SInGAPORE_AIR
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Singapore Airlines Load Factor Falls To 54%

Wed Apr 16, 2003 7:07 am

It is with sadness and distress that I report that in the first week of April 2003, Singapore Airlines Limited's load factor fell to an average of 54% for passenger flights.

"It's very difficult to say how much can be attributed to the war or to SARS or the global economic slowdown which has been depressed for some time. But definitely SARS is having an impact in this region especially North Asia, Southeast Asia and the West coast of the US," said Rick Clements - Vice President of Public Affairs.

The Airline said that the North Asian, Southeast Asian and West Coast of the U.S.A. regions were most affected. "The way the year has started has been very difficult for all airlines, not just for us. There was a serious drop in traffic and we don't know how long this situation will last," he added.

More information at the ChannelNewsAsia website

Information was gathered from the above hyperlinked webpage. Full information can be viewed by clicking the above hyperlinked webpage. Information was rephrased and not copied and pasted with the exception of quotes.
Anyone can fly, only the best Soar.
 
dutchjet
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RE: Singapore Airlines Load Factor Falls To 54%

Wed Apr 16, 2003 7:23 am

The SARS crisis has hit SQ and CX very badly - its interesting that while everyone was most concerned with how the Iraq situation would affect the airline business, the SARS illness may have a longer and more serious impact on airlines. People are simply not travelling at the moment, and, unless and until the SARS illness is better understood and treatments can be developed, it is unlikely that travel to and within certain destinations in Southeast Asia will rebound. I dont want to be gloomy, but SQ and CX may have some difficult times ahead.

What makes the situation even more difficult is that both SQ and CX fly only very large widebody aircraft (and SQ is supposed to phase the A310, its smallest type, very shortly).....both carriers cannot easily cut back on seats as they do not have smaller equipment. I realize that some flights are being cut and combined, but I am sure, during this difficult period, both airlines would prefer to send out a 738, A320 or a 757 with a 100 pax instead of flying a 777 or A330 with a similiar load.

Lets hope that the SARS mystery can be solved soon, most importantly for the people that are ill, but also for the airlines that are suffering very badly.
 
SInGAPORE_AIR
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RE: Singapore Airlines Load Factor Falls To 54%

Wed Apr 16, 2003 7:47 am

Revenue passenger kilometres fell 26% compared in he first week of April compared to the first week of April 2002.
Load factor fell to 54%.
Regions mentioned above most affected - in particular HKG, China and Vietnam.
Most capacity cuts to take place after 7 April 2003.

Singapore Airlines Limited sees a "very difficult year ahead".
Anyone can fly, only the best Soar.
 
777236ER
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RE: Singapore Airlines Load Factor Falls To 54%

Wed Apr 16, 2003 7:56 am

CX are amazingly liquid. How much cash do SQ have?
Your bone's got a little machine
 
9V-SPK
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RE: Singapore Airlines Load Factor Falls To 54%

Wed Apr 16, 2003 9:13 am

Government would support SQ if needed.

HKG load factors around 33%.

Best Regards
 
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clickhappy
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RE: Singapore Airlines Load Factor Falls To 54%

Wed Apr 16, 2003 9:16 am

who it is bad news for is Airbus and Boeing.
 
SQ772
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RE: Singapore Airlines Load Factor Falls To 54%

Wed Apr 16, 2003 12:15 pm

Yes things appear to be bad in SQ.

Latest news is that with immediate effect, LAS and ORD will be closed down permanently. All staff have been laid off, closing down for good.

Other stations to be closed down (permanently) are KHH, HIJ, MRU and BRU, although the public line is that these stations will only be temporarily suspended. Sad news, many of these stations have been in the network for ages.
There's always a better way to fly...
 
docpepz
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RE: Singapore Airlines Load Factor Falls To 54%

Wed Apr 16, 2003 1:44 pm

No surprise that LAS will be closed down permanently since it's basically a flight serving HKG, not SIN.

With no end in sight for SARS in HKG, it is unlikely they will wanna reinstate LAS anytime soon.

ORD was only served thrice a week, via a very long routing via the atlantic, making it unpopular with business travellers.

Anyway, SARS is only a temporary thing. Why would they wanna shut over ten stations down PERMANENTLY? doesn't make sense.
 
docpepz
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RE: Singapore Airlines Load Factor Falls To 54%

Wed Apr 16, 2003 1:48 pm

By the way I'm surprised that SQ can still fill more than half its seats!

Anyway the SARS situation in Singapore is now under control and I hope that in a month, we will be declared SARS free.
 
