.:. Singapore Airlines .:.

[ddes]

This is a relationship where both sides want completely different things.

China Eastern wants SQ's involvement to improve its branding and operations strategy, hoping this will lead to a better run airline, as well as to fend off hostile takeovers by China Southern and Air China.

Singapore Airlines on the other hand, has never really explicitly stated what it wanted from this deal other than "cooperation" to which many are taking as matching schedules, consolidation, codeshares and perhaps joint operations. But again, this has all been speculation.

Your issue of selling stakes in airlines by government is irrelevant. This deal actually almost went through until Air China, supported by Cathay Pacific, offered a higher price for the airline. The main contention was never the losing of national sovereignty of China Eastern. For such a tightly run aviation industry, it was always expected that SQ would never actually have a control proportionate to its stake size in the airline.

The minority shareholders did what they thought would be best for the airline, by rejecting the deal. They are mildly educated about financial details, but failed to see the possibilities of a partnership with SQ, preferring to earn quick cash by Air China's offer for a higher share price.

China's big 2 are increasingly having minds of their own, with Air China (I remember very clearly) saying they want it to go from 3 to 1, while China Southern taking a somewhat less bold but similar statement. Even Shanghai Airlines has big plans of its own as well. Hainan is small now, but what's to say in 10 years time? China was just CNAC not very long ago, who's to say what will or will not happen in the future.

With this growing independent thinking, I agree with you, the Chinese government not only must structure how a foreign stake sale, but the entire direction of the Chinese aviation industry (which I am more concerned about than any stake sale to a foreign entity).

[JediAlf]

Airline denies merger report
By Zhou Yan (China Daily)
Updated: 2008-09-09 10:36

China Eastern Airlines said it had no plan to merge with Shanghai Airlines, despite previous reports that the government might be considering a tie-up between the two.

"We don't have a plan to merge with Shanghai Airlines because the aviation industry is suffering from stagnancy this year," said Luo Zhuping, board secretary of China Eastern. But he added that the government may take action to encourage a merger.

"The potential merger is being discussed only at the government level at this point," the Wall Street Journal said yesterday, citing China Eastern President Cao Jianxiong.

Cao, quoted by the journal, said that the government plans to first inject capital into China Eastern and then to merge it with Shanghai Airlines. The combined companies would then consider a potential stake sale to Singapore Airlines.

Cao could not be immediately reached for further comment.

Shanghai Airlines' board secretary Xu Junmin said over the phone yesterday that he hadn't received any notice, and had no comment on the talks.

"The two Shanghai companies are not likely to combine together unless there is impetus from the government," said Li Lei, an analyst with CITIC China Securities Co. "The country's airways are in its lean time, and the two firms probably will report a loss in profit this year and even next year."

China Eastern, the country's third largest airlines, fell 28.5 percent in net profit to reach 41.62 million yuan in the first six months due to the soaring fuel cost, according to the firm's interim report.

"These aren't easy talks for the two firms given their relationship," Li said. "They competed more than they cooperated in the past. "

Yang Guoxiong, director of the State-owned assets supervision and administration commission of Shanghai municipal government, denied that the commission was involved in the deal in a press briefing last Wednesday, and said he was not in a position to comment on a listed company.

Shanghai Airlines is under the supervision of the commission.

As for restarting talks between China Eastern and Singapore Airlines, Luo said they had not yet considered resuming the talks.

Luo told China Daily this July that the company may continue discussing the issue with Singapore Airlines after the Olympics. The proposed deal worth $923 million failed on Aug 9 after the expiry date of the agreement had passed.

"Singapore Airlines may lose interest in China Eastern because of the latter's continuing weak performance this year," Li said, adding that it could be a different story if the authority was involved.

A shares of China Eastern fell 5.24 percent to close at 3.98 yuan yesterday.

[hkskyline]

Originally Posted by ddes

This is a relationship where both sides want completely different things.

China Eastern wants SQ's involvement to improve its branding and operations strategy, hoping this will lead to a better run airline, as well as to fend off hostile takeovers by China Southern and Air China.

Singapore Airlines on the other hand, has never really explicitly stated what it wanted from this deal other than "cooperation" to which many are taking as matching schedules, consolidation, codeshares and perhaps joint operations. But again, this has all been speculation.

