Cheong Choong "Starting new airline viable"
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Cheong Choong "Starting new airline viable"
Fri "Sydney Morning Herald"
Singapore toys with prospect of third airline
By Darren Goodsir, Transport Editor
October 4 2002
Singapore Airlines has officially rated as "viable" its proposal to establish a third Australian domestic carrier.
In his first public comments on the Asian carrier's plans since the demise of Ansett, the airline's chief executive, Cheong Choong Kong, declined to reveal a timetable for launching an assault on the congested domestic market, dominated by Qantas and Virgin Blue.
But he hinted the market conditions were ripe for a start-up airline to take a fresh tilt at domestic travellers.
Commenting on his team's recent evaluation of Australian market conditions - and on introducing limited full-service flights to major cities - Dr Cheong said: "The information we gathered showed that starting a new airline is a viable option.
"Whether we exercise that option, and do it, is another thing.
"It depends on various conditions - and whether those conditions will come about remains to be seen.
"We have always been interested in having a permanent presence in Australia ... because the Australian market is extremely important to us.
"And by presence we mean more than just flying more frequencies to the capital cities. I think the point to note is that the game ain't over yet. The fat lady hasn't sung yet."
Last June, Dr Cheong told a meeting of the Star Alliance in Shanghai that the disappearance of Ansett had created a vacuum in international coverage that needed to be remedied.
Since then, Singapore has enjoyed good business on flights in and out of Australia - with loads on many routes better than this time last year.
It has also reached an agreement with Qantas to fly its passengers within Australia.
For the past six months, the airline's Australian-based consultant, Peter Stainlay - a former Qantas executive who helped develop the final route strategy for Ansett Mark II - has been determining if the carrier's good international business can help support the domestic offshoot.
The suggested entry of Singapore Airlines has coincided with Qantas's plans to take a 25 per cent stake in Air New Zealand. It has also come amid speculation Singapore itself may be tempted to buy out the diluted British Airways shareholding in Qantas.
"I can only say that in this funny business, anything is possible - and I wouldn't rule anything out," Dr Cheong said.
"I never comment on talks, or the absence of talks, or who they are held with."
Dr Cheong said exploiting the congested domestic market - including the Sydney-Melbourne-Brisbane crush where securing a seat at short notice often meant a large fare - was an issue which "featured prominently in our study".
"But we won't commit ourselves to a schedule," he said.
"You won't be hearing from us on this subject next week, or maybe even next month - but beyond that, I really honestly can't say."
Dr Cheong said the airline was examining investment opportunities "not confined to just Australia.
"There are developments elsewhere and whether and when we invest in that third Australian airline will depend, among other things, on how developments in other places progress."
==========================================
Fri "The Australian"
Third airline 'viable'
By Steve Creedy
October 04, 2002
SINGAPORE Airlines executives believe a third domestic carrier is a viable option, confirming yesterday the battle for Australia's skies is far from over.
Singapore chief executive Cheong Choong Kong said the airline was keeping its options open, but warned those options were not confined to Australia.
He would not reveal the alternatives, but said the airline's healthy balance sheet did not mean its resources were unlimited.
"For us there are developments elsewhere – and whether or when we invest in that Australian airline will depend, among other things, on how developments in other places progress," he said in Sydney.
Dr Cheong said high load factors and difficulties getting seats on some routes had featured prominently in the airline's study of the Australian market.
Australia is one of Singapore's biggest overseas markets and the airline has a long-term interest in expanding here.
Its evaluation here included assigning a local executive and a small team from Singapore to look at issues such as domestic airport access.
"The information that we gathered certainly showed that starting a new airline is a viable option," Dr Cheong said.
"Whether we exercise that option and when we do is another thing.
"We're not going to make a decision in a hurry.
"I think the thing to note here is the game ain't over yet, the fat lady hasn't sung."
He did not rule out Singapore Airlines taking a position in Qantas if British Airways sold its stake.
But Dr Cheong said the idea of a wider Australasian grouping of airlines, raised by Qantas chief Geoff Dixon, was "just a concept at present, and very much Geoff Dixon's concept".