Ex_SQer
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RE: Singapore Airlines Load Factor Falls To 54%

Wed Apr 16, 2003 1:51 pm

I had heard about KHH, but not the rest. HIJ doesn't surprise me, though - there was talk about closing it right after SDJ was closed, and they nearly didn't reopen ORD after the post-9/11 suspensions.

It's such a pity to see the SQ network shrinking, but at least management is being rational about stemming the drain on cash. BRU has been in the network since the 1970s, but a lot of the passenger traffic went to Indonesia and I guess the route might not be sustainable after the troubles started in 1997. MRU has been around since the 80s.

At least BRu and ORD will continue to see cargo ops.

 
SQ772
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RE: Singapore Airlines Load Factor Falls To 54%

Wed Apr 16, 2003 3:13 pm

I don't think the decision to permanently shut down those 6 stations is due solely to SARS.

I am sure SQ had in mind to cut those routes much earlier. They haven't been exactly the money spinning stations in recent years, and there just isn't a better time to use the current world situation around to rationalise its network.

There's always a better way to fly...
 
Ex_SQer
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RE: Singapore Airlines Load Factor Falls To 54%

Wed Apr 16, 2003 3:32 pm

So, since the Asian Financial Crisis started in 1997, SQ has...

Opened: LAS and ORD (now both closing)
Closed: BKI, CNS, DRW, DUR, HGH, KCH, KHI, KTM, LHE, MFM, SDJ, SXF, VIE

SilkAir has (sorry most of these three-letter codes are too exotic for me to remember)...

Opened: Chengdu, Chittagong, Hyderabad, Kochi, Krabi, Macau, Palembang, Siem Reap, Trivandrum
Closed: Hat Yai, Kuantan, Pekanbaru.

Yes, I think the closure of these stations had been planned for some time now in the interest of rationalizing and removing those stations that didn't add any net benefit to the network.
 
9V-SVA
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RE: Singapore Airlines Load Factor Falls To 54%

Wed Apr 16, 2003 4:03 pm

SQ772, is it that bad? Ejazz, where are you? Oddly enough YVR, FCO, CPH etc are staying, as they make money as they are holiday destinations. YVR exists solely for ICN-YVR ops.

9V-SVA
9V-SVA | B772ER
 
Sabena 690
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RE: BRU

Wed Apr 16, 2003 4:12 pm

Where did you guys hear that BRU info?

SQ was for god sake looking to slightly increase the number of pax from BRU to SIN to give us our own B772!!!

It was even rumoured that after the temporarly suspension until may, we would get our B772!!

Is this confirmed already?  Crying

Regards
Frederic  Sad
 
9V-SPK
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RE: Singapore Airlines Load Factor Falls To 54%

Wed Apr 16, 2003 4:46 pm

Indeed SQ's network has been shrinking...the latest was that they would start flights to Prague around a month ago when the SARS thing didn't really exsist through people's head.

Actually LAS has not yet confirmed that will be closed permantly for sure. Instead it seems that SQ will re-install the flights before SQ1/2 but that's only for now (I will keep that updated), if the situation becomes worse god knows.

Let's jsut wait how things go and hope for the best.

Best Regards

 
SInGAPORE_AIR
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RE: Singapore Airlines Load Factor Falls To 54%

Wed Apr 16, 2003 4:47 pm

Singapore Airlines Limited shares fell 1.1% to S$8.75 after it warned of a hard year ahead and it also released some figures for the first week of April operations. RPK fell 26% compared to the week last year and load factor fell to 54%.

However, some analsysts saw reason for optimism from the numbers:

"SIA's preliminary data for April shows that its traffic is holding up far better than Cathay's," said a report by HSBC Securities, referring to Hong Kong's Cathay Pacific Airways Ltd.

More information at the Reuters / Yahoo website
Anyone can fly, only the best Soar.
 
SQ772
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RE: Singapore Airlines Load Factor Falls To 54%

Wed Apr 16, 2003 6:34 pm

Sabena690...

Info about the closure of the 6 stations has not been announced to the public yet. Heard it from someone in SQ...and unfortunately BRU was mentioned. Lets just hope this staff was misinformed. It's sad to see SQ's network shrinking so badly.
There's always a better way to fly...
 