Your issue of selling stakes in airlines by government is irrelevant. This deal actually almost went through until Air China, supported by Cathay Pacific, offered a higher price for the airline. The main contention was never the losing of national sovereignty of China Eastern. For such a tightly run aviation industry, it was always expected that SQ would never actually have a control proportionate to its stake size in the airline.

The minority shareholders did what they thought would be best for the airline, by rejecting the deal. They are mildly educated about financial details, but failed to see the possibilities of a partnership with SQ, preferring to earn quick cash by Air China's offer for a higher share price.

China's big 2 are increasingly having minds of their own, with Air China (I remember very clearly) saying they want it to go from 3 to 1, while China Southern taking a somewhat less bold but similar statement. Even Shanghai Airlines has big plans of its own as well. Hainan is small now, but what's to say in 10 years time? China was just CNAC not very long ago, who's to say what will or will not happen in the future.

With this growing independent thinking, I agree with you, the Chinese government not only must structure how a foreign stake sale, but the entire direction of the Chinese aviation industry (which I am more concerned about than any stake sale to a foreign entity).

Of course selling the stake to a government-owned airline is relevant. That was the exact plan. In order to share management expertise and make operations efficient at China Eastern, China Eastern would sell a stake of 16% to Singapore Airlines and 8% to Temasek. Singapore Airlines is turn is 54% owned by Temasek, a government entity. It wasn't just "cooperation" that you allude to. I doubt SQ would do all these things for free anyway, and I doubt existing management at China Eastern would accept foreigners flying in to sit as their bosses without some formal shareholding agreement to solidify the reason why they are there.

Singapore Airlines would've gotten a lot more than "cooperation" from China Eastern. Had their plan succeeded in management expertise transfer and all the other things you talked about, they would've made a significant gain on the shares that they held.

The political wrangling is significant since the government owns Air China. Ultimately, it was a showdown between the government's stance with China Eastern and the government's stance with Air China.

While this was not an issue of losing control of China Eastern as foreign ownership restrictions will keep that in check, the problem was selling off even a stake of 24% to a foreign company, which is foreign government-owned, which would provide significant access to China's largest city. That certainly didn't sit well from both economic and political perspectives. Had the government carried out its stance that a Singaporean stake was acceptable (which was why the bid proceeded in the first place), they would not have allowed state-owned Air China to make a counter-bid. Clearly, there was a lot of politics behind the government's 2-face contradictory approach.

Listed companies are ultimately responsible to their shareholders. Hence, what the shareholders choose will always be right. A partnership with Singapore Airlines was not in their best interests.

If I can get $5 for my share of China Eastern now when someone else is offering $3.80, and with that alternative, I may have to wait a few years for the share price to appreciate to $5, then why should I refuse the $5 now instead of wait a few years and hope for the best? The prudent investor with the simplest knowledge of finance would make the right and obvious choice.

[RafflesCity]

SIA to move to Ion Orchard

11 Sep 08

SINGAPORE Airlines (SIA) will be on the move next year.
The airline's downtown service centre, currently at Paragon Shopping Centre on Orchard Road, will relocate a few doors away to the upcoming Ion Orchard mall at Orchard Turn.

When contacted, Mr Stephen Forshaw, SIA's vice-president of public affairs, said: 'Singapore Airlines will be moving its service centre in Paragon to Ion Orchard mid-next year.

'Details of the new service centre will be announced to our customers in due course.'

He declined to disclose how big the service centre at Ion will be.

When contacted, Ion would not comment on this either, but it did say SIA's is 'likely (to be the) only airline service centre' at the mall.

SIA currently occupies two retail spaces in Paragon. One, on the ground floor, houses its Priority Passenger Service Club Service Centre for frequent flyers.

The other, on the second floor, houses its service centre, where customers can make reservations and pick up tickets.

Paragon would only confirm that 'SIA's lease expires next year'.

But it told The Straits Times earlier this year that SIA's second-floor space will make way for Italian label Gucci, which will have a two-storey store on that corner of Bideford Road.

It will also have a five-storey, custom-designed facade on the building's exterior.

MICHELLE TAY
Straits Times

[JediAlf]

China Eastern maintains interest in SIA, not SAL
Wednesday September 10, 2008
www.atwonline.com

China Eastern Airlines rejected widespread reports that it plans to merge with Shanghai Airlines, saying it has received no such directive from the Chinese government and that there have been no negotiations, CEA Board Secretary Luo Zhuping told ATWOnline.