Singapore seems to be doing well in the post-Ansett environment despite the collapse of its local partner. Dr Cheong said load factors into and out of Australia were "as good as, if not better than, before".
However, the airline had been affected by the loss of the Ansett frequent-flyer scheme.
It was working hard to build up its Krisflyer frequent flyer scheme and had reached a commercial agreement with Qantas.
"So while we are feeling, to some degree, the loss of Ansett, it hasn't been very severe," he said.
He declined to speculate on what went wrong with Ansett, saying the issue was still too sensitive and shrouded in emotion to comment.
"We are very, very sad that Ansett has gone under and thousands of people have lost their jobs but apart from that, as I say, the game ain't over."
The Singapore boss was also unperturbed by potential competition from Qantas low-cost offshoot Australian Airlines, due to launch this month.
Subsidiary SilkAir had lower costs than mainline airlines and the costs could be brought down further if need be, he said.
Singapore toys with prospect of third airline
By Darren Goodsir, Transport Editor
October 4 2002
Singapore Airlines has officially rated as "viable" its proposal to establish a third Australian domestic carrier.
In his first public comments on the Asian carrier's plans since the demise of Ansett, the airline's chief executive, Cheong Choong Kong, declined to reveal a timetable for launching an assault on the congested domestic market, dominated by Qantas and Virgin Blue.
But he hinted the market conditions were ripe for a start-up airline to take a fresh tilt at domestic travellers.
Commenting on his team's recent evaluation of Australian market conditions - and on introducing limited full-service flights to major cities - Dr Cheong said: "The information we gathered showed that starting a new airline is a viable option.
"Whether we exercise that option, and do it, is another thing.
"It depends on various conditions - and whether those conditions will come about remains to be seen.
"We have always been interested in having a permanent presence in Australia ... because the Australian market is extremely important to us.
"And by presence we mean more than just flying more frequencies to the capital cities. I think the point to note is that the game ain't over yet. The fat lady hasn't sung yet."
Last June, Dr Cheong told a meeting of the Star Alliance in Shanghai that the disappearance of Ansett had created a vacuum in international coverage that needed to be remedied.
Since then, Singapore has enjoyed good business on flights in and out of Australia - with loads on many routes better than this time last year.
It has also reached an agreement with Qantas to fly its passengers within Australia.
For the past six months, the airline's Australian-based consultant, Peter Stainlay - a former Qantas executive who helped develop the final route strategy for Ansett Mark II - has been determining if the carrier's good international business can help support the domestic offshoot.
The suggested entry of Singapore Airlines has coincided with Qantas's plans to take a 25 per cent stake in Air New Zealand. It has also come amid speculation Singapore itself may be tempted to buy out the diluted British Airways shareholding in Qantas.
"I can only say that in this funny business, anything is possible - and I wouldn't rule anything out," Dr Cheong said.
"I never comment on talks, or the absence of talks, or who they are held with."
Dr Cheong said exploiting the congested domestic market - including the Sydney-Melbourne-Brisbane crush where securing a seat at short notice often meant a large fare - was an issue which "featured prominently in our study".
"But we won't commit ourselves to a schedule," he said.
"You won't be hearing from us on this subject next week, or maybe even next month - but beyond that, I really honestly can't say."
Dr Cheong said the airline was examining investment opportunities "not confined to just Australia.
"There are developments elsewhere and whether and when we invest in that third Australian airline will depend, among other things, on how developments in other places progress."
==========================================
Fri "The Australian"
Third airline 'viable'
By Steve Creedy
October 04, 2002
SINGAPORE Airlines executives believe a third domestic carrier is a viable option, confirming yesterday the battle for Australia's skies is far from over.
Singapore chief executive Cheong Choong Kong said the airline was keeping its options open, but warned those options were not confined to Australia.
He would not reveal the alternatives, but said the airline's healthy balance sheet did not mean its resources were unlimited.
"For us there are developments elsewhere – and whether or when we invest in that Australian airline will depend, among other things, on how developments in other places progress," he said in Sydney.
Dr Cheong said high load factors and difficulties getting seats on some routes had featured prominently in the airline's study of the Australian market.
Australia is one of Singapore's biggest overseas markets and the airline has a long-term interest in expanding here.
