Singapore Airlines

[winston]

not vested

Singapore Airlines said it filled 68.5 percent of the available space on its planes in July, lower than 69.9 percent in June and 70.2 percent a year ago.

Source: Reuters

[winston]

Not vested

How much is SIA losing on the Virgin Atlantic deal ? US$600m ?

[winston]

not vested

Singapore Airlines reported a slightly weaker-than-expected 6 percent rise in third-quarter net profit of S$142.5 million as earnings from the sale of aircraft and spares offset losses at its cargo unit. It warned of tough conditions ahead.


Source: Reuters

[winston]

not vested

Shares of Singapore Airlines Ltd (SIA) underperformed the market, falling as much as 2.6 percent with 928,000 shares traded, 1.3 times the average full-day volume over the past 30 days.

SIA reported last week a slightly weaker-than-expected 6 percent rise in third-quarter net profit , as earnings from the sale of aircraft and spares offset losses at its cargo unit, and it warned of tough conditions ahead.

Maybank Kim Eng downgraded the stock to 'sell' from 'hold' and cut its target price to S$10.40 from S$10.50.

The broker said SIA's "disappointing" results affirmed its view that airlines, especially full-service carriers, face a very competitive environment with no reprieve in sight.

Source: Reuters

[winston]

Strawberry Ice-Cream

We've been sent an intriguing account of an exchange that occurred on a recent Singapore Airlines flight.

Our informant was travelling economy class together with his wife on a packed flight to Singapore.

After serving the main meal, a steward came around with a tray piled high with Haagen-Dazs ice cream. Our reader's wife was offered strawberry, which she doesn't particularly like, and asked the steward if he had either chocolate or vanilla.

This elicited a response that the airline's cabin services division might like to reflect on.

"Sorry, madam," the steward said before continuing in all seriousness. "But no chocolate or vanilla, as everyone always asks for it as they don't like strawberry, so now we only offer strawberry."

It seems hard to believe but we're assured this is what he said. Strange logic but it kept the couple amused for the rest of the trip.


Source: SCMP

[iam802]

Not vested

How much is SIA losing on the Virgin Atlantic deal ? US$600m ?

Here's something interesting. I don't know anything about FA, but it does make an interesting read.

http://www.baldingsworld.com/2012/12/14 ... -its-best/

...

“Delta will buy the 49 percent shareholding for $360 million, according to a stock exchange filling late yesterday. Singapore Air will book an S$322 million ($264 million) gain from the sale, after accounting for a writedown in its investment in the U.K. carrier controlled by billionaire Richard Branson…Singapore Air bought the stake for S$1.65 billion, Germaine Shen, a spokeswoman, said by e-mail.”

To summarize the article: Singapore Airlines buys its 49% stake in Virgin Atlantic for $1.65 billion SGD, sells it for $360 million, and books a profit of $322 million SGD. Only through extremely shady accounting can a company buy an asset for $1.65 billion and sell it for a $1.3 billion less but record a $322 million profit. Let’s explain how this is possible.

Because Virgin Atlantic is a private company, its shares are not publicly traded on an exchange and provide no public record to value the stake. Singapore Airlines therefore, marked the value of its Virgin Atlantic holding on its balance sheet based upon what it believed it could sell the shares for on the open market. So in the most technical of ways, Singapore Airlines is completely within its accounting rights to book a profit on this transaction.

However, a closer look reveals some very disturbing trends and patterns. First, to book a profit of $322 million SGD on a sale of $360 million, Singapore Airline implicitly valued the Virgin Atlantic stake at $38 million SGD. This means that Singapore Airlines was valuing its Virgin stake at 98% less than what is paid for it. Booking “profits” like this eventually cause a firm to go bankrupt.

....

[iam802]

Long term trend does not looks good.

Breaks down from kumo support 3 times since 2010.

2013Jul-SIA-640x210.png

[winston]

Travelers snap up half-price business tickets on Singapore Airlines after computer error

http://www.smh.com.au/business/aviation ... 200kc.html

[winston]

Singapore Airlines Refusing to Honor Business Class Mistake Fare

http://viewfromthewing.boardingarea.com ... take-fare/

[winston]

Singapore Air to Honor All Bookings After Premium Ticket Error

http://www.bloomberg.com/news/2014-12-0 ... error.html