is not compromised.


-------
Anyone can fly, only the best Soar.
 
GuyBetsy1
Posts: 807
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RE: Singapore Warns Of Crisis

Fri Sep 21, 2001 2:33 am

Just because the government made the announcement... and then just because all other airlines (mainly US airlines) are saying it will be so for them,... and just because there seem to be a trend going on.

That's the way the Singapore society works. And that's the way how Singapore Airlines works too. Just because 'other people' are suffering, they 'have to suffer' to... and of course, it's a perfect excuse to cut pay rises!

Trust me, SQ will still post a bigger profit than most other airlines.

The low down is that most people will avoid taking American carriers. And the European carriers carry more Transatlantic traffic than SQ does, so if the slowdown in American travel will affect the public, the European carriers (being allies of the US during this crisis) will feel it too. I think most people will avoid most of the above carrier and fly with the asian ones. I'd say travelling on the likes of say, KU, GF, EK, TG,CX, MH, SQ would be more common!
 
SInGAPORE_AIR
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RE: Singapore Warns Of Crisis

Fri Sep 21, 2001 2:42 am

GuyBetsy1: Your optimism is appreciated but not shared. I am preparing for the worse, and trust me, this is the worst of times!

$138944948.86

That is the net profit that I expect SIA to post. Although I have exaggerated that they will not make a single cent on the US routes. In addition, I have not calculated the ex-gratia 6.04 month bonus payment to employees.
Anyone can fly, only the best Soar.
 
fanofjets
Posts: 1978
Joined: Thu Apr 13, 2000 2:26 am

RE: Singapore Warns Of Crisis

Fri Sep 21, 2001 4:49 am

I am glad this thread became more civilized as I read on; I was about to pop the old "Which is better, Airbus or Boeing?" question in the hope of more sensible replies (which isn't saying much). I am glad to see the last several posts stick to the facts and informed opinion.

I believe that the world is in for economically difficult times. I also believe that the worst has yet to come. However, I am also confident that things will get better in the long run. Then we can get back to our A vs. B wars.
The aeroplane has unveiled for us the true face of the earth. -Antoine de Saint-Exupery
 
The Coachman
Posts: 1192
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RE: Singapore Warns Of Crisis

Fri Sep 21, 2001 5:31 am

Singapore_Air,

Your business analysis is flawed. You might admit it to being non-business-like but I tell you, it's not even close.

Firstly, SQ will probably post a loss on the US routes, at your current analysis, SQ breaks even.

Secondly, insurance costs will hit hard.

Thirdly, since there will be fewer passengers, fares will be more heavily discounted.

Fourthly, you will lose more than 20% from Australia. Public opinion of SIA is not great, though not as bad as AirNZ.

Fifthly, implementation of their new IFE and new biz class will cost a lot of money, sure, one-off, but will cost money.

Need I go on?

The Coachman
M88, 722, 732, 733, 734, 73G, 73H, 742, 743, 744, 752, 762, 763, 772, 773, 77W, 320, 332, 333, 345, 388, DH8, SF3 - want
 
SInGAPORE_AIR
Posts: 11619
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RE: Singapore Warns Of Crisis

Fri Sep 21, 2001 5:49 am

The Coachman: Well since you're on your very very high horse, would you like to do better????

My figures are extremely exaggerated. Notice that he / she did not mention my figures concerning Europe, Africa and Asia.
Anyone can fly, only the best Soar.
 
User avatar
lindy field
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RE: Singapore Warns Of Crisis

Fri Sep 21, 2001 6:06 am

Jimminy! I haven't seen such lack of civility on airliners.net since the demise of Roots Air.
 
SInGAPORE_AIR
Posts: 11619
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RE: Singapore Warns Of Crisis

Fri Sep 21, 2001 6:12 am

Hi Lindy field. I know what you mean.
Anyone can fly, only the best Soar.
 
