Singapore Airlines extends Aussie cutbacks
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Singapore Airlines extends Aussie cutbacks
Asia Pulse
Thursday May 15, 12:20 PM
Singapore Airlines to Maintain Less Flights to Australia to June
SYDNEY, May 15 Asia Pulse - Singapore Airlines says flight suspensions to Australia will continue another month because of persistent weak demand brought on by SARS.
The airline said the full implementation of the cutbacks in capacity of 28.9 per cent, as previously announced, had been completed in the period to May with those cutbacks flowing through to the end of June.
However, no further cutbacks were planned, the airline added.
Singapore Airlines said previously-announced reductions would be continued into June because of the impact on passenger numbers from the severe acute respiratory syndrome outbreak.
In effect, Singapore Airlines would reduce the number of flights to and from Australia by around 26 per cent during the May-June period.
The airline said Sydney would continue at two flights daily, rather than three, until June 28.
It said Brisbane would operate at 12 flights per week until the end of June, and Perth would operate at 11 flights per week until the end of June.
Melbourne would operate 14 flights per week, and Adelaide services remain unchanged at 3 per week.
ASIA PULSE
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Pic: Singapore Airlines 777-200 departed rwy 01 BNE
Photo: Wirraway
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Thursday May 15, 12:20 PM
Singapore Airlines to Maintain Less Flights to Australia to June
SYDNEY, May 15 Asia Pulse - Singapore Airlines says flight suspensions to Australia will continue another month because of persistent weak demand brought on by SARS.
The airline said the full implementation of the cutbacks in capacity of 28.9 per cent, as previously announced, had been completed in the period to May with those cutbacks flowing through to the end of June.
However, no further cutbacks were planned, the airline added.
Singapore Airlines said previously-announced reductions would be continued into June because of the impact on passenger numbers from the severe acute respiratory syndrome outbreak.
In effect, Singapore Airlines would reduce the number of flights to and from Australia by around 26 per cent during the May-June period.
The airline said Sydney would continue at two flights daily, rather than three, until June 28.
It said Brisbane would operate at 12 flights per week until the end of June, and Perth would operate at 11 flights per week until the end of June.
Melbourne would operate 14 flights per week, and Adelaide services remain unchanged at 3 per week.
ASIA PULSE
============================================
Pic: Singapore Airlines 777-200 departed rwy 01 BNE
Photo: Wirraway
============================================
Nunc est bibendum
Was in Singapore late last week and could not believe the number of parked SQ aircraft. It seemed like they didn't have anything NOT at the terminal. Wish I'd had my camera on me. Would've made the AN tails all in a line when they fell over look like a small thing. (It wasn't a small thing, just saying that SQ has parked LOTS of aircraft!).
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Yes you can count about 45 tails some mornings.
Depending how you count as 3 340s are grounded, 12 310s to follow at 31 May the actual can be visually daunting.
Sad part is that the Pilots are also on the ground, many running out of 28 day currency, me one more flight scheduled this month and that's IT.
Funny though as one door slams, 3 more have opened.
One with the Game, new balls please, your serve.
Depending how you count as 3 340s are grounded, 12 310s to follow at 31 May the actual can be visually daunting.
Sad part is that the Pilots are also on the ground, many running out of 28 day currency, me one more flight scheduled this month and that's IT.
Funny though as one door slams, 3 more have opened.
One with the Game, new balls please, your serve.
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Dow Jones Business News
Singapore Air FY Net Likely +74% On Writebacks -Analysts
Monday May 19, 1:45 am ET
SINGAPORE (Dow Jones)--Singapore Airlines Ltd. is expected to report a 74% rise in net profit for the year ended March 31, thanks to tax writebacks and as air traffic rebounded from the shock of the Sept. 11, 2001, terrorist attacks on the U.S.
The airline - among the most profitable in the world - is due to report earnings after 0905 GMT Wednesday. While the headline figure may look better, analysts say they are keen to hear how the SARS outbreak will affect overall profitability in the current financial year.
The airline has cut flights by one-third, fired staff, and postponed fleet replacement and expansion as the SARS outbreak in March led to a steep fall in traffic.
Kim Eng Ong Asia Research's Seah Hiang Hong says, "What happened last year isn't important. People are concerned about (lower) traffic in current conditions."
SIA is expected to report a net profit of S$1.1 billion (US$1=S$1.7222) based on consensus forecast by six analysts polled by Dow Jones Newswires, up from S$ 632 million in the previous corresponding period. Individual forecasts ranged from S$977 million to S$1.2 billion.
In the year ended March 31, SIA's net profit will also be somewhat misleading due to the impact of one-off tax writebacks as a result of a change in the corporate tax rate from 24.5% to 22%.
Stripping away the expected tax input to SIA's earnings, recurring net profit is expected to range from S$880 million to S$930 million.
"Cargo and passenger traffic was strong as air travel rebounded from the aftershock of Sept. 11 (2001)," Ann Lim, analyst at Daiwa Institute of Research says, adding these factors will be earnings drivers apart from the tax rate change.