Demoose
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RE: Singapore Airlines Load Factor Falls To 54%

Wed Apr 16, 2003 6:43 pm

Manchester Airport PLC have just announced some load factors of Far East flights for the first two weeks of April:

SQ SIN - MAN (now non-stop) = 84% Average Load factor using a 777-200ER
MH KUL - MAN = 82% Average load factor using a 747-400

Regards
Mark  Smile/happy/getting dizzy
Take a ride...fly across the sky
 
SQ772
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RE: Singapore Airlines Load Factor Falls To 54%

Wed Apr 16, 2003 6:50 pm

Actually LAS has not yet confirmed that will be closed permantly for sure.

SPK,

Actually, I was told that LAS and ORD are definitely closing for good (info coming from SQ's HQ). For once, I hope I got the wrong info.
There's always a better way to fly...
 
Sabena 690
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RE: Singapore Airlines Load Factor Falls To 54%

Wed Apr 16, 2003 7:26 pm

Mistakes are fast made, about 'temporarly' and 'full' closures of routes.

I hope it's a mistake like above, SQ772...

How accurate is the info you normally get? Because SQ is the last airline with scheduled B747 services on a regular base in BRU  Crying

BRU spotters really love SQ, it would be sad to see them go...

@Singapore_Air: Is it really necessary to put the 'limited' always after Singapore Airlines? Use SQ or Singapore Airlines like every normal freak does, but the limited starts to become boring....

Regards
Frederic
 
SInGAPORE_AIR
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RE: Singapore Airlines Load Factor Falls To 54%

Wed Apr 16, 2003 7:34 pm

In addition, it will be interesting to note:

September 2001: RPK fell 5.4% comapred to the year before and load factor fell to 73.1%.
October 2001: Dunno
November 2001: RPK fell 13.1% comapred to the year before and load factor fell to 66.9%.
December 2001: Dunno
Anyone can fly, only the best Soar.
 
SQ772
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RE: Singapore Airlines Load Factor Falls To 54%

Wed Apr 16, 2003 7:36 pm

Well, I cannot guarantee that my info is 100% accurate at this point.
But I am pretty confident that my source is reliable. I used to work for SQ, so I know the person who provided this info pretty well. I am almost sure he gave me the correct info because his department is usually one of the first to receive such news.
There's always a better way to fly...
 
Ryanair!!!
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RE: Singapore Airlines Load Factor Falls To 54%

Wed Apr 16, 2003 11:40 pm

For some reason, this all seems so surreal... SQ and the crisis. I guess this comes to show just how vulnerable the airline industry is to the happenings in the immediate environment.

@Singapore_Air: Is it really necessary to put the 'limited' always after Singapore Airlines? Use SQ or Singapore Airlines like every normal freak does, but the limited starts to become boring....

Sabena... after a while, it becomes a norm you just learn to live with it.
Welcome to my starry one world alliance, a team in the sky!
 
9V-SPK
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RE: Singapore Airlines Load Factor Falls To 54%

Thu Apr 17, 2003 9:16 am

SQ772, I hope you'd also be wrong! I'd just help you confirm more as my dad would definetely know more. But I guess they're just too busy these days figuring which SQ staff (HKG) they'd have to lay off if the SARS problem don't get dissolved.

Best Regards
 
rupertvander82
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RE: Singapore Airlines Load Factor Falls To 54%

Thu Apr 17, 2003 9:47 am

I wonder how much of these services will be reinstated after the SARS crisis. Sad to say, but SQ's destinations has become more of a bore in recent years, cutting more exotic destinations.

I know it is the best for the company's finance though.

I just hope they will start to fly to Pakistan, Nepal etc. after things are cleared. And also, I would love to see them fly to Berlin!
 
ANA777Master
Posts: 289
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RE: Singapore Airlines Load Factor Falls To 54%

Thu Apr 17, 2003 12:52 pm

I hereby dub thee, Singapore_Air, Minister of Doom, Discontent and Skepticism.

[Edited 2003-04-17 05:56:08]
 
SIA fan
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RE: Singapore Airlines Load Factor Falls To 54%

Thu Apr 17, 2003 1:41 pm

Oh no, I hope they don't really close ORD for good  Sad
SQ*G BD*S
 
LJ
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RE: Singapore Airlines Load Factor Falls To 54%

Fri Apr 18, 2003 1:06 am

SQ772, does this also mean permantly 3 flights less to Amsterdam as the ORD flight will go?
 
manni
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RE: Singapore Airlines Load Factor Falls To 54%