"So far we haven't been notified about a merger by Beijing," Luo said. SAL Board Secretary Xu Junmin corroborated Luo's claim (ATWOnline, July 25). CEA is controlled by the State-owned Assets Supervision and Administration Commission of the State Council, while the Assets Supervision and Administration Commission of the Shanghai Municipal Government is the controlling stakeholder of SAL.

Luo said quotes attributed to CEA MD Cao Jianxiong claiming that a combination with SAL will "for sure" occur before any deal is reached with potential strategic investor Singapore Airlines were inaccurate. "There's no such thing. So far we haven't held any talks about a merger with SAL," Luo confirmed.

He said SIA remains CEA's preferred partner despite the Aug. 9 expiration of the stake sale deal between them (ATWOnline, Aug. 12). "We really missed a very good opportunity to introduce SIA as our strategic investor because we could reach three goals that way: To diversify our stakeholder makeup, enhance our management level and obtain the cash injection we need. Our debt-to-asset ratio has jumped as high as 95% now," Luo explained, although he admitted that the industry downturn has made the pursuit of the SIA investment more difficult.

"The growing trend of negative domestic market growth is worrying us most," he said. According to CAAC, domestic passenger traffic fell 1.1% year-over-year in May and 3.8% in June. July figures have not yet been released.

by Katie Cantle

[RafflesCity]

SIA receives 6th Airbus A380

18 Sep 08



FROM Saturday, Singapore Airlines will operate the Airbus 380 twice a day - up from a daily now - on the Singapore-London route.
This follows the arrival of its sixth superjumbo which landed at Changi Airport on Thursday at 8.23am.

The plane left the Airbus delivery centre in Toulouse, France on Wednesday.

SIA, the first carrier to operate the A380 in October last year, also uses the aircraft on two other popular routes - Singapore-Sydney and Singapore-Tokyo.

The Singapore carrier has 19 firm orders for the A380.

Emirates has also started flying the superjumbo while Australia's Qantas will introduce the plane to its fleet next month.

By Karamjit Kaur AVIATION CORRESPONDENT
Straits Times

[Nov]

So remind me again where can we fly the A380 to (on SQ)?

[ddes]

SIN to London Heathrow (2 daily), Tokyo Narita and Sydney.

[blizzardtweaker]

Okay, there has been intense discussion about SQ wanting to operate SIN-HKG-EWR/JFK in place of its existing SIN-FRA-JFK service to NYC.

I was just thinking about this:
Is it possible for SQ to operate aircraft on behalf of UA (or any other US or HK carriers that have the rights), with SQ also codesharing on that flight. Something like a 'wet-lease' of equipment and crew.
That way, all the legalities would be bypassed, no?
So officially, this would be a UA flights, operated by SQ's planes, serving SQ's meals, IFE and with SQ's crew and with an additional SQ codeshare flight number.
Many airlines wet lease, so this shouldn't really be a problem, so long they can get a willing HK/US airline. That airline could even choose to not sell any tickets, and make it a 100% codeshare flights such that SQ is solely responsible for selling all tickets, as well as its profitability.

They could also do this for other routes not accessible to them, like the highly coverted SYD-LAX, by 'codesharing' with UA or even a no-name US/Aus regional airline.

I'm not sure if this make sense to you, but does anyone know if this can be done legally or not?

Oh and for those of you interested, heres the heated and some-what laughable arguement: http://www.airliners.net/aviation-fo....main/4148850/

[ddes]

I've seen that argument on Airliners.net.

Firstly, I think SQ is dumb to fight for the SYD-LAX route. It is a long detour and is not logical at all. With Qantas actually announcing a reduction in frequency with the use of the A380, along with V Australia's introduction of flights from BNE and SYD and United's existing service, I doubt that pie is very attractive now.

I, as a citizen of Singapore, will not support SQ's fight for SYD-LAX.

SIN-HKG-JFK on the other hand, is a more logical request, with the route at 15546km, just slightly longer than the SIN-EWR flight. SIN-FRA-JFK on the other hand, is over 16000km. So based on distance alone, HKG is the best stopover for flights to New York.