CX Flyboy
Posts: 6030
Joined: Sun Dec 26, 1999 6:10 pm

RE: Singapore Warns Of Crisis

Fri Sep 21, 2001 10:59 am

Singapore_Air,

I never said that I hated you. It was a joke. Lighten up would you. You seem to be a very aggressive 13-15 yr old, and I am not sure if you are aiming for a flying job at SQ or not, but you do know they test your personality for agressiveness and things don't you?
 
9V-SPK
Posts: 1576
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RE: Singapore Warns Of Crisis

Fri Sep 21, 2001 3:54 pm

Everyone Airline Have different crisis nower days....and just like SIA,they should make the worst idea...But Still I'll support SIA FOREVER!!!!!!!!!!
 
SInGAPORE_AIR
Posts: 11619
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RE: Singapore Warns Of Crisis

Fri Sep 21, 2001 4:11 pm

CX: I have bery good PR skills thank you and i am cool under pressure. But not to people who want me to commit suicide / wish that SIA burns in hell (not you).

9V-SPK: Hear hear!
Anyone can fly, only the best Soar.
 
9V-SVA
Posts: 1747
Joined: Wed Aug 29, 2001 3:54 pm

RE: Singapore Warns Of Crisis

Fri Sep 21, 2001 4:15 pm

QUOTE:
Maybe Singapore_Air commited suicide he was so depressed!!!!

CX Flyboy, now that was rude and uncalled for.

QUOTE:
Understand thick head...please learn English before making comments! Dick Head!

Anzett, AKA Johnwest, would you, a management consultant, please tell me how you got here?


9V-SVA  Big thumbs up


9V-SVA | B772ER
 
CX Flyboy
Posts: 6030
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RE: Singapore Warns Of Crisis

Fri Sep 21, 2001 4:41 pm

Why is everyone here so serious? Lighten up!
 
SInGAPORE_AIR
Posts: 11619
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RE: Singapore Warns Of Crisis

Fri Sep 21, 2001 6:51 pm

When someone tells someone to commit suicide, it is not taken lightly
Anyone can fly, only the best Soar.
 
CX Flyboy
Posts: 6030
Joined: Sun Dec 26, 1999 6:10 pm

RE: Singapore Warns Of Crisis

Fri Sep 21, 2001 7:10 pm

When did I tell you to commit suicide?

Ok. I apologise. I am sorry you took it the wrong way. I did not mean to insult you. I have no reason to. I have never even met you. So what if you support an airline I don't. That's petty stuff, I would never seriously wish death upon anyone for that. Happy?
 
Guest

RE: Singapore Warns Of Crisis

Fri Sep 21, 2001 7:21 pm

This is a proof that Singapore_Air cannot handle hearing bad news about his lovely airline. Well, it is time to wake up Singapore_Air and face the reality of commercial issues.

You are a little kid and do not understand the commercial issues facing airlines. Please do not give me the rubbish saying I understand Business because you don't.

How can a 15-years old kid get upset with his lovely hugging airline when SQ would not give a dame about him. Time to give up Singapore_Air and time to find girls and have good time...you will go wild when you meet girls...I did! I am speaking from experience...I used to be a airline hugger at your age but when I grew up and found girls...I went WILD.
 
User avatar
VapourTrails
Posts: 2280
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RE: Singapore Warns Of Crisis

Fri Sep 21, 2001 7:22 pm

 Sad Now after reading this thread, I am depressed!! (no not really but you know what I am getting at). Please lighten up here, and HAVE FUN!! and Singapore_Air choose your words carefully.

...Now what was the topic???!!
From Australia. Qantas - Spirit of Australia.
 
wirraway
Posts: 1294
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RE: Singapore Warns Of Crisis

Fri Sep 21, 2001 8:17 pm

Friday September 21, 6:42 PM (Singapore)

Singapore Airlines shares plunge after layoff warning
SINGAPORE, Sept 21 (AFP) -

Singapore Airlines Ltd. (SIA) shares plummeted 6.3 percent Friday after it warned of possible layoffs and declared a "war surcharge" after last week's terrorist attacks in the United States.



SIA closed 50 cents weaker at 7.45 Singapore dollars, as the key Straits Times index plunged 5.5 percent to 1,241.29 points.

The blue chip stock has now fallen 3.55 dollars or 32.3 percent from its close of 11 dollars on September 11, just hours before three hijacked planes crashed into the World Trade Center in New York and the Pentagon in Washington.

"The slowdown in the economy has already affected traffic flows and freight traffic system-wide. The terrorist attacks have had an additional impact with people now appearing to be less inclined to travel for business or pleasure," SIA, Asia's most profitable airline, said Thursday.

"Costs continue to rise, particularly of fuel and insurance," SIA added.

It declined to comment on its revenue losses since September 11 but said forward bookings to New York and Chicago had fallen by 10 percent compared to levels before the attacks.

The carrier added that to cover higher insurance costs from October 1, it will impose "a war surcharge," equivalent to 1.25 US dollars per passenger, on its customers.

SIA deputy chairman Cheong Choong Kong also told employees Thursday that staff recruitment would cease and that the airline would look for other cost-reducing measures before contemplating retrenchments.

He said the airline would review its operations as it entered "the most difficult period" in its history but did not go into detail about the spending cuts.

"The comments by Cheong Choong Kong highlight the difficulties of these unprecedented times. SIA does not usually cut staff," said Hong Kong-based Credit Suisse First Boston analyst Nam Nguyen, who did not rule out aircraft order deferments and cancellations.

The SIA group employs 28,000 people, half of them with the airline itself and the rest with subsidiaries.

The airline has ordered up to 25 A380s from Airbus and another six jumbo freighters from Boeing Co., deals costing 8.6 billion and 1.3 billion dollars respectively.

Nguyen said he expects SIA's year to March 2002 net profit to fall below 500 million Singapore dollars, down from 1.163 billion the previous year.

He said the aircraft suppliers had no choice but to negiotate with SIA, a big buyer of aircraft.

Kim Eng Securities research head Seah Hiang Hong, who has also downgraded SIA's profit to 800 million dollars, told financial newswire AFX-Asia, an AFP subsidiary, the airline was preparing for the worst but added: "The saving grace is that SIA can take it better than other airlines."

Daiwa Institute of Research said a report: "This is a (difficult) time ... worse than the Gulf War and the Asian crisis (but) we think SIA will still remain profitable and passengers will likely to choose to fly on SIA during this period of (heightened) safety concerns."
 
SInGAPORE_AIR
Posts: 11619
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RE: Singapore Warns Of Crisis

Fri Sep 21, 2001 8:59 pm

Nothing new but an interesting article nonetheless.
Anyone can fly, only the best Soar.
 
Jubilee777
Posts: 502
Joined: Thu May 20, 1999 10:34 pm

RE: Singapore Warns Of Crisis

Fri Sep 21, 2001 9:28 pm

Note:

Username: anzett
Real Name: Gina Madrid
E-mail: gina_madrid@hotmail.com
Gender: Female
Age: 36-45


Her (or his / it ) latest post:

I used to be a airline hugger at your age but when I grew up and found girls...I went WILD.

I see what you are driving at TG992 Big grin Big grin

Jubes

 
SInGAPORE_AIR
Posts: 11619
Joined: Mon Nov 13, 2000 4:06 am

RE: Singapore Warns Of Crisis

Fri Sep 21, 2001 9:33 pm

LOL!
Once again, Anzett my dear, you have shown yourself to be rash. I pity you.
Anyone can fly, only the best Soar.
 
'Longreach'
Posts: 457
Joined: Fri Jul 27, 2001 11:36 pm

RE: Singapore Warns Of Crisis

Fri Sep 21, 2001 10:10 pm


Oh my god!! a WAR SURCHARGE??

