SINGAPORE Airlines quarterly profit declines 53pc to US$108 million

SINGAPORE Airlines (SIA) posted a 53 per cent fourth quarter net profit loss to S$135.2 million (US$108 million) year on year, drawn on revenues of S$3.88 billion which changed little.

Controlled by state investor Temasek Holdings, Singapore Airlines, the world's second largest airline, attributed the decline to the harsh global economic environment, decreasing demand in passenger and cargo markets as well as high fuel prices. Its fuel bill soared 33 per cent in the quarter from a year ago, the company said.

Its profit was lower than the average forecast of S$162.5 million from four analysts polled by Reuters. This is the fourth straight quarter that the airline's profit has underperformed analysts' expectations.

Singapore Airlines said weakness in both passenger and cargo sectors would persist. "Forward bookings continue to show signs of weakness in the final quarter of the financial year, due to uncertainty in the global economy and the protracted Eurozone debt crisis," the airline said in a statement.

"Passenger yields are expected to remain under pressure while cargo yields are expected to continue to decline," it said, adding that slack air cargo market is likely to continue due to soft demand in major developed countries.

To expand, the airline plans to commence its own long-haul budget airline, Scoot, by mid-2012, reported the USA Today, saying that this would help the Singapore Airlines group, including its regional unit, SilkAir, and its short-haul budget affiliate Tiger Airways (with a 33 per cent stake), to run against the odds in 2012.

Late last year, the International Air Transport Association (IATA) reduced its forecast for airline industry profits by a quarter to $3.5 billion for 2012, adding that IATA warned the industry's losses would increase to an US$8.3 billion if Europe's debt crisis deepens and provokes a new financial crisis. Singapore Airlines quarterly profit declines 53pc to US$108 million

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Singapore Airlines and Garuda Indonesia Airlines signed codeshare cooperation

Singapore Airlines and Garuda Indonesia Airlines signed a joint Singapore-Denpasar flight. In codeshare cooperation, the two airlines will provide connectivity services for its passengers.

Ng Kian Wah, Senior Vice President of Sales Regions Singapore Airlines, explains, the codeshare agreement will effective on December 1, 2010. "The two airlines will cooperate on the basis of the principle of reciprocity on all flights between Singapore and Denpasar," said Ng Kian.

The agreement is a shared desire to offer more flight options for customers. It also aims to improve the accessibility of foreign tourists who will travel to the island of Bali.

Garuda Indonesia customers will be able to enjoy connectivity services from Singapore to all destinations of Singapore Airlines in the world. Similarly, on the contrary, Singapore Airlines customers can enjoy the benefits of connectivity Garuda Indonesia's domestic destinations from Denpasar, Bali.

Singapore Airlines operates three flights per day to Singapore-Denpasar route, while Garuda has daily flights. The cooperation is believed to be able to maximize the benefits of two airlines from the route.

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Singapore Airlines (SQ) will Buy 50 New Aircraft

Singapore Airlines (SQ) will buy 50 new aircraft to support flight operations of all of their route serves. Public Relations Manager of Singapore Airline (SIA) Gloria Henriette said the ordered aircrafts is consisting of eight units of Airbus A380-800, two units of Airbus A330-300, 20 Boeing 787-9 Dreamliners, and 20 units of Airbus A350-900 XWb.

Gloria explains, for A380 and A330 are already produced commercially can begin to be sent in stages starting next year. However, for the B787 and A350, both of a new aircraft which are still prepared by manufacturer for commercial sale. Thus, the delivery depends on the readiness of Boeing and Airbus. "But from now we already ordered. Later, all aircraft will be purchased. Singapore Airlines (SQ) has enough financial to buy it," said Glory, Wednesday (10/27/2010).

If Singapore Airlines (SIA) use the option to pay cash for all aircraft ordered, they surely must prepare a lot of money. The Airbus A380 have a price per unit of USD 317.2 million to USD 337.5 million. As for the A330 at USD 195.9 to USD 205.7 million per unit. While the A350 XWB at USD 238.2 million to USD 242.9 million per unit and  B787-9 sell at USD 194 million to USD 205.5 million per unit.

"Singapore Airlines (SQ) has a policy if an aircraft has been operated for five years it will be handed over to its subsidiary, Singapore Aircraft Leasing Enterprise (SALE) for lease to other airlines. Along with the arrival of new aircraft," Gloria explained.

Today's the Singapore-based airline already operates 105 aircraft, comprising 11 of A380-800, 5 of A340-500, 17 of A330-300, 7 of B747-400, 19 of B777-300ER, 12 of B777-300, 9 of B777-200ER, and 25 of B777-200 with an average aircraft age of 5 years 11 months. As for cargo aircraft, Singapore Airlines (SIA) operates 11 of B747-400 Freighter.

Singapore Airlines (SQ) flights to 17 countries around the world, namely Australia, Bangladesh, Belgium, Brunei, China, Denmark, Egypt, France, Germany, Greece, India, Italy, Japan, Kenya, Kuwait, Malaysia, and Indonesia. For Indonesia, the SIA has a flight from Singapore to Denpasar 21 times per week, and Singapore-Jakarta, 49 times per week.

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