True.
But it is a little too little and a little too late.
I foresee SIA will make its 1st annual loss in the near future. Goh Choon Pong is sleeping and not visible enough
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Serious SIA Is Making 1.5mil loss on the daily basis
- Thread starter gingerlyn
- Start date
True.
But it is a little too little and a little too late.
I foresee SIA will make its 1st annual loss in the near future. Goh Choon Pong is sleeping and not visible enough
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They can always headhunt Teo Ser Luck.
I dont think they are ready to give up their ghost yet.
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I know nothing of the airline business but it seems the increase of SIA's domestic market size has coincided with its drop in profits-meaning these foreign talents, PR's and new citizens- invited in by the millions are not taking SIA group's flights.
The millions of Pinoys, PRC's , Indians FT's ect2 are flying their own airlines instead .i.e Philippines Airlines,China Southern Airlines, Air India etc2.
Assuming we have 3 million foreigners working here and each have average family size of 4-and fly twice a year -means minimum 3mm x 4 x 2=24 million tickets per year.
Had these jobs gone to locals-will they be flying SIA instead?
So we are giving foreigners jobs at the expense of locals-but these foreigners working here spend it on foreign airlines (not SIA).
As a local I used to insist my company buy SIA tickets for me-but not since the pro foreigner policy of the PAP started.
Same for other businesses-jobs goes to foreigners who then spend it on foreign companies-so its funds flowing out of our depressed economy to the benefit of Pinoyland, India,ect2.
Even GIC/Temasek doing the same- spending and losing billions on foreign companies (and creating jobs for foreigners ) while local companies struggle to get funding.
I see it as a systemic singapore problem not confined to SIA alone-but SIA's case is more acute as it has no monopoly/duopoly protection (unlike other " privileged " GLC's in the local market) and has to compete head on in the open market. Best example is PUB-can increase H20 prices by 30%-because can force it down the throats. Can SIA (like PUB)says it will increase prices to reflect cost-irrespective of what consumers can afford/will want to pay ?
I do not see it as an economic/financial/management problem-but a political problem.
The millions of Pinoys, PRC's , Indians FT's ect2 are flying their own airlines instead .i.e Philippines Airlines,China Southern Airlines, Air India etc2.
Assuming we have 3 million foreigners working here and each have average family size of 4-and fly twice a year -means minimum 3mm x 4 x 2=24 million tickets per year.
Had these jobs gone to locals-will they be flying SIA instead?
So we are giving foreigners jobs at the expense of locals-but these foreigners working here spend it on foreign airlines (not SIA).
As a local I used to insist my company buy SIA tickets for me-but not since the pro foreigner policy of the PAP started.
Same for other businesses-jobs goes to foreigners who then spend it on foreign companies-so its funds flowing out of our depressed economy to the benefit of Pinoyland, India,ect2.
Even GIC/Temasek doing the same- spending and losing billions on foreign companies (and creating jobs for foreigners ) while local companies struggle to get funding.
I see it as a systemic singapore problem not confined to SIA alone-but SIA's case is more acute as it has no monopoly/duopoly protection (unlike other " privileged " GLC's in the local market) and has to compete head on in the open market. Best example is PUB-can increase H20 prices by 30%-because can force it down the throats. Can SIA (like PUB)says it will increase prices to reflect cost-irrespective of what consumers can afford/will want to pay ?
I do not see it as an economic/financial/management problem-but a political problem.
Last edited:
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all of SIA's budget offshoots have failed terribly unlike Richard branson's virgin airline and virgin blue.what is wrong with their business model?Do sinkies understand the intricacies and innovations of how a budget airline work?perhaps the routes in Asia are bad?
lets fucking face it,the only reason SIA succeeded because of the lack of competiton,simpler times and the fact that it had the support of the entire state behind its back,i believe thats the key to many SG operations.What worthless pieces of shit SG companies are.there is no chance in hell of any of SIA's offshoot to work unless its hundred percent manned by oompa loompas singing songs of how they fucked up and rolling sinkies out one by one like giant swollen blueberries.
[video=youtube;eg9EuFmo-VU]https://www.youtube.com/watch?v=eg9EuFmo-VU[/video]
Thinking if below $10 buy, div yield at 4.4% pretty good.
if u buy at abt $10, what happens if SIA goes to $9 or $8?
This afternoon, it went down to $9.97
cronyism instead of meritocracy kills
I think both Scoot and Tiger have turned around and have been in the black lately as evidenced by the fairly respectable bonus they have announced. I think they got over 2 months bonus.
I took a risk and bought some at 9.99. I cant really explain why I did this though because normally I am averse to airline shares as they are subject to many types of shocks and downturns. Perhaps I felt that it was oversold.
Today, SIA was indeed oversold. Let us hope that price will pick up in the next two weeks. You can then let go of your SIA shares
Yes fingers crossed for SIA price to go up. As an aside, I bought into Jumbo too at 62 cents yesterday. Their Singapore business is tepid at the moment but their business in China has taken off quite well. There is also an outlet in Vietnam. All this is organic growth which makes their prospects look good. The only trouble is Temasek is a shareholder and their record of late is not very encouraging. I hope they didnt jinx this promising company.
I wish you well in your shares
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Share go up and down up and down everyday, what's the big deal if SIA goes down to $8 or 9$? He already mentioned he's buying for dividends.
Well the assumption is that SIA will not go the way of NOL, Chartered Semiconductor ..........