Fri Apr 18, 2003 2:39 am

I'm afraid I picked up the rumour today at BRU aswell. SIA will stop flying scheduled passenger services to BRU. In addition to this, AA will stop flying from ORD to BRU on tuesdays, so there will be no BRU to ORD flight on wednesday. Meanwhile Delta has changed it's BRU-JFK-SFO flight into a BRU-JFK-SLC flight, obviously it does not make much difference for BRU.
SUPPORT THE LEBANESE CIVILIANS
 
Ex_SQer
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RE: Singapore Airlines Load Factor Falls To 54%

Fri Apr 18, 2003 3:18 am

Lj,

I don't think anyone has an answer to that question at this point in time. SIA is in a crisis situation and a lot of plans can change at the last minute. My suspicion, however, is that if BRU is taken off the network, the current SIN-BRU-MAN flights will go via AMS once the dust settles from SARS and war. I think SIA will return MAN to a daily service for political reasons.
 
SQ772
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RE: Singapore Airlines Load Factor Falls To 54%

Sat Apr 19, 2003 3:12 pm

SIA Fan,

I know for a fact that ORD is closing for good, and SQ staff have already received notification that they had been laid off. BRU's closure...well, that's more or less confirmed.

Lj, not too sure if there will be 3 flight less to AMS, but as Ex_SQer says, things are still pretty fluid. Who knows, when times get better, they may consider re-opening all the stations that I had listed above.
There's always a better way to fly...
 
SIA fan
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RE: Singapore Airlines Load Factor Falls To 54%

Sat Apr 19, 2003 4:45 pm

SQ772, that's certainly bad news for me. After two years of enjoying the convenience of SQ 35/36, I guess it's back to EWR/JFK again. Do you know why SQ is unsuccessful in ORD? Not enough premium pax perhaps? I guess SQ's brand name is not so well known here in the Midwest. I know for a fact that during holiday seasons in Dec/Jan and the summer seasons, Y class is always packed with SE Asian students from all over the Midwest, but I guess they don't generate enough money. Do you think if SQ rerouted this flight (i.e. not via AMS), they could pull this route off?
SQ*G BD*S
 
Ex_SQer
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RE: Singapore Airlines Load Factor Falls To 54%

Sat Apr 19, 2003 6:13 pm

SIA started ORD in Aug 2001, and they suspended the service after 9/11.. so they've flown it less than two years. As for whether it could have worked through some other point... probably not. Out of Europe, IIRC SQ only has unused fifth freedom rights out of BRU and VIE, and neither of these stations is lucrative enough to support a profitable service. I don't think SQ had unused fifth freedoms out of Asia when they started the service in 2001. In any case, SQ prefers to operate to the east coast/midwest via Europe. The fact that the service operated 3x/week probably didn't help either - daily would have been better.

One factor that could have made this service more successful was if SQ and UA had co-operated. ORD is a UA hub, and it was a shame to waste this opportunity, but we all know that SQ and UA aren't co-operating much.
 
docpepz
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RE: Singapore Airlines Load Factor Falls To 54%

Sat Apr 19, 2003 11:06 pm

Ex SQer

why is would MAN be operated daily for "political reasons"? Care to elaborate?
 
donder10
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RE: Singapore Airlines Load Factor Falls To 54%

Sat Apr 19, 2003 11:35 pm

LHR slots
 
David_itl
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RE: Singapore Airlines Load Factor Falls To 54%

Sat Apr 19, 2003 11:35 pm


Hopefully "political reasons" won't be needed for daily MAN...."heavy demand reasons" may be better - a recent service left 92% full (full Y class, 7 J class).

David
 
docpepz
Posts: 1706
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RE: Singapore Airlines Load Factor Falls To 54%

Sun Apr 20, 2003 12:28 am

Full Y class 7 J class means low yields. SQ hates low yields!!! =)

How would a daily MAN service affect LHR slots though, Donder?
 
SQ772
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RE: Singapore Airlines Load Factor Falls To 54%

Sun Apr 20, 2003 12:40 am

Docpepz took the words right out of my mouth... fully agree, a full Y cabin does nothing to help an airline...pay for operating cost perhaps, but yield, not quite.

So, really...for premiere carriers such as SQ and CX, a full Y cabin (that is filled with pax holding heavily discounted tickets) is nothing to get excited about.
There's always a better way to fly...
 
docpepz
Posts: 1706
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RE: Singapore Airlines Load Factor Falls To 54%

Sun Apr 20, 2003 1:04 am

Hopefully SQ doesn't offload MAN to Silk Air! =)

I think the BRU flights were also leaving pretty full in Y right? just that there were hardly any passengers up front.
 