[JediAlf]

Airbus to provide total support package for Singapore Airlines' leased A330 fleet
15 September 2008
Airbus website

Airbus has finalised a Total Support Package (TSP) agreement with Singapore Airlines to maintain its future fleet of 19 A330 aircraft.

The TSP, which will be performed by Airbus Customer Service, will provide fleet management in addition to line and base maintenance as well as full component support. These services represent part of a suite of broad range of tailored maintenance and engineering solutions offered under Airbus' Flight Hour Services (FHS).

Under this agreement, Airbus will appoint appropriate members from the Airbus Maintenance, Repair and Overhaul (MRO) Network, as well as equipment manufacturers to perform this range of services.

The Airbus maintenance package will be delivered to Singapore Airlines starting with the first delivery in early 2009. This latest contract further develops Airbus’ in-service maintenance support capability, building on an earlier A380 component support programme that Airbus is providing to Singapore Airlines.

The Airbus TSP enables Singapore Airlines to benefit from the experience and expertise offered by Airbus and its partners in the areas of maintenance, engineering, reliability and supply chain management. In addition, the TSP offers a predictable cost structure to the customer.

"This agreement extends our long-term business cooperation with Singapore Airlines," said Charles Champion, Airbus Executive Vice President, Customer Services.

"This is the most comprehensive selection yet of Airbus' expanding portfolio of services solutions which, in cooperation with our MRO Network partners and equipment suppliers, will help airlines meet their business objectives by increasing fleet availability and reducing operating costs."

Airbus is an EADS company.

[JediAlf]

Singapore Airlines Launches New Service From LAX
Date Submitted: Fri Sep 19, 2008
BY NIMMI RAGHUNATHAN
(India Journal)

LOS ANGELES, CA – Singapore Airlines on Sept.10 displayed once again its proclivity for luxury, service and organization at a celebration held to mark the launch of its All Business Class Service from Los Angeles to Singapore. With this operation, the carrier notches another industry first.

A non-stop 18 ½ hour long haul flight, it is expected to appeal to the corporate traveler with on flight amenities that allows office work to continue and in the words of one Singapore Airline official and aims to make you “feel that you have never left the ground.”

Of course it comes at a premium price and at a time when the U.S. economy is not too rosy. The airlines’ Regional Vice President of the Americas, W.K.Lim, acknowledged as much in his short speech to the 250 odd guests assembled over dinner. At a time when fuel costs were soaring and the industry was cutting back services, it was natural, he said to ask why a luxury product was being launched. The answer to the “why now?” explained Lim, was this: customer innovation and the desire to push the envelope to make flying the airline an unforgettable experience; commitment to stick to service; the will and strong financial backing even as others were scaling back.

As Lim said, the airline does not compromise on quality. It has come to be known for the upkeep of its fleet, punctuality and its vast entertainment and food options. With attention squarely on the client, it was the first to introduce and maintain the popular individual TV screen in all cabins and constantly works to see how the check-in queues can be reduced. The air hostesses, clad in the Pierre Balmain-designed uniforms that has been untouched for forty years is now a easily recognizable classic that stands for in-flight service excellence.

Indeed, officials were quick to point out that the company’s reputation has always attracted corporate travelers willing to pay a premium. The all business class flight service was first launched from Newark in May and the company says that the feedback and bookings in that sector has done nothing to dim the optimism for the service from the Southland.

At LAX’s AA hangar, guests were invited to tour the newly retrofitted Airbus A340-500 which has been fixed with just 100 of Singapore Airlines’ new Business Class seats. At 30” wide the airline says it is the widest in the industry in this class and can transform itself into a full-flat bed. The color coordinated beige and brown seats are arranged in a forward facing, 1-2-1 pattern that offers travelers direct access to the aisle. Each seat also has a fixed back shell with storage space and extends to the sides for added privacy.

When not sleeping on the long haul flight the myriad options that can be exercised include working off a 15.4” monitor with a raft of office applications including Power Point and Excel. Each seat is also equipped with a USB port allowing work with out a laptop. Travelers can select from over a 100 movies or listen to a slew of music channels. Further, passengers can also bring along their personal audio and video content from their iPod or iPhone.

Singapore Airlines was recently named best airline and best business class in the annual Skytrax awards. Among the features which landed it the ranking was the food. The new service will have signature dishes by renowned chefs including Alfred Portale and Gordon Ramsay.