What the friggen hell?

Now I have heard everything..... way to cash in on the situation. As if the people of the world werent feeling bad enough, SIA has to see it as a giant cash cow!!

I can't believe this!!

 
docpepz
Posts: 1706
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RE: Singapore Warns Of Crisis

Fri Sep 21, 2001 10:29 pm

Longreach, Qantas is also gonna impose a war surcharge from Oct 1. Go read www.smh.com.au

"Kim Eng Securities research head Seah Hiang Hong, who has also downgraded SIA's profit to 800 million dollars, told financial newswire AFX-Asia, an AFP subsidiary, the airline was preparing for the worst but added: "The saving grace is that SIA can take it better than other airlines." "

CAN YOU BELIEVE THAT??!?!?!??!??!??! They're going to make a SGD800 million profit. That's nearly US$470 million. And that warrants cost-cutting measures? Have they any sense of reality? Other airlines are talking of lossess in the tens of millions and just because SIA's profits are below SGD1 billion, that warrants cost-cutting measures?

Acutally, that's good news for them. They're probably the only airline which is gonna report a profit for this financial year. But they should have some sense of reality!

 
SInGAPORE_AIR
Posts: 11619
Joined: Mon Nov 13, 2000 4:06 am

RE: Singapore Warns Of Crisis

Sat Sep 22, 2001 2:05 am

Longreach, my dear. It seems that the Anzett flu has caught you. You have been rash without researching the facts about your favo(u)rite airline. What a shame. Let this be a lesson to you. Goodbye!
Anyone can fly, only the best Soar.
 
SInGAPORE_AIR
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RE: Singapore Warns Of Crisis

Sat Sep 22, 2001 3:15 am

Anzett: I didn't see your post there. Lucky that I did. If I cannot handle bad news about the lovely airline Singapore Airlines, why did I bother giving you lot such bad estimated net profit figures???/ Wouldn't that be totally illogical if I couldn't face the reality of commerical issues? Think about the numbers before you write my dear.

Um, excuse me, I do understand the commerical issues facing airlines. I'm not a dumbass / dumbarse. You underestimate me my dear. Again, don't think you can get rid of me.

I have come to the conclusion that you are either a man (which you most probably are), or a lesbian (nothing wrong with them though.) In addition, you have lost all credibility with your posts. You can't even lie properly about your location (LA vs SYD), your job (Management consultant vs Ansett employee!) or your sex (if you are indeed a man).

Goodbye my dear.
Anyone can fly, only the best Soar.
 
Guest

RE: Singapore Warns Of Crisis

Sat Sep 22, 2001 3:23 am

its not a war surcharge, its an insurance surcharge .. insurance agencies are charging everyone extra
 
SInGAPORE_AIR
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RE: Singapore Warns Of Crisis

Sat Sep 22, 2001 6:24 am

US$ are approximate and have been calculated at S$0.57: US$1 (last month's exchange rate)

----
STOCKWATCH - SIA extends losses on prospect for unprecedented job cuts
AFX Europe; Sep 21, 2001



Singapore Airlines shares extended recent losses after deputy chairman and CEO Cheong Choong Kong warned staff that retrenchements may be inevitable, a statement that further highlights the severe impact of the US terrorist attacks on the industry, dealers said.

At 10:56 am, SIA was down 0.40 sgd at 7.55.

The Straits Times index was down 63.87 points at 1,249.46.

SIA did not comment on how much revenues were lost following disruption of flights to and from the US in the wake of last week's attacks.

However, SIA said forward bookings to New York and Chicago had fallen by 10 pct compared to levels before the Sept 11 attacks.

"The slowdown in the economy has already affected traffic flows and freight traffic systemwide. The terrorist attacks have had an additional impact with people now appearing to be less inclined to travel for business or pleasure. Costs continue to rise, particularly those of fuel and insurance," SIA said.