David_itl
Posts: 5946
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RE: Singapore Airlines Load Factor Falls To 54%

Sun Apr 20, 2003 1:18 am

Hint: look at the thread title! To me, an empty seat produces no revenue, so surely it's better to get some revenue rather than none? Or perhaps we should tell "tourists" that you're not allowed to fly long-haul as airlines don't like you?

Of course, the J class may well start to get utilised more now that non-stop services are on offer.

David
 
Ex_SQer
Posts: 1351
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RE: Singapore Airlines Load Factor Falls To 54%

Sun Apr 20, 2003 4:17 am

Singapore and the UK have had longstanding bilateral issues. It is a really long and complicated issue, so here is the basic gist. SIA has had to fight tooth and nail to obtain more traffic rights into the UK, and they also want transatlantic rights out of LHR. Each time S'pore and the UK meet to discuss the bilateral, the UK gives S'pore a little bit more, but not everything they want. SIA therefore uses up all available rights as soon as they are made available (and as soon as the slots are available) in order to tell the UK "hey we have used up all our rights, we carry huge amounts of pax and cargo, let's negotiate again". Basically it is a tactic to get the UK authorities to talk and gain more rights, with the ultimate aim of transatlantic rights.

As for MAN, the traffic is mostly low-yielding tourist and VFR traffic. The flights are not terribly profitable. I am, however, surprised by the 92% pax load factor in the middle of April!

By the way, the UK has granted 3rd/4th freedom rights to fly on to the US, but that isn't sustainable because SIA can't pick up passengers between the US and UK. BA, by contrast, has huge unutilized rights out of SIN, including the right to base up to 20 747-size aircraft in SIN.

As far as the bilateral goes, Singapore is in a weak position because their negotiators gave away too much too early, and they have little left to offer that could be of use to BA.

Like I said this is a long and complicated issue and I have only just scratched the surface of it.
 
David_itl
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RE: Singapore Airlines Load Factor Falls To 54%

Sun Apr 20, 2003 6:17 am


I believe the KUL-MAN service is like the SQ SIN-MAN service with plenty of Y class passengers,some J class. (It's known as northerners being tight with their money  Big grin ).

Didn't SQ want MAN services back in 1984 (I missed out seeing the demonstration flight on 14th March 1984), with full page advertisements taken out in the broadsheets (can't remember seeing them!)? The only thing that I can remember is that the deal the UK government/BA wanted was that for SQ would have to reduce SIN-LHR services by an equivalent amount.

David
 
docpepz
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RE: Singapore Airlines Load Factor Falls To 54%

Sun Apr 20, 2003 12:39 pm

Today, BA operates 4 744 flights a day from Singapore (2 to LHR, 1 to MEL and 1 to SYD) They used to do LHR-SIN-PER and LHR-SIN-BNE and if I remember correctly, they actually wanted to add on LHR-SIN-MEL and LHR-SIN-SYD on top of the PER and BNE flights but the Singapore authorities didn't let that happen unless SQ got fifth freedom transatlantic rights.

There are 4 flights a day from Singapore to the UK too, operated by SIA. 3 to LHR and one to MAN.

Isn't this a case of Singapore needs UK rights more than UK needs Singapore rights? On the way to Australia, is Singapore the only place/most profitable city for BA to stop?

Am I right in saying that though BA has 14 flighs a week ex SIN to Australia, SIA will stand to gain A LOT more from operating 14 transatlantic flights from LHR to JFK/ORD? (I reckon LHR-JFK is more profitable than SIN-SYD??)

"As far as the bilateral goes, Singapore is in a weak position because their negotiators gave away too much too early, and they have little left to offer that could be of use to BA."

Erm, is this due to the fact that about 37 years ago, Singapore was a British colony and BA's predecessors already had nearly all the access they wanted to fly pax from the UK to SIN and beyond?
 
Ex_SQer
Posts: 1351
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RE: Singapore Airlines Load Factor Falls To 54%

Sun Apr 20, 2003 6:18 pm

David: Actually, what SQ wanted in 1984 was double daily to LHR and flights to MAN (a distant second priority). The UK gave them the rights for MAN after some lobbying, but they had to fight for a few more years before the second LHR daily flight was allowed. IIRC these additional LHR flights only started in 1989, and they were gradually phased in.

Docpepz: Yes, I guess SQ has more to gain from transatlantic flights ex-LHR than BA has to gain from an equal number of flights to Australia.... but countries generally negotiate fifth freedoms in terms of flight frequency or capacity/number of seats. I personally don't recall any instances where the profitability of the routes is factored into the equation.

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