Singapore Airlines

[¯|_(ツ)_/¯]

24 Apr 2020 SQ answered SIAS questions on rationale of Rights and MCB:
https://links.sgx.com/FileOpen/Responses...eID=607937
(click to read)

It's a 12 pages long answers and I doubt you can find anything new.

Stay home and stay healthy, everyone.

[money]

Dont need to read so much. It goes something like, due to the drastic drop in revenue, most likely for a long period of time, we will run very low on cash. We need your cash to fund the losses.

And if we still fall short on cash, we will raise more cash through additional MCBs.

I dont think it is a wrong act, to save the national airlines, to save jobs. But investors should be more careful with their money

[peter88]

It is a tough biz, high capital expenditures , labor intensive , volatile operating cost fluctuation due to oil  . One virus just wipe out almost everything .

[davidoh]

My personal experience flying on SQ.

Despite flying SQ on many occasions BUT never got upgrade. Flying with United Airlines had been upgraded several times, on occasion on both legs of a trip.

SG-Brisbane business class price more expensive than competitors BUT planes among the oldest without sleep flat bed.

Cost saving but air-ticket among the most expensive. No complementary toys for kids for short haul.

Given up flying with SQ for sometime already.


SIA forget: 1. the may be the best at one point in time but while the improve marginally, other airlines had caught up and surpass their offerings. 2. Some other airlines offer better value. 3. The allure of the Singapore Girls is lost when many are recruited from the region.


I remember once when my luggage got delayed in SF. The United Airlines customer service told me to and get myself all the things I need and they would reimburse me.

I can't remember the incident in its entirety but SQ flight my business class seat had a malfunction which just cannot be lowered for sleeping on a 8 -9 hour flight. The flight was full. The chief steward told me they would make up to me from HQ. I received an email with the standard apology and for my inconvenience they gave me a some Kris miles as compensation. In comparison, when or similar issues happened eg for Etihad they refunded me my ticket. For SQ, either you go for the entire mile or otherwise don't bother at all. It leaves a bad after taste.

Unfortunately, the stupid genes in me still flies with SQ.

[Porkbelly]

SQ focuses on the business traveller. Their sales team are well rewarded for
getting contracts with companies to book business class travel. There are many variations
to these contracts, but most involve premium class travel.

If you look at the cities that SQ flies to, its all business. None are leisure.
There are attractive group discounts for companies that commit to contracts.
They of course leverage on their branding and charge more for their tickets.
If you join tours ex-SIN, with SQ as the carrier, you will be charged more, as compared
to prices, say 3-5 years ago... but still more than other carriers.

Inflight service, they still have the largest screen for premium class and a wider seat/bed too.
Yes, there are older configurations that are not appealing... and still more expensive than carriers on the same route.
If your employment allows you to travel premium with SQ, there is no debate. But I dont think you
will pay on your own the prices that SQ ask. Personally I would pay to travel premium with Air France
or any Flying Blue partner. Their loyalty programmes are friendlier.

SQ will survive, as tacitly guaranteed by SIN Gov.

[yeokiwi]

The most important reason of travelling in SQ is simply the direct flight with ample comfort and safety. Otherwise, if other equivalent airlines offer direct flights to the same destinations, they are equally attractive and most likely with lower prices.

[CY09]

I do agree as one who does not the privilege of business trip and only leisure. I have never flown on SQ for at least 15 years. That is because if I were to go places to Japan/Korea/Australia, I will fly on ANA/Korea Air/Qantas because of the cheaper alternative. Even when flying to Europe, its always Qatar airways.

There will always be direct flights connecting Singapore to another country. However if SIA flys there, the other country's airline too will be allowed to have a direct flight connection to Singapore. And in most cases, its the latter that seems to be the cheaper alternative.

SIA does not seem to be competing for the lower end tourist segment but fighting for premium passengers

[specuvestor]

It’s a hub and spoke model. So the question is why would you as a traveller land in SG instead of say Jakarta or KL or Bangkok? Geography matters but more importantly efficiency, comfort, cleanliness, language all matters. So it’s not just about SQ, it’s the whole package. And why it’s strategic also to SG economy as I mentioned. Our domestic volume is not going to be the backbone for 4 terminals.

SQ had Tiger in the past and now Scoot. There’s also SilkAir. The segmentation is clear. Problem is the competition is with the middle eastern airlines which are heavily subsidised. Ironically the low oil price will help SQ “reduce competition” but they still need to be relevant; focus on the software rather than the hardware, the total package and experience.

https://www.valuebuddies.com/thread-261-...#pid156970

[dreamybear]

I do agree as one who does not the privilege of business trip and only leisure. I have never flown on SQ for at least 15 years. That is because if I were to go places to Japan/Korea/Australia, I will fly on ANA/Korea Air/Qantas because of the cheaper alternative. Even when flying to Europe, its always Qatar airways.

SIA does not seem to be competing for the lower end tourist segment but fighting for premium passengers

I also fly only for leisure.

Although SIA is not my first choice now, there are advantages of flying direct :
- more convenient and safer to fly direct to countries if one has young children / elderly
- there are countries whose airlines do not have as good a track record

Most of my neighbours also do not fancy SIA.

Thus, I wld guess most of the SIA economy class customers are those whose source country is not Singapore coz I think the tickets are cheaper if one were to fly out from a foreign country via SIA ?

Having said that, I do not enjoy flying anyway, may change my mind if I get to fly business class one day. ha ha.

[¯|_(ツ)_/¯]

Just a reminder to attend EGM on 30 Apr 2020 at 11:30am.

29 Apr 2020 SQ published model answers to shareholders questions.
None of the answers were new as they had already been answered after SIAS raised them.
Some new questions were answered by model answers (what do you expects? this is SQ mah).

If there is anything interesting, then I would says that the hedge strategy is paused.
Not because SQ don't need to hedge but preferred to pause as there is too many uncertainty.

Capital investment wise, SQ gives the model answer to virgin aka will assess and let us know.
However, Vistara, SQ gives a direct answer - committed to support its fleet plan.

A minor notes that confirm that SRS and CPFIS limits can not be waive because of SQ rights issuance.
https://links.sgx.com/FileOpen/EGM%20Q%2...eID=608693
(click for details)