For the year to March, SIA's passenger traffic rose 6% while cargo traffic rose 15%, according to analysts' calculations.
For the previous period when its second half felt the full impact of the Sept. 11 terrorist attacks on the U.S., passenger and cargo traffic had fallen 2.8 and 1.9 percentage points respectively.
The airline worked aggressively to control costs by reducing total expenditures by 1.6% to S$8.46 billion, cutting flights on unprofitable routes, freezing salaries and deferring fleet expansion.
Those measures have started to sound familiar as the airline battles the impact of severe acute respiratory syndrome on demand for air travel.
Last week, the airline said it moved fewer passengers and cargo in April than a year ago - its fourth consecutive month of decline.
Its overall load factor - a measure of how efficiently an airline uses seats and cargo space - fell a morale-sapping 13.6 percentage points to 58.7%. It was its lowest level in at least 13 years.
SIA simultaneously announced more flight cuts as it battled weak demand for air travel, bringing its total capacity reductions to 31.5% with 358 weekly flights suspended since the outbreak of SARS in late March.
Measures announced prior to last week's flight cuts - such as asking cabin crew to take one week of unpaid leave every two months to prevent the airline from having to cut full-time jobs for the first time in more than 20 years - will result in estimated savings of S$14 million for the current fiscal year, which ends March 2004.
The airline had also fired 206 non-payroll staff, frozen staff salaries and scaled back fleet replacements.
Analysts await further cost-cutting measures as SIA attempts to minimize the toll of SARS on its earnings for the current year.
-By Abdul Hadhi, Dow Jones Newswires;
Singapore Air FY Net Likely +74% On Writebacks -Analysts
Monday May 19, 1:45 am ET
SINGAPORE (Dow Jones)--Singapore Airlines Ltd. is expected to report a 74% rise in net profit for the year ended March 31, thanks to tax writebacks and as air traffic rebounded from the shock of the Sept. 11, 2001, terrorist attacks on the U.S.
The airline - among the most profitable in the world - is due to report earnings after 0905 GMT Wednesday. While the headline figure may look better, analysts say they are keen to hear how the SARS outbreak will affect overall profitability in the current financial year.
The airline has cut flights by one-third, fired staff, and postponed fleet replacement and expansion as the SARS outbreak in March led to a steep fall in traffic.
Kim Eng Ong Asia Research's Seah Hiang Hong says, "What happened last year isn't important. People are concerned about (lower) traffic in current conditions."
SIA is expected to report a net profit of S$1.1 billion (US$1=S$1.7222) based on consensus forecast by six analysts polled by Dow Jones Newswires, up from S$ 632 million in the previous corresponding period. Individual forecasts ranged from S$977 million to S$1.2 billion.
In the year ended March 31, SIA's net profit will also be somewhat misleading due to the impact of one-off tax writebacks as a result of a change in the corporate tax rate from 24.5% to 22%.
Stripping away the expected tax input to SIA's earnings, recurring net profit is expected to range from S$880 million to S$930 million.
"Cargo and passenger traffic was strong as air travel rebounded from the aftershock of Sept. 11 (2001)," Ann Lim, analyst at Daiwa Institute of Research says, adding these factors will be earnings drivers apart from the tax rate change.
For the year to March, SIA's passenger traffic rose 6% while cargo traffic rose 15%, according to analysts' calculations.
For the previous period when its second half felt the full impact of the Sept. 11 terrorist attacks on the U.S., passenger and cargo traffic had fallen 2.8 and 1.9 percentage points respectively.
The airline worked aggressively to control costs by reducing total expenditures by 1.6% to S$8.46 billion, cutting flights on unprofitable routes, freezing salaries and deferring fleet expansion.
Those measures have started to sound familiar as the airline battles the impact of severe acute respiratory syndrome on demand for air travel.
Last week, the airline said it moved fewer passengers and cargo in April than a year ago - its fourth consecutive month of decline.
Its overall load factor - a measure of how efficiently an airline uses seats and cargo space - fell a morale-sapping 13.6 percentage points to 58.7%. It was its lowest level in at least 13 years.
SIA simultaneously announced more flight cuts as it battled weak demand for air travel, bringing its total capacity reductions to 31.5% with 358 weekly flights suspended since the outbreak of SARS in late March.
Measures announced prior to last week's flight cuts - such as asking cabin crew to take one week of unpaid leave every two months to prevent the airline from having to cut full-time jobs for the first time in more than 20 years - will result in estimated savings of S$14 million for the current fiscal year, which ends March 2004.
The airline had also fired 206 non-payroll staff, frozen staff salaries and scaled back fleet replacements.
Analysts await further cost-cutting measures as SIA attempts to minimize the toll of SARS on its earnings for the current year.