If I were an investor in SIA I would find it very disturbing that they are making a loss when oil prices are so low.
The same thing has happened with Cathay Pacific.
Qantas is making profit.
Garuda Airline is making profit.
Emirates is making profit.
Many North American Airlines are making profit.
Costs too high for Hong Kong and Singapore? Land Costs? (having HQ offices in two of the most expensive cities in the world with highest real estate prices doesn't help).
The market is also changing to low cost airlines.
We have seen examples of this type of companies before. When competitors are making money and they are making LOSSES. Something is very wrong.
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http://m.todayonline.com/business/s...orm-operations-and-reintegrate-cargo-business
Singapore Airlines restructuring: Some jobs may become irrelevant
By Rumi Hardasmalani
Published 2:05 PM, May 19, 2017
Updated 7:17 PM, May 19, 2017
SINGAPORE — Singapore Airlines (SIA) announced a major business transformation plan on Friday (May 19), entailing a review of all its business divisions and processes, after reporting an unexpected fourth-quarter net loss of S$138 million.
This was the company’s first loss in five years.
The flag carrier said it will be taking “bold radical measures”, with a focus on enhancing cost and service efficiencies to better position the company for long-term growth.
In response to queries on potential job losses as a result of the transformation drive, SIA chief executive officer Mr Goh Choon Phong said, “There will certainly be changes in the way we do things and staff will have to pick up new skills… Some of the current jobs would have to be redesigned because they may not be relevant anymore.”
He added that the company would be looking at ways to support its staff in retraining and redeployment.
According to Mr Goh, all aspects of the airline group’s businesses will be looked at including new areas of growth.
“The transformation is not just about how we can cut cost but also how we can generate more revenue for the group, how we can improve our processes more efficiently, …so that we can be lot more competitive going forward.”
“It will be a comprehensive review on whatever we are doing and how we can better position ourselves for growth,” Mr Goh added.
SIA has set up a “transformation office” comprising six full-time staff and a vice president, reporting directly to the CEO and guided by the company’s board. The airlines also said that a dedicated email contact has been created for the airline staff to give their suggestions and feedback.
“We have taken active steps to communicate that to all staff. We can expect lot more activities in this area including an organisational restructuring,” Mr Goh said.
According to analysts, SIA’s move to review and streamline operations is not surprising given the cut-throat competition within in the region and beyond, not to mention the impact on the airlines’ yields. The aggressive fare strategies of budget airlines as well as the Middle Eastern rivals have dented margins of legacy carriers like SIA.
“The region’s carriers operate in a very competitive environment. Business models that may have worked well in the past need updating,” said Mr Greg Waldron, Asia Managing Editor at FlightGlobal.
“The hub models of Cathay Pacific and SIA, for instance, were developed at a time when low cost carriers, Middle Eastern carriers, and Chinese hub carriers were not a major issue. These major competitive challenges demand that responsible management teams look at how to stay viable to ensure future growth,” said Mr Waldron.
“Take a look at what is happening at Cathay. There are job cuts at senior levels to reduce cost pressures,” said Mr K Ajith, director of Asia Transport Research at UOB Kay Hian.
Earlier this year, Hong-Kong based Cathay Pacific Airways launched a three-year overhaul to trim costs after reporting its first loss in eight years. The airline, according to reports, is targeting to save some 30 per cent in employee costs through job cuts and other organisational restructuring as part of the massive revamp.
SIA will have to manage its labour resources based on productivity, said Mr Ajith. The airline may see itself as having a high cost base and a need to be more cost effective in the increasingly competitive climate, he added.
“SIA and other airlines certainly need to adapt to the changing environment,” agreed Mr Brendan Sobie, analyst at the Centre for Aviation.
“Like most airlines, (SIA) is always looking at potential changes and has executives and staff reviewing its strategy and the way it does business. Creating a special office perhaps formalises this process and provides additional impetus to dig deeper and implement more changes,” Mr Sobie said.
TIMELINE: SIA CARGO OPERATIONS
SINGAPORE-Singapore Airlines (SIA) announced on Friday that SIA Cargo, a wholly-owned subsidiary of SIA will be re-integrated as a division within the SIA group. The process, aimed at improving efficiency, is expected to be completed in the first half of 2018.
Most of SIA Cargo’s nearly 900 employees will be retained in the new cargo division, while some will be transferred to other divisions, according to SIA CEO Mr Goh Choon Phong.
“We are retaining the business, hence, we will need most of the employees to continue operating our cargo business as a division of the airline,” Mr Goh told reporters on Friday.
The national carrier said in a media release there will be no change to SIA Cargo’s operations. Seven Boeing 747-400 Freighter aircraft will continue to be operated, while the Cargo Division will continue to manage the passenger aircraft ‘bellyhold’ space for SIA, SilkAir and Scoot.
In July 2001, SIA Cargo was hived off into a separate company within the SIA Group, given the strategy then was around growing its fleet to up to 17 747-400Fs.
“The airfreight market has since seen structural change, however, and SIA Cargo’s freighter fleet has been ‘right-sized’ in recent years to the current seven aircraft while the proportion of revenue from passenger aircraft ‘bellyhold’ capacity has increased significantly,” SIA said.
Despite the smaller freighter fleet, SIA Cargo’s overall capacity, including that from passenger aircraft, still grew at a range of 4 to 5 per cent in the past two financial years.
Buy more? Better then FD rate of 1% I hear.
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