Its evaluation here included assigning a local executive and a small team from Singapore to look at issues such as domestic airport access.
"The information that we gathered certainly showed that starting a new airline is a viable option," Dr Cheong said.
"Whether we exercise that option and when we do is another thing.
"We're not going to make a decision in a hurry.
"I think the thing to note here is the game ain't over yet, the fat lady hasn't sung."
He did not rule out Singapore Airlines taking a position in Qantas if British Airways sold its stake.
But Dr Cheong said the idea of a wider Australasian grouping of airlines, raised by Qantas chief Geoff Dixon, was "just a concept at present, and very much Geoff Dixon's concept".
Singapore seems to be doing well in the post-Ansett environment despite the collapse of its local partner. Dr Cheong said load factors into and out of Australia were "as good as, if not better than, before".
However, the airline had been affected by the loss of the Ansett frequent-flyer scheme.
It was working hard to build up its Krisflyer frequent flyer scheme and had reached a commercial agreement with Qantas.
"So while we are feeling, to some degree, the loss of Ansett, it hasn't been very severe," he said.
He declined to speculate on what went wrong with Ansett, saying the issue was still too sensitive and shrouded in emotion to comment.
"We are very, very sad that Ansett has gone under and thousands of people have lost their jobs but apart from that, as I say, the game ain't over."
The Singapore boss was also unperturbed by potential competition from Qantas low-cost offshoot Australian Airlines, due to launch this month.
Subsidiary SilkAir had lower costs than mainline airlines and the costs could be brought down further if need be, he said.
Last edited by Wirraway; 3rd Oct 2002 at 16:42.
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Cheong Choong Kong ...
Cheong, Choong, Kong ...
Cheong ... Choong ... Kong ...
I don't know anything about the man ... and I don't live in Australia ... but I sure like saying his name.
Say it with me, won't you?
Cheong Choong Kong ...
Minh
(South of heaven, west of hell)
Cheong, Choong, Kong ...
Cheong ... Choong ... Kong ...
I don't know anything about the man ... and I don't live in Australia ... but I sure like saying his name.
Say it with me, won't you?
Cheong Choong Kong ...
Minh
(South of heaven, west of hell)
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I still think that SQ are tightening the screws on QF to give them a better deal with regards to the on-carriage. They threaten to start their own domestic airline and QF relent some what to the price SQ want
Maybe, Maybe NOT?
Maybe, Maybe NOT?
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BULLISH ON AUSTRALIA
This is from the Strait Times- Singapore
The first part of the Article was very similar to that of the article from the Australian.
Dr Cheong says SIA is keen on having a permanent presence ''because the Australian market is extremely important to us. And by presence, we mean more than just flying more frequencies to the capital cities''.
He declines to say if SIA might invest in Qantas if rival British Airways withdraws from the Australian carrier.
''I can only say that in this funny business, anything is possible and I wouldn't rule out anything,'' he says.
The first part of the Article was very similar to that of the article from the Australian.
Dr Cheong says SIA is keen on having a permanent presence ''because the Australian market is extremely important to us. And by presence, we mean more than just flying more frequencies to the capital cities''.
He declines to say if SIA might invest in Qantas if rival British Airways withdraws from the Australian carrier.
''I can only say that in this funny business, anything is possible and I wouldn't rule out anything,'' he says.
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The good Doctor Cheong, master of foreign investment for Singapore Airlines.
Confucius say: "Man with moving hands in pocket not necessarily playing with car keys."
Confucius say: "Man with moving hands in pocket not necessarily playing with car keys."
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I think it would be wishful thinking for SIA / SilkAir to start any airline here. Choong has proved himself inept at financial management (Virgin Atlantic and Air NZ / Ansett). SilkAir especially, still has an image problem after they 737 dived into the river in Indonesia. The inquiry that followed was carefully controlled with only selective information allowed, hence the controversy will not go away, in Asia.
One incident here in Oz would have this forum and the local media, alight.
Regardless, they are ruthless taskmasters. Any thoughts of a reincarnation of the unrealistic conditions that existed in Ansett is just day dreaming.
One incident here in Oz would have this forum and the local media, alight.