Guests on the ground, at the Sept.10 event were treated to some of the same delectable food. The hangar, which transformed into a banquet area became a music hall with David Benoit’s Smooth Jazz wafting through the cavernous tarmac.

[blizzardtweaker]

I, as a citizen of Singapore, will not support SQ's fight for SYD-LAX.

SIN-HKG-JFK on the other hand, is a more logical request, with the route at 15546km, just slightly longer than the SIN-EWR flight. SIN-FRA-JFK on the other hand, is over 16000km. So based on distance alone, HKG is the best stopover for flights to New York.

Although SQ may be our national carrier, it is but a corporate enitity, and Singapore is only so small, causing them to want premuim market else where. The idea of flying SIN-HKG-EWR is more for the HKG-NYC market than the SIN-NYC one. (but of course there would be some passenger ex-SIN heading for NYC) This would allow them to replace the loss making SIN-FRA-JFK service, while still maintaining 3 classes connectivity to NYC from SIN.
-----------
Last time i checked, SQ was supposed to get their 330s end 2008, guess it got pushed back...anyone got a date or sources for definite routes (not predictions)?

[ddes]

I think the premium market for the HKG-JFK route is grossly exaggerated. Already on the route are Continental Airlines with Cathay Pacific hosting 4 daily flights to New York (one flight via YVR). In that sense, CX has already established itself firmly on the route and business companies like the flexibility of choosing from those CX flights.

Go into the market with too few frequencies and lousy time slots and SQ, despite its great inflight product, will only be able to compete on price alone. (same with its DME-IAH flight)

Also, Cathay Pacific is also considered by many to be almost an equal of SQ. So SQ can hardly compete on onboard products.

For the A330s, I've seen in the Australian forum of SSC that SQ plans to put them on the SIN-BNE services very early 2009. And that's the only thing I've been able to pull out so far on the A330s.

[hkskyline]

As a regular business traveller, I will not fly a premium airline unless I get flexibility in scheduling. A 1x/daily frequency is simply inadequate, as my schedules can change frequently and waiting up to 24 hours for the next direct flight is not acceptable. This is especially more important for such a long flight and the alternative is an even longer flight with stopovers.

The key question to ask is what can Hong Kong can in return for allowing SQ to fly HKG-JFK/EWR? From a cost vs. benefits analysis, there isn't much Hong Kong can gain out of the Singapore market relative to what Singapore can get out of this route. This is a similar argument to the Australians' transpacific stance.

[ddes]

If you take a look at the cost vs. benefit analysis, Singapore will never get its rights.

Perhaps Australia can get onward rights to Paris (which I've heard they have wanted but somewhat solved with the codeshare with AF) or Hong Kong can get onward rights to Africa, India and the Middle East (but I doubt it is attractive enough).

The only argument Singapore can really argue against is its "prices are too high, not competitive enough" argument, even if it's weak. In this case, I feel this argument backfires on itself, especially in the Australia transpacific case, as SQ was actually offered rights to fly MEL/BNE-LAX but have not taken up that offer, and therefore made its Australia-USA case incredibly weak.

[ddes]

SIA to start Riyadh service
SINGAPORE - SINGAPORE Airlines (SIA) said on Tuesday it will begin service to the Saudi Arabian capital Riyadh in December.

SIA said the flights, via Dubai, will begin Dec 14 using the Boeing 777-200 aircraft. The carrier will operate four flights a week on the route.

'The introduction of Singapore Airlines' new service to Riyadh is a sign of our confidence in the tremendous potential of the Middle Eastern region,' said Mr Huang Cheng Eng, a Singapore Airlines' executive vice president.

SIA said it will continue its three times a week service to Jeddah, via Abu Dhabi. -- AFP

[Nov]

Wow, lots of Arabs coming to Singapore. I wonder why... must be the cheap electronics.

[ddes]

Looks like SQ is building up a mini hub at DXB, flying to Singapore, Moscow, Istanbul and now Riyadh.

[koresh]

Singapore Airlines

SQ 220 SYD-SIN
Aircraft : Boeing 747-412
Reg :9V-SPM




SQ 231 SIN - SYD
Aircraft: Boeing 747-412
Reg: 9V-SPG

Departing Changi Airport



Inflight