"Forecasting for airlines is a wild card during this difficult time," Kim Eng Securities research head Seah Hiang Hong said.

Seah had last week downgraded his year to March 2002 net profit estimate for SIA to around 800 mln sgd. ( 456 MIllion USD)

With SIA now considering retrenchments, he said it looks like the airline is already preparing for the worst.

"The saving grace is that SIA can take it better than other airlines."

"The comments by Cheong Choong Kong highlight the difficulties of these unprecedented times. SIA does not usually cut staff," said Hong Kong-based Credit Suisse First Boston analyst Nam Nguyen, who now expects SIA to make a year to March 2002 net profit of below 500 mln sgd. (285 Million)

He said aircraft order deferments or even cancellations cannot be ruled out for SIA.

Although there are probably clauses in its contracts with Boeing and Airbus that prohibit cancellation/or deferment of confirmed orders, he said he is optimistic SIA and the aircraft suppliers can work out something.

"SIA is a big buyer of airplanes. They (aircraft suppliers) cannot really afford not to negotiate with SIA," he said.

In a report, Daiwa Institute of Research said it is maintaining its underweight recommendation on SIA.

It said it expects SIA's year to March 2002 net profit to fall to 542.30 mln sgd (US$ 309 Million) from 1.163 bln the previous year but net profit should rebound to 772.70 mln the following year. (440 Million USD)

"This is a (difficult) time - worse than the Gulf war and the Asian crisis (but) we think SIA will still remain profitable and passengers will likely choose to fly on SIA during this period of (heightened) safety concerns," it said.

jb/bmm

MMMM

World Reporter All Material Subject to Copyright
Anyone can fly, only the best Soar.
 
go canada!
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RE: Singapore Warns Of Crisis

Sat Sep 22, 2001 7:12 am

When i saw this thread i thought hmm, wirraway is making an objective post stating singapore isnt perky.

I then thought you would post, i expect anzett to really put a damper on thigns and for singapore air to bealt on like a sheep with foot and mouth.

i never expect soo many people casting doubt on singapore airlines business sense and for more than one source stating it has difficutlites.

I am not suggesting for a moment that singapore will go udner, thats very unlikely, though tempting i must say.

I expect singapore to survive, however with the two dead birds stuck around its neck, ie virgin atlantic, a lame duck if ever i saw one and that sraggy airline in the pacific, now whats its name, its so unimportant since it spilt with ansett, oh yes air new zealand.

I am glad i sold my singapore airlines shares last monday after the ansett farce (on the The Straits Times index ), ah i bet you didnt know that singapore air, i had shares in your lover, not many, a 1000 pound odd i think-well thats the money i got back, though thats after the broker fees(which are very rpicey, they all have gloomy faces on them, dont know why at the price they charge, oh and some sort of handling fee as well.

anyway i never paid much antention to them , didnt know until a few years back when i turned 18 and was told that i had ended up with singapore shares, i dont know why.

So i thought, oh isnt that nice i have a small piece. very tiddly mind you of an airline.

it wasnt until this year that i realise what an horrid company singapore airlines really are and that in truth that arent that special.

just another airline with the odd-skealton in the cupbaord and aring of dirty washing in public, i wonder when the rest of the horrors will come out?

mind you singapore air could have sacred them away with the sour face he must had had after reading these posts.

only joking singapore air!

i hope singapore survive, im sure they will but they arent perfect are they.

also dont let anzetts words hurt too much, hes bound to be upset, remember indriectly singapore killed ansett off, just remember that.

kindest regards to you all

have to goknow have work tomorrow, bloddy cheeek its a saturday.

bye!















It is amazing what can be accomplised when nobody takes the credit
 
SInGAPORE_AIR
Posts: 11619
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RE: Singapore Warns Of Crisis

Sat Sep 22, 2001 7:53 am

Well first of all congratulations on selling your SIA shares. I will still keep my 60 shares.  Smile/happy/getting dizzy

It's not saturday yet my dear! hehe

Anyway, there are no skeleton's in the cupboard. None were there anyway.