Regardless, they are ruthless taskmasters. Any thoughts of a reincarnation of the unrealistic conditions that existed in Ansett is just day dreaming.
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"Market is ripe for a third party" etc etc
"A third airline is sustainable" etc etc.
Well the Dr has had over twelve months to evaluate, ponder, plan, organise, strategise, theorise and whatever.
The fact that they have not done anything to date after having every opportunity under the sun is testimony to the good Dr's lack of true commitment not to mention his ability to procrastinate.
If he was going to do it then it would have been done.
Why doesnt this very businessman with an extremely average track record over the last 3 years stop playing games (like he did in all of his other loss-making ventures) and do something of substance?
Oh thats right - he cant afford to f*&k up this time around as his neck is in a noose and the other Singair board members are waiting for him to just stuff up a fraction.
"A third airline is sustainable" etc etc.
Well the Dr has had over twelve months to evaluate, ponder, plan, organise, strategise, theorise and whatever.
The fact that they have not done anything to date after having every opportunity under the sun is testimony to the good Dr's lack of true commitment not to mention his ability to procrastinate.
If he was going to do it then it would have been done.
Why doesnt this very businessman with an extremely average track record over the last 3 years stop playing games (like he did in all of his other loss-making ventures) and do something of substance?
Oh thats right - he cant afford to f*&k up this time around as his neck is in a noose and the other Singair board members are waiting for him to just stuff up a fraction.
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My take on the situation is that Singapore are interested in the Australian domestic market but probably not as a player in its own right. Qantas has a strong grip on the market and Virgin smartly has positioned itself below Qantas with a differentiated product. For all the talk about how Singapore could show Qantas a thing or two about real service, the domestic market pie is only so big and the best Singapore could hope for is a small slice. As small full service carrier priced at or just below Qantas, their position would bring pressure from the other two players from above and below. Not the best place to be and far too risky IMHO.
So, if they are interested in getting their foot in the door, would not the best plan be to talk it up and give everyone the impression that you intend to enter the market, thus pushing down the market value of the two other players (take a look at Qantas's share price currently / Virgin intend to float at some stage). Do this long enough and I predict that Singapore will push for a stake in either Qantas (through BA's 25%) or Virgin Blue (just as in the Virgin Atlantic case). A far easier, less risky and much less expensive way of entering the Australian domestic market.
Only time will tell!
AA
So, if they are interested in getting their foot in the door, would not the best plan be to talk it up and give everyone the impression that you intend to enter the market, thus pushing down the market value of the two other players (take a look at Qantas's share price currently / Virgin intend to float at some stage). Do this long enough and I predict that Singapore will push for a stake in either Qantas (through BA's 25%) or Virgin Blue (just as in the Virgin Atlantic case). A far easier, less risky and much less expensive way of entering the Australian domestic market.
Only time will tell!
AA
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Can someone clarify for me .......
When a company like Ansett ceases to operate is it a year after the collapse of the company before you can re-use the name (or purchase) and not be liable for the previous debt?
If this is the case then one would assume that if SIA enters the Aussie market and was to use either part of the Ansett Branding or the whole kit and caboodle then they would need to wait until April. Which is when a start up has been rumoured. The FF survey they completed included a question about the re-use of the Ansett name.
I am not suggesting they will use the Ansett name but is this the case in a business collapse?
When a company like Ansett ceases to operate is it a year after the collapse of the company before you can re-use the name (or purchase) and not be liable for the previous debt?
If this is the case then one would assume that if SIA enters the Aussie market and was to use either part of the Ansett Branding or the whole kit and caboodle then they would need to wait until April. Which is when a start up has been rumoured. The FF survey they completed included a question about the re-use of the Ansett name.
I am not suggesting they will use the Ansett name but is this the case in a business collapse?
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skinny dog,
Not sure where your info comes from but its a bit of an untruth to say that MI has an image problem.
1013.
Fatal mistake to think that because SQ have not yet moved, they never will. Putting together plans for SQ and VB to jump into bed does not happen overnight.
Not sure where your info comes from but its a bit of an untruth to say that MI has an image problem.
1013.
Fatal mistake to think that because SQ have not yet moved, they never will. Putting together plans for SQ and VB to jump into bed does not happen overnight.
