SIA hedged fuel oil at record high - laugh stock of the Airline Industry

[scroobal]

Looks like SIA has screwed itself badly.

 

[williamsF1]

maybe they realized towards end of yr, still a lot of funds not depleted. so they decided to throw dump it on the fuel prices. funds fully depleted means, 2009 can ask for larger budget.

 

[shelltox]

SIA is the most profitable airline in the world with alot of spare cash. Hedging is a perfectly right way to do business especially for the oil industries. If oil prices had gone $200 SIA would be laughing however the market turn suddenly. However, if you looked in context SIA would had save alot of $ when oil shot to above $100.00 bcos they may had hedged it at a much lower price.

 

[PJ Boy]

SIA is the most profitable airline in the world with alot of spare cash. Hedging is a perfectly right way to do business especially for the oil industries. If oil prices had gone $200 SIA would be laughing however the market turn suddenly. However, if you looked in context SIA would had save alot of $ when oil shot to above $100.00 bcos they may had hedged it at a much lower price.

The financial leg is only half the story. It appears that the physical leg is not fulfilled, why, lousier business than expected?

 

[2lanu]

Hedging is done in business to limit losses. For the case of SIA their profit sure to be affected next qtr by "higher oil price" even when oil price at the moment is low.

Their lucky star maybe there is no strong competitor to punish them for this mis-cue.

 

[2lanu]

The financial leg is only half the story. It appears that the physical leg is not fulfilled, why, lousier business than expected?

Weaker business affect everybody. But being a leader in the industry do help. If SIA lower their airfare, who u think consumer will choose?

 

[po2wq]

dey hedged @ wat price? ...

 

[TeeKee]

Looks like SIA has screwed itself badly.

World class governance should pay for world class prices?

 

[2lanu]

At least this SIA is privated owned. If it was Temasick, I bet some local charges will rises with stupid reason of "had not rise price for 10 years"...

 

[TeeKee]

At least this SIA is privated owned. If it was Temasick, I bet some local charges will rises with stupid reason of "had not rise price for 10 years"...

privately owned? temasick have divested all SIA assets?

is temasick privately owned too?

 

[scroobal]

SIA is the most profitable airline in the world with alot of spare cash. Hedging is a perfectly right way to do business especially for the oil industries. If oil prices had gone $200 SIA would be laughing however the market turn suddenly. However, if you looked in context SIA would had save alot of $ when oil shot to above $100.00 bcos they may had hedged it at a much lower price.

The hedge took place above 100. Thats why its the talk of the industry. Because of their deep pockets they left it too late. The rest hedged for survival while the rest who did not just kept upping ticker price on captive routes.

 

[Neh_Neh_Pok]

World class governance should pay for world class prices?

Of cos mah, if ask you chrikukustians all stand outside on the hot sunny day in a field during you chrikukustians worsheepping your "Goat" every weekend, you chrikukustians want meh? You chrikukustians only want to stay inside aircon church and listen all the craps from the pestors only

 

[Neh_Neh_Pok]

privately owned? temasick have divested all SIA assets?

is temasick privately owned too?

You don't know ah? Go ask your pestors and read your 'Brable' lo, see if this issue got update in the 'Brable' or not lo