SIA are a special company in my mind and they will need to continually innovate and adapt to business situations. Remember that in the 1998 Crisis, they actually improved Products and Services rather than cut back. Of course, this will not happen this time on such a massive scale, but its something.

According to a website, SIA has deferred orders of some 744s. A wise move and is to be commended. poor Boeing and Airbus. I feel sorry for them  Sad  Sad  Sad

Oh well, they are both great and will come out well in some sort of way.

Goodnight people.
Anyone can fly, only the best Soar.
 
The Coachman
Posts: 1192
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RE: Singapore Warns Of Crisis

Sat Sep 22, 2001 9:32 am

Singapore_Air,

I'm not going to even try. Because:

a) I don't have complex computer programs with modelling and other econometric calculations on me.

b) It's all speculation but I would take a far more pessimistic line than what you've espoused.

c) I don't have the time to do calculations. It's not my full-time job.

What I'm trying to say is that unless you have the right info and econometric calculations, then it's pretty much impossible to guess how much SQ is going to make/lose.

The Coachman
M88, 722, 732, 733, 734, 73G, 73H, 742, 743, 744, 752, 762, 763, 772, 773, 77W, 320, 332, 333, 345, 388, DH8, SF3 - want
 
SInGAPORE_AIR
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RE: Singapore Warns Of Crisis

Sat Sep 22, 2001 3:50 pm

The Coachman, granted, however if you notice, my calculations are already below analysts expectations and are quite near to one that has predicted SIA's net profit for FY01/02.
Anyone can fly, only the best Soar.
 
go canada!
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RE: Singapore Warns Of Crisis

Sun Sep 23, 2001 2:39 am

singapore air, no offence, your 4, how did you buy your shares?
It is amazing what can be accomplised when nobody takes the credit
 
go canada!
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RE: Singapore Warns Of Crisis

Sun Sep 23, 2001 2:39 am

singapore air, no offence, your 14, how did you buy your shares?
It is amazing what can be accomplised when nobody takes the credit
 
SInGAPORE_AIR
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RE: Singapore Warns Of Crisis

Sun Sep 23, 2001 3:35 am

LOL! Go Canada!, no offence, but I ain't 14  Big grin Guess again.

My uncle gave me some birthday money a while ago. I think I bought 60 shares at around something I can't remember but he told me I have 60 shares. Can't remember exactly what returns I (he) gets, but he says they're good  Smile/happy/getting dizzy

I will never withdraw them. I probably own a door handle!

Why did you want to know????????????
Anyone can fly, only the best Soar.
 
Cathay Pacific
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RE: Singapore Warns Of Crisis

Sun Sep 23, 2001 3:51 am

i rather own the first class seat.......heehee

 Smile/happy/getting dizzy Smile/happy/getting dizzy Smile/happy/getting dizzy Cathay Pacific....The Heart of Asia  Smile/happy/getting dizzy Smile/happy/getting dizzy Smile/happy/getting dizzy
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wirraway
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RE: Singapore Warns Of Crisis

Sun Sep 23, 2001 11:33 am

Singapore_Air

Having received a warning from Airliners Net and having
my mickey taking post removed, I offer my apologies
to yourself for my ill attempt at humour at your expense,
to save any further problems, from this point onwards
I will no longer be replying to any post regarding yourself, again I apologise.

Wirraway
 
SInGAPORE_AIR
Posts: 11619
Joined: Mon Nov 13, 2000 4:06 am

RE: Singapore Warns Of Crisis

Sun Sep 23, 2001 4:11 pm

Wirraway:

I accept your apology although I think that if you choose your words more carefully in the future, you would be a person I would warmly welcome to post on threads that I may post in the future.

Meanwhile, would anyone like the full text of Cheong's speech?
Anyone can fly, only the best Soar.