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AAP
Analysts doubts Singapore Airlines move
Analysts doubt Singapore Airlines will set up shop as Australia's third domestic carrier, saying it is more likely the Asian carrier will try and cultivate an alliance with Qantas Airways Ltd.
Singapore Airlines chief executive officer Dr Cheong Choong Kong today said the Australian airline market was a viable option for Singapore.
"It is viable, it can be viable, but as I said, it depends on so many conditions and one has to see whether those conditions are fulfilled," Dr Cheong said.
Rothschild Australia Asset Management transport analyst Troy Angus said Singapore Airlines might be trying to get Qantas or Virgin to the negotiating table.
"It appears that he is attempting to get either Virgin or Qantas to the table to do a deal with him," he said.
"In terms of the Asia-Pacific region, a Qantas-Singapore strategic alliance would be a very competitive entity in this region, particularly if it came on the back of Qantas doing a deal with Air New Zealand."
Qantas is currently in talks with Air New Zealand about a potential stake in the New Zealand carrier.
Qantas stocks, which have tumbled to year lows on war fears in recent weeks, ended only one cent weaker at $3.50 following the fresh Singapore speculation today.
"The market doesn't believe ... that Singapore will enter the domestic market, or it is already discounted in the share price.
"The truth lies somewhere in between. I suspect that the market may imply perhaps a 10 per cent probability of Singapore entering the domestic market, but not more than that.
"It would cost a ridiculous amount of money and they would be competing head on with the likes of Qantas in a domestic market which is not large enough to support three carriers."
Virgin Blue head of commercial David Huttner dismissed the fresh speculation as "nothing new".
"I can say emphatically there are no discussions between Virgin Blue and Singapore Airlines," Mr Huttner said.
©AAP 2002
Analysts doubts Singapore Airlines move
Analysts doubt Singapore Airlines will set up shop as Australia's third domestic carrier, saying it is more likely the Asian carrier will try and cultivate an alliance with Qantas Airways Ltd.
Singapore Airlines chief executive officer Dr Cheong Choong Kong today said the Australian airline market was a viable option for Singapore.
"It is viable, it can be viable, but as I said, it depends on so many conditions and one has to see whether those conditions are fulfilled," Dr Cheong said.
Rothschild Australia Asset Management transport analyst Troy Angus said Singapore Airlines might be trying to get Qantas or Virgin to the negotiating table.
"It appears that he is attempting to get either Virgin or Qantas to the table to do a deal with him," he said.
"In terms of the Asia-Pacific region, a Qantas-Singapore strategic alliance would be a very competitive entity in this region, particularly if it came on the back of Qantas doing a deal with Air New Zealand."
Qantas is currently in talks with Air New Zealand about a potential stake in the New Zealand carrier.
Qantas stocks, which have tumbled to year lows on war fears in recent weeks, ended only one cent weaker at $3.50 following the fresh Singapore speculation today.
"The market doesn't believe ... that Singapore will enter the domestic market, or it is already discounted in the share price.
"The truth lies somewhere in between. I suspect that the market may imply perhaps a 10 per cent probability of Singapore entering the domestic market, but not more than that.
"It would cost a ridiculous amount of money and they would be competing head on with the likes of Qantas in a domestic market which is not large enough to support three carriers."
Virgin Blue head of commercial David Huttner dismissed the fresh speculation as "nothing new".
"I can say emphatically there are no discussions between Virgin Blue and Singapore Airlines," Mr Huttner said.
©AAP 2002
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The gravy stroke™
ching choong chong
ding doong dong
confucious say man who sreep outside and dleam of woman wake up with heavy dew on stomach.
confucious say man who stick dick in cookie jar is f***ing clackers
haaaawwww...... me so HUNG glee...
ding doong dong
confucious say man who sreep outside and dleam of woman wake up with heavy dew on stomach.
confucious say man who stick dick in cookie jar is f***ing clackers
haaaawwww...... me so HUNG glee...
......yeah right. Never ceases to amaze me the calibre of morons PPUNE attracts. Are you proud of this post gravy?
Anyhow, back to the sensible posts.................
Anyhow, back to the sensible posts.................