Who Is Held Responsible For SIA's Hedging Losses?

[ckmpd]

SIA is expected to lose more than $1Billion in oil hedging losses this year.

Who is gg to be held responsible for such big gamble and losses? If they make money from this gamble, SIA Mgmt Board wld be quick to claim credit and pay themselves huge bonuses. Now they lost big. Socialise losses and quietly debit it to shareholders and pay cuts for innocent lower staff and pilots?

 

[tobelightlight]

SIA is expected to lose more than $1Billion in oil hedging losses this year.

Who is gg to be held responsible for such big gamble and losses? If they make money from this gamble, SIA Mgmt Board wld be quick to claim credit and pay themselves huge bonuses. Now they lost big. Socialise losses and quietly debit it to shareholders and pay cuts for innocent lower staff and pilots?

When did SIA started to do oil hedging?

 

[ckmpd]

When did SIA started to do oil hedging?

Probably long ago. SIA was making money for the 1st few yrs because oil price was rising. They SIA gambled on a hedge for 5yrs. Most airlines hedge for 1 or maximum 2yrs. SIA hedged at US$76 and oil is now at abt $40.

 

[tobelightlight]

Probably long ago. SIA was making money for the 1st few yrs because oil price was rising. They SIA gambled on a hedge for 5yrs. Most airlines hedge for 1 or maximum 2yrs. SIA hedged at US$76 and oil is now at abt $40.

maybe they do not understand that long ago and now at present moment , the market for oil is very diff. same as boomers whose ideas are always outdated. in the future, we will be less reliant to fossil fuel and more towards renewal energy. more and more pple are not receptive to fossil fuel now. maybe they do not see 5 years is a long period. there will be more and more changes around the world. in the area of fossil fuel, i see a decline there.

 

[songsongjurong]

when make monies, increase incentives and bonus, of turn south,shareholder bear the losses.

much like gambling,buy high sell low HC,rob peter (cpf) to pay paul simple.

 

[red amoeba]

Generally the CFO and CEO should be responsible. Ultimately the shareholder Temesak.

 

[syed putra]

Why would SIA hedge when oil cannot go upwards of usd70 or 80/ bbl? The mo ent it touches those figures, fracking concessions will restart.
Just run the business based on oil at oil at usd80. If its lower, you get a bonus. If it bets any higher due to force majeure or act if god, then just fuel surcharge on top like what US airlines are doing.

 

[syed putra]

Generally the CFO and CEO should be responsible. Ultimately the shareholder Temesak.

Shareholders are passive investors.

 

[ckmpd]

maybe they do not understand that long ago and now at present moment , the market for oil is very diff. same as boomers whose ideas are always outdated. in the future, we will be less reliant to fossil fuel and more towards renewal energy. more and more pple are not receptive to fossil fuel now. maybe they do not see 5 years is a long period. there will be more and more changes around the world. in the area of fossil fuel, i see a decline there.

quite true.

But the persons who recommend and approve such hefty hedging must take responsibility for the huge losses

 

[ckmpd]

when make monies, increase incentives and bonus, of turn south,shareholder bear the losses.

much like gambling,buy high sell low HC,rob peter (cpf) to pay paul simple.

yes, that is how things are in SG. In japan, the CEO gets chopped

 

[ckmpd]

Generally the CFO and CEO should be responsible. Ultimately the shareholder Temesak.

Agree. That's why SIA staff and shareholders are not happy that CEO gets away relatively scot free

 

[ckmpd]

Why would SIA hedge when oil cannot go upwards of usd70 or 80/ bbl? The mo ent it touches those figures, fracking concessions will restart.
Just run the business based on oil at oil at usd80. If its lower, you get a bonus. If it bets any higher due to force majeure or act if god, then just fuel surcharge on top like what US airlines are doing.

good point. But that's not what SIA CEO did. and SIA lost abt $1B this yr

 

[ckmpd]

Shareholders are passive investors.

share holders have a say on appt of CEO

 

[syed putra]

share holders have a say on appt of CEO

In thus case, gahmen hold majority through their nominees.

 

[ckmpd]

In thus case, gahmen hold majority through their nominees.

Yes. That's why govt normally has >50% share holding in important industries and companies

 

[ckmpd]

In thus case, gahmen hold majority through their nominees.

so when CEO is a govt crony, it is impossible to sack him. The way is to vote out an unclean govt which sides its crony even when he did wrong

 

[ckmpd]

In thus case, gahmen hold majority through their nominees.

in a way I support the pilots association for standing up to SIA. It is not abt pay cuts. It is abt fairness and accountability

 

[batman1]

in a way I support the pilots association for standing up to SIA. It is not abt pay cuts. It is abt fairness and accountability

The SIA Pilots Association (SIAPA) is NOT affiliated to NTUC and it really fight for the rights ,benefits and interests for its members. It is a real union negotiating against the management.It is NOT a fake union like NTUC.

 

[blackmondy]

Must be a particular manly-looking woman.

 

[ckmpd]

The SIA Pilots Association (SIAPA) is NOT affiliated to NTUC and it really fight for the rights ,benefits and interests for its members. It is a real union negotiating against the management.It is NOT a fake union like NTUC.

I admire Alpha S. These pilots have everything to lose. They are standing up for the lower level staff. Sadly not many forumners know that significance.