keesje
Posts: 8864
Joined: Thu Apr 12, 2001 2:08 am

Report: Gov't May Sell Singapore Air

Mon Jul 01, 2002 5:51 pm

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....

http://story.news.yahoo.com/news?tmpl=story&u=/ap/20020630/ap_on_bi_ge/singapore_airlines_1

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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'Longreach'
Posts: 457
Joined: Fri Jul 27, 2001 11:36 pm

RE: Report: Gov't May Sell Singapore Air

Mon Jul 01, 2002 10:56 pm

Interesting... so who would buy it?
and around how much for?
 
keesje
Posts: 8864
Joined: Thu Apr 12, 2001 2:08 am

RE: Report: Gov't May Sell Singapore Air

Tue Jul 02, 2002 12:43 am

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 ...
"Never mistake motion for action." Ernest Hemingway
 
hkg82
Posts: 1303
Joined: Fri Apr 05, 2002 4:24 pm

RE: Report: Gov't May Sell Singapore Air

Tue Jul 02, 2002 2:37 am

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.

Hkg82.
 
Marara
Posts: 634
Joined: Fri Oct 19, 2001 11:29 pm

RE: Report: Gov't May Sell Singapore Air

Wed Jul 03, 2002 2:24 pm

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

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docpepz
Posts: 1706
Joined: Thu May 24, 2001 8:20 pm

RE: Report: Gov't May Sell Singapore Air

Thu Jul 04, 2002 1:39 am

Keesje

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.
 
Greg
Posts: 5539
Joined: Sat May 28, 2005 1:11 am

RE: Report: Gov't May Sell Singapore Air

Thu Jul 04, 2002 2:00 am

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
 
Jubilee777
Posts: 502
Joined: Thu May 20, 1999 10:34 pm

RE: Report: Gov't May Sell Singapore Air

Thu Jul 04, 2002 5:44 pm

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

J777