Singapore Airlines

[specuvestor]

I would think their fuel hedge losses will be tapering off QoQ as they would not be hedging much for 2H20, though there's still possibly residual of long dated hedges

Cut 4,300 positions:
1. 2,400 from Singapore and Oversea stations
2. 1,900 from job freeze, early retirement and voluntary release
Goh Choon Phong: "The next few weeks will be some of the toughest in the history of the SIA Group as some of our friends and colleagues leave the company. We will conduct this process in a fair and respectful manner, and do our best to ensure that they receive all the necessary support during this very trying time."
https://links.sgx.com/FileOpen/NE-1420.a...eID=631225

I try not to read in between the line but I couldn't stop myself for imagining significant losses from fuel hedge.

I hope I am wrong.

Stay home and stay safe, everyone.

[pianist]

singapore without any hinterland or natural resources has always prized its labor force/human capital as the important assets...ironically, it is the very own precious labor assets that it has to let go in a resetting times like this

[¯|_(ツ)_/¯]

8.8b Rights issued
- 4.4b Utilised
-------
  4.4b  Remaining raised right
  1.65b Long Term loans secured on aircraft
  0.5b  Short Term unsecured loans
  1.7b  Roll over Line of Credit due in 2020 to 2021 and beyond
+ 6.2b  Option to raise MCB
-------
14.45b Cash/Credit line/MCB Option
====


With Cash/Credit/MCB option of $14.45b, SQ plans to eliminate 4,300 positions.

I think the residual long dated fuel hedge likely to be significant.
Otherwise, I doubt SQ dare/want to do this now.

The numbers should be out very soon, let's see.

Stay home and stay safe, everyone.

[¯|_(ツ)_/¯]

SQ Retrenchment
1. Majority foreigners/cabin crews in overseas
2. For >= 2 years in service with SQ
3. One month for every year of services
4. Capped at 25 months
5. Up to 3 months for paid in lieu
6. In accordance with unions collective agreements
7. Foreign staff affected, sufficient time will be given for those currently overseas to return to Singapore to settle their affairs here
8. Foreign staff in Singapore, will also be given sufficient time to settle their personal affairs before returning to their home countries
9. Will continue to be covered for hospitalization and surgical expenses till 31 Mar 2021
10. professional counsellors and a repatriation and relocation consultant to be present with appropriate support and resources
11. arrange for transport home by taxi or private-hire vehicle
12. publish an alumni talent directory to connect departing employees with potential employers

Stay home and stay safe, everyone.

[¯|_(ツ)_/¯]

https://forums.hardwarezone.com.sg/eat-d...105-3.html

Stay home and stay safe, everyone.

[weijian]

Opening up step-by-step.

Singapore to unilaterally lift border restrictions for visitors from Australia and Vietnam from Oct 8

https://www.businesstimes.com.sg/governm...-australia

[¯|_(ツ)_/¯]

Sep 2020 Operating Results update
Demand for air travel continued to remain soft.

Singapore Airlines (SIA) and SilkAir continue to rebuild their network, reinstating services to Brunei, Fukuoka, Kathmandu and Male and increasing the frequency of selected flights in their passenger network in October, November and December 2020. The SIA Group welcomes announcements by the Singapore government that would help to further restore passenger traffic and revive the Singapore air hub in a controlled and safe manner. The Group will continue to closely monitor demand patterns in international air travel, review its fleet and network plans, and be flexible and nimble in deploying capacity.
https://links.sgx.com/FileOpen/opstats-s...eID=635351

Stay home and stay safe, everyone.

[¯|_(ツ)_/¯]

8.8b Rights issued
- 4.4b Utilised
-------
  4.4b  Remaining raised right
  1.65b Long Term loans secured on aircraft
  0.5b  Short Term unsecured loans
  1.7b  Roll over Line of Credit due in 2020 to 2021 and beyond
+ 6.2b  Option to raise MCB
-------
14.45b Cash/Credit line/MCB Option@11Sep2020
-1.80b Utilised for OOE, refund tickets, debt service
------
12.65b Cash/Credit line/MCB Option@19Oct20210
======

https://links.sgx.com/FileOpen/Use%20of%...eID=635651

Stay home and stay safe, everyone.

[dreamybear]

8.8b Rights issued
- 4.4b Utilised
-------
  4.4b  Remaining raised right
  1.65b Long Term loans secured on aircraft
  0.5b  Short Term unsecured loans
  1.7b  Roll over Line of Credit due in 2020 to 2021 and beyond
+ 6.2b  Option to raise MCB
-------
14.45b Cash/Credit line/MCB Option@11Sep2020
-1.80b Utilised for OOE, refund tickets, debt service
------
12.65b Cash/Credit line/MCB Option@19Oct20210
======

https://links.sgx.com/FileOpen/Use%20of%...eID=635651

Stay home and stay safe, everyone.

May I clarify the "4.4b Utilised" in your post ? According to the link u attached, the announcement stated "The cumulative use of proceeds is approximately S$6.2billion for the period between 8 June 2020 and 13 October 2020."

It seems abt 70% had been used ?

[¯|_(ツ)_/¯]

bear,
4.4b utilised was copied from 19 Aug announcement (link)

agree on the 70% aka 6.2b out of 8.8b Rights issued.
however, what SQ wanted to says is the cashflow should also account for the loan term loan secured, line of credits and further MCB options.

I think this is logical.

Since we are here, I actually had a theory.
SQ is actually worst by doing so many revenue generation activities, eg. selling $600 dinning experience, re-starting non-stop flight to New York,etc.

My theory is although it's revenue generation, it actually hurt it's bottomline.
What I meant to says is:
for every event/activity SQ executing, the revenue will increase but the profit hurts.
if SQ just keep hibernating, aka instead of flying here and there with empty vessels, it will not gain the revenue but it's profit does not suffer so much.

And, of course, in this case, I am actually thinking of the cash burn-rate.

By engaging various revenue generation activities, SQ is burning cash faster than it wanted to.

Then, the questions is why is SQ flying non-stop without passengers?
Why SQ wanted to offer dinning experience that's not sustