Singapore Airlines

(17-11-2014, 06:41 AM)greengiraffe Wrote: Qantas CFO tips a return to profit for international division
THE AUSTRALIAN NOVEMBER 17, 2014 12:00AM

I am not sure I read it right. This article isn't related to SIA, am I right?

Regards
Moderator

(16-11-2014, 06:26 PM)Belg Wrote:

(16-11-2014, 05:33 PM)specuvestor Wrote: Idiot prove or not, in a highly service oriented industry you dont want the idiot customer to make you look like the idiot. My guess is SIA refuse to waive or negotiate down the fee. Strictly speaking no argument SIA is legally right

Bang table of course works if u want him to be a repeat customer. SLS is not expecting repeating customers

It is the nature of the highly service oriented industry: from credit cards to restaurants. Standard Chartered lost me as a customer for past 15years because they did not waive a simple fee. Can SIA afford to do that or it has a value proposition that no one else has?

SIA won the battle but lost the war, if they didn't do anything to appease this non returning customer. Likewise, if they do go all out to waive it for him, it would create a precedent. Either way, the company has to have the foresight to react to such events if they would to turn Sq around.

I understand your frustrations with standchart for not being service oriented, cos 15 yrs ago they are too snobbish to know how to do business in Asia. Without rapport or 关系, nowhere long term business can be done.

Quite recently, SC carried out a mess reduction of headcount prior to alot of hot promotion to capture more account/credit holders. It is a tad too late don't u think for them to recover what could have been a different customer experience for u 15 years ago?

In these kind of service business you don't want to wash your dirty linen in public. The standard protocol is to negotiate with the client first before he makes a racket. Then in the event he brings it out to the open you can say you already gave a reasonable offer which he refused to accept.

Secondly it is always more expensive to acquire customers than keep the customer.

In the past SIA premium is very obvious. Nowadays SIA can't even claim to be accident free, in the face of rising competition from the GCC airlines who are not focused on PnL.

My biggest worry is that people focusing on SIA PnL is missing the significant impact on the 2nd and 3rd order impact on the tourism ecosystem. IMHO the secondary impact is already being shown in SATS and SIAEC.

(17-11-2014, 08:51 AM)CityFarmer Wrote:

(17-11-2014, 06:41 AM)greengiraffe Wrote: Qantas CFO tips a return to profit for international division
THE AUSTRALIAN NOVEMBER 17, 2014 12:00AM

I am not sure I read it right. This article isn't related to SIA, am I right?

Regards
Moderator

related as Qantas is a viable competitor... industry analysis remains a valid tool in equities analysis...

SIA to adjust capacity as October passenger load factor dips
By
Nisha Ramchandaninishar@sph.com.sg@Nisha_BT
BT_20141118_NRSIA18_1371822.jpg SIA said that traffic grew for Europe and East Asia - although at a slower clip compared to capacity - but demand softened for the Americas as well as West Asia and Africa. ST FILE PHOTO
18 Nov5:50 AM
Singapore

SINGAPORE Airlines' (SIA) passenger carriage for October slid 1.2 per cent year-on-year, versus 0.5 per cent growth in capacity, which nudged passenger load factor (PLF) lower to 77.2 per cent.

During the month, PLF fell 1.3 percentage points as PLF decreased across all

(17-11-2014, 02:50 PM)greengiraffe Wrote:

(17-11-2014, 08:51 AM)CityFarmer Wrote:

(17-11-2014, 06:41 AM)greengiraffe Wrote: Qantas CFO tips a return to profit for international division
THE AUSTRALIAN NOVEMBER 17, 2014 12:00AM

I am not sure I read it right. This article isn't related to SIA, am I right?

Regards
Moderator

related as Qantas is a viable competitor... industry analysis remains a valid tool in equities analysis...

Noted. Thanks

Regards
Moderator

Competitor analysis: Qantas has the additional benefit of a weak A$ where SIA doesn't since S$ is managed against a basket of currencies...

Oil price falls help fuel Qantas’s fortunes; shares break $2 barrier
THE AUSTRALIAN DECEMBER 02, 2014 12:00AM

Steve Creedy

Aviation Editor
Sydney
Qantas shares continue their oil-fuelled roll.
Qantas shares continue their oil-fuelled roll. Source: TheAustralian
QANTAS shares continued their oil-fuelled rise yesterday to break through the $2 barrier for the first time in more than three years as analysts continued to upgrade their expectations.

Qantas shares closed up 4.7 per cent, or 9c, at $2.01 after being dragged down from a late morning high of $2.135 by falls in the wider market.

Virgin, which has a free float of less than 20 per cent, closed down 1.2 per cent at 41c, while local shares of Air New Zealand rose 1.35 per cent to $2.25.

Falling fuel prices have bolstered global investor sentiment for airline stocks and Qantas has been bullish about their impact in the second half after predicting a modest $20 million gain from fuel and currency fluctuations in the current half. The airline is expecting a first-half profit but has yet to commit to a full-year result.

A hedging update released last week showed the airline’s fuel requirement was 85 per cent-hedged for the second half, with a 70 per cent participation rate in lower prices. Management believes its fuel hedging participation rate will give it a bigger benefit than competitors with a rate of 40-50 per cent.

“Qantas has significant scope to benefit from lower fuel prices with its current hedging profile, which protects the business against an adverse spike but allows substantial participation to the lower prices that we’re now seeing,’’ a spokesman said.

Citi analysts yesterday became the latest to upgrade Qantas as they raised their recommendation from neutral to buy and increased their target price from $1.48 a share to $2.25.

Citi is predicting a first-half pre-tax profit of $136.4m, up from $36.9m, and a full-year profit before tax of $387m.

This includes second-half fuel savings of more than $200m if oil remains in the $75-$80 price range.

A cloud on the horizon was an announcement by German railway company Deutsche Bahn that it is launching a multi-billion dollar lawsuit seeking damages from air cargo carriers found guilty by international competition authorities of operating a freight cartel.

Implicated airlines include Qantas, British Airways, Air France, Japan Airlines, KLM, Lufthansa and All Nippon Airways.

SIA tix are now cheap and no longer expensive.

(02-12-2014, 05:07 PM)butcher Wrote: SIA tix are now cheap and no longer expensive.

Hi Butcher,

I beg to differ. Comparing tier 1 airlines, SQ tix are still expensive.

Where did you find that it is no longer expensive?

Rgd.

Quite simple, I compared flights on similar routes and similar timing on airfares.com.sg (MISA) and priceline. Comparable to SQ is Cathay, I am not sure if you would consider SIA and Cathay as similar tier peers and these 2 are way cheaper than Brit Air, KLM etc.

Hi Butcher, try using Skyscanner instead. Will save you lots of money.