How should Singapore bail out SIA?

[poore]

rights issue.existing shareholders need to top up money to support SIA now .if you got 2 lots , must come up $9000 if I not wrong

 

[leonasiew]

They too big to fail la... Sure kena bailout one.

 

[Dr Christopher Cheok C S]

They too big to fail la... Sure kena bailout one.

Bail them out is because of face.
If we let them collapse and restructure the debts, we can get it for almost free like Hyflux Tuaspring.

$15billion can start another 4 Singapore airlines and 4x fleet size in times like this.

 

[Gallego99]

SIA needs to cum clean their outstanding futures position because our country helps them.

For example, assume oil is $20 now
if oil is US$10, their losses will be doubled from now.
If oil is US$30, their losses will be half from now

It's not about hedging fuel cost per se. That can be mitigated. It's DEMAND. As long as planes remain on tarmac, they will haemorrhage cash profusely. With most countries on lockdown mode, they are truly and royally farked. If there is any 'recovery' it will be gradual.

 

[Gallego99]

Bail them out is because of face.
If we let them collapse and restructure the debts, we can get it for almost free like Hyflux Tuaspring.

$15billion can start another 4 Singapore airlines and 4x fleet size in times like this.

Geez SOS, it's not about face or national pride. It is a strategic asset. Ask Sam Leong.

 

[Dr Christopher Cheok C S]

It's not about hedging fuel cost per se. That can be mitigated. It's DEMAND. As long as planes remain on tarmac, they will haemorrhage cash profusely. With most countries on lockdown mode, they are truly and royally farked. If there is any 'recovery' it will be gradual.

Passenger demand gone don't need $15billion and gov is reimbursing 75% of the local wages.

read the earlier posts about analysts highlighting futures losses.

 

[Gallego99]

rights issue.existing shareholders need to top up money to support SIA now .if you got 2 lots , must come up $9000 if I not wrong

Singapore Airlines taps investors for up to $10.5 billion amid coronavirus shock
By Anshuman Daga
SINGAPORE (Reuters) - Singapore Airlines (SIA) <SIAL.SI> is tapping existing investors for up to S$15 billion ($10.48 billion) through the sale of shares and convertible bonds to offset the shock to its business from the coronavirus outbreak.
The fundraising is being underwritten by the airline's biggest investor, state-owned Temasek Holdings [TEM.UL], which owns about 55% of the group.
"This is an exceptional time for the SIA Group," SIA Chairman Peter Seah said in a statement late on Thursday.
SIA's shares went into a rare trading halt earlier in the day after plunging to their lowest in 22 years as investors feared the pandemic will have a deep impact on the company.
Many governments worldwide have already stepped in to help airlines hammered by the virus-induced travel slump, with the United States offering $58 billion in aid as widespread travel restrictions force many carriers to ground fleets and order thousands of workers on unpaid leave to keep afloat.
"Under the current dire circumstances, the rights issue is the best tactical move for SIA. It underscores the carrier's strategic importance to Singapore and the island state's position as both a financial centre and aviation hub," Shukor Yusof, head of aviation consultancy Endau Analytics, said in a blog.
SIA has said it will cut capacity by 96%, ground almost its entire fleet and impose cost cuts affecting about 10,000 staff in what it called the "greatest challenge" it had ever faced.
The airline said it would issue S$5.3 billion in new shares to current shareholders and also issue 10-year bonds to raise up to a further S$9.7 billion.
"The size of the rights issue is more than expected, almost double SIA's current market cap, indicating the gravity of the situation the airline is facing," Yusof said.
In addition, SIA said it had arranged a S$4 billion bridge loan facility with DBS Bank to support the company's near-term liquidity requirements.
The rights issue will be offered at S$3 per share, a 53.8% discount to SIA's last traded price of S$6.5.
"This transaction will not only tide SIA over a short term financial liquidity challenge, but will position it for growth beyond the pandemic," said Dilhan Pillay Sandrasegara, CEO of Temasek International.
SIA said it would use the funding from the rights issues to beef up its capital and operational expenditure needs.

https://sg.finance.yahoo.com/news/singapore-airlines-taps-investors-10-184129164.html

 

[Gallego99]

Passenger demand gone don't need $15billion and gov is reimbursing 75% of the local wages.

read the earlier posts about analysts highlighting futures losses.

As far as future losses is concerned, it is not cast in stone. Anal ist can write all they want. It is imperative and paramount that the airline look at cost and all the controllables and address it as best they can.
It is the ripple impact on the rest of the economy that is of major concern,upstream and downstream. As far as your suggestion of starting anew, it will cost a lot more than maintaining the status quo.

Sigh........ your thread is misleading.

 

[laksaboy]

Convert the Changi Jewel into a 'short time hotel' and force all SIA stewardesses to become prostitutes and give half their earnings to SIA.

You'll get out of your financial doldrums in a jiffy.

 

[Dr Christopher Cheok C S]

As far as future losses is concerned, it is not cast in stone. Anal ist can write all they want. It is imperative and paramount that the airline look at cost and all the controllables and address it as best they can.
It is the ripple impact on the rest of the economy that is of major concern,upstream and downstream. As far as your suggestion of starting anew, it will cost a lot more than maintaining the status quo.

Sigh........ your thread is misleading.

No offence, You read too much straits times.

ST did not tell you about SIA's huge depreciation on planes because they also trade planes and leased them out. It is like a bus company operating bus leasing business and involved in buying and selling of used buses. Lastly, their biggest hole is still from oil futures. They need to cum clean whether these positions are closed.

You are a member here, so I am willing to share some insights with you. You are entitled to you your opinions. I did not mislead. Maybe it's my bad english.

 

[Dr Christopher Cheok C S]

Convert the Changi Jewel into a 'short time hotel' and force all SIA stewardesses to become prostitutes and give half their earnings to SIA.

You'll get out of your financial doldrums in a jiffy.

Jewel is bad for fengshui. Many said so. The water fall is like an air-well right to the bottom of the mall.

In Geomancy, Air wells are very bad for buildings. Worstest of all if right in the middle.

 

[Dr Christopher Cheok C S]

SIA staff can moonlight now. I think some of them makes very good bank RM
https://www.straitstimes.com/busine...ch-sia-to-let-staff-take-up-outside-temp-jobs

 

[Dr Christopher Cheok C S]

SIA had hedged 73% of its projected fuel consumption for 2021 at between US$58 per barrel for Brent crude and US$74 per barrel for jet fuel.
https://www.ig.com/sg/news-and-trad...rice-plunges-10--as-analysts-lowered-t-200327

 

[syed putra]

Even ryan air will lose money this year. All airlines will lose.
Its not that they cannot keep on flying. Its the people who are scared to travel.

 

[garlic]

Jialat liao.. sellers paying buyers.

(For a live blog on the U.S. stock market, click or type LIVE/ in a news window.)

* U.S. crude front-month drops to record low -$37.63 a barrel

* Indexes: Dow -1.79%, S&P 500 -1.27%, Nasdaq -0.46% (Updates with afternoon trade)

By Noel Randewich

April 20 (Reuters) - Wall Street fell sharply on Monday after U.S. crude futures turned negative for the first time in history, underscoring the chaos the coronavirus pandemic has unleashed on the global economy.

The S&P energy index tumbled 2.8% after the front-month May U.S. West Texas Intermediate (WTI) contract turned negative - unprecedented in history - with sellers offering buyers $37.63 a barrel.

With much of the global economy suspended due to the coronavirus, physical demand for crude has dried up, creating a global supply glut as billions of people stay home.

"Oil down is normally good for the rest of the sectors, but you can make the argument that it is so low that it's not good for anybody in terms of what it's going to do to unemployment and economic growth," said Jake Dollarhide, chief executive officer of Longbow Asset Management in Tulsa, Oklahoma. At 2:26 p.m. ET, the Dow Jones Industrial Average was down 1.79% at 23,807.69 points, while the S&P 500 lost 1.27% to 2,838.15.

The Nasdaq Composite dropped 0.46% to 8,610.34. (Additional reporting by Shreyashi Sanyal and C Nivedita in Bengaluru Editing by Nick Zieminski)

 

[nayr69sg]

Jialat liao.. sellers paying buyers.

(For a live blog on the U.S. stock market, click or type LIVE/ in a news window.)

* U.S. crude front-month drops to record low -$37.63 a barrel

* Indexes: Dow -1.79%, S&P 500 -1.27%, Nasdaq -0.46% (Updates with afternoon trade)

By Noel Randewich

April 20 (Reuters) - Wall Street fell sharply on Monday after U.S. crude futures turned negative for the first time in history, underscoring the chaos the coronavirus pandemic has unleashed on the global economy.

The S&P energy index tumbled 2.8% after the front-month May U.S. West Texas Intermediate (WTI) contract turned negative - unprecedented in history - with sellers offering buyers $37.63 a barrel.

With much of the global economy suspended due to the coronavirus, physical demand for crude has dried up, creating a global supply glut as billions of people stay home.

"Oil down is normally good for the rest of the sectors, but you can make the argument that it is so low that it's not good for anybody in terms of what it's going to do to unemployment and economic growth," said Jake Dollarhide, chief executive officer of Longbow Asset Management in Tulsa, Oklahoma. At 2:26 p.m. ET, the Dow Jones Industrial Average was down 1.79% at 23,807.69 points, while the S&P 500 lost 1.27% to 2,838.15.

The Nasdaq Composite dropped 0.46% to 8,610.34. (Additional reporting by Shreyashi Sanyal and C Nivedita in Bengaluru Editing by Nick Zieminski)

That's because this is just a big casino for the "oil traders"

Anyone who has no capacity or intent to take delivery of oil should not be allowed to BUY oil. And similarly anyone who does NOT have any oil to sell should not be allowed to SELL oil.

It is ridiculous these "Financial or Commodity derivatives". Yes all in the name of liquidity but all it creates is a false market.

 

[garlic]

Broker's take: DBS downgrades SIA to 'hold' on capacity cuts, fuel hedging
THU, MAR 19, 2020 - 10:38 AM
NG REN JYE[email protected]@NgRenJyeBT

DBS Group Research has downgraded Singapore Airlines (SIA) to "hold", and reduced its 12-month target price to S$6.60 from S$10.40, it said on Thursday.
PHOTO: REUTERS
DBS Group Research has downgraded Singapore Airlines (SIA) to "hold", and reduced its 12-month target price to S$6.60 from S$10.40, it said on Thursday.
SIA shares were down S$0.28 or 4.3 per cent to S$6.25 as at 10.15am.
DBS analyst Paul Yong cited SIA's deep cuts in passenger capacity and its extensive jet fuel hedging programme as key negatives for the airline ahead of a challenging few months due to the coronavirus pandemic.
These factors led DBS to project the lowest estimates on the street, it said.

DBS projected SIA to record a S$1.26 billion loss in earnings before interest and taxes for fiscal 2021, and a 25 per cent decline in revenue year on year.
SEE ALSO
Broker's take: DBS downgrades Sunpower to 'hold', warns of potential share dilution

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SIA on Wednesday suspended additional services, which means it will operate at 50 per cent of its capacity that had originally been scheduled up to end-April.
SIA now has more fuel volume hedged than it will consume in the next few months and is effectively long on oil price for the next two quarters, said Mr Yong.
Oil prices are likely stay low in the months ahead, which will lead to substantial fuel hedging losses for SIA, he added.
Yong noted that at end-December 2019, SIA had hedged 79% of its projected Q4 2020 jet fuel consumption at US$76 per barrel and 73% of its FY2021 fuel consumption at between US$58/bbl for brent (22%) and US$74/bbl for jet fuel (51%).


https://www.businesstimes.com.sg/co...des-sia-to-hold-on-capacity-cuts-fuel-hedging

The CEO now shld be cannot sleep liao....

 

[vamjok]

now oil -30 USD. SIA jia sai already

 

[zhihau]

now oil -30 USD. SIA jia sai already

Welcome back, bro!

 

[eatshitndie]

adding insult to injury, they need to find and pay for storage space for oil since they basically "own" so much of it.