-By Abdul Hadhi, Dow Jones Newswires;
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Wednesday May 21, 05:23 PM
SIA pilots reject wage cuts unless overseas pilots are axed
SINGAPORE (AFP) - Singapore Airlines (SIA) pilots have rejected a management proposal for sharp wage cuts and unpaid leave amid an aviation industry crisis sparked by the SARS health scare, a spokesman for the pilots' union said.
The union said Wednesday it wants SIA management to first let go of about 120 overseas pilots seconded to the airline before they can discuss measures to reduce costs, Air Line Pilots Association-Singapore spokesman Captain Frank John said.
He said the union voted overwhelmingly at a meeting late Tuesday to ask management to first address the issue of overseas pilots seconded to SIA before discussions are held on proposed cost-cutting measures.
Among the proposals was for pilots to take 10-12 days of unpaid leave every two months and wage cuts of about 22.5 percent.
"Last night there was a resolution saying that the company should first address the issue of surplus pilots ... Singapore-based pilots will then accept whatever measures are necessary thereafter," John told AFP.
"We are not saying it's a complete 'no' to any cost-cutting measures but we just feel that this should be the first step before any other meausures are considered."
About 120 pilots from a wholly-owned subsidiary, SIA Mauritius, have been seconded to the airline.
The union said that with the airline cutting more than 30 percent of its total capacity due to the travel slump sparked by Severe Acute Respiratory Syndrome (SARS), the first to axed should be these overseas pilots.
"Our view is that since there is no longer a requirement (for them) they should be removed from the equation. Then we can talk about the other measures thereafter," John said.
He said the union will hold another round of talks with the management within the week to present their position.
SIA, one of Asia's most profitable carriers before the SARS epidemic struck in March, announced last week further reductions in capacity, bringing the total to 31.5 percent.
Overall load factor fell to 58.70 percent in April from 72.30 percent a year ago, with passenger traffic diving 50.4 percent.
Richard Stirland, director general of the Association of Asia Pacific Airlines, has said the region's carriers are "bleeding cash on a daily basis" and warned recovery will be months away even if the epidemic is contained now.
SIA last month asked its 6,600 cabin crew to take unpaid leave and has let go more than 206 trainees as part of cost-cutting measures.
"We agreed that the outlook is bleak. The current loads and the short-term outlook is grey," John said.
"However, we are hopeful that once Singapore is (taken) off the WHO (World Health Organization) list of SARS-affected areas, we will then see a pick-up in the business," he said.
Singapore, which has 28 SARS deaths out of 206 cases, is one of the worst hit by the epidemic.
SIA pilots reject wage cuts unless overseas pilots are axed
SINGAPORE (AFP) - Singapore Airlines (SIA) pilots have rejected a management proposal for sharp wage cuts and unpaid leave amid an aviation industry crisis sparked by the SARS health scare, a spokesman for the pilots' union said.
The union said Wednesday it wants SIA management to first let go of about 120 overseas pilots seconded to the airline before they can discuss measures to reduce costs, Air Line Pilots Association-Singapore spokesman Captain Frank John said.
He said the union voted overwhelmingly at a meeting late Tuesday to ask management to first address the issue of overseas pilots seconded to SIA before discussions are held on proposed cost-cutting measures.
Among the proposals was for pilots to take 10-12 days of unpaid leave every two months and wage cuts of about 22.5 percent.
"Last night there was a resolution saying that the company should first address the issue of surplus pilots ... Singapore-based pilots will then accept whatever measures are necessary thereafter," John told AFP.
"We are not saying it's a complete 'no' to any cost-cutting measures but we just feel that this should be the first step before any other meausures are considered."
About 120 pilots from a wholly-owned subsidiary, SIA Mauritius, have been seconded to the airline.
The union said that with the airline cutting more than 30 percent of its total capacity due to the travel slump sparked by Severe Acute Respiratory Syndrome (SARS), the first to axed should be these overseas pilots.
"Our view is that since there is no longer a requirement (for them) they should be removed from the equation. Then we can talk about the other measures thereafter," John said.
He said the union will hold another round of talks with the management within the week to present their position.
SIA, one of Asia's most profitable carriers before the SARS epidemic struck in March, announced last week further reductions in capacity, bringing the total to 31.5 percent.
Overall load factor fell to 58.70 percent in April from 72.30 percent a year ago, with passenger traffic diving 50.4 percent.
Richard Stirland, director general of the Association of Asia Pacific Airlines, has said the region's carriers are "bleeding cash on a daily basis" and warned recovery will be months away even if the epidemic is contained now.
SIA last month asked its 6,600 cabin crew to take unpaid leave and has let go more than 206 trainees as part of cost-cutting measures.
"We agreed that the outlook is bleak. The current loads and the short-term outlook is grey," John said.
"However, we are hopeful that once Singapore is (taken) off the WHO (World Health Organization) list of SARS-affected areas, we will then see a pick-up in the business," he said.
Singapore, which has 28 SARS deaths out of 206 cases, is one of the worst hit by the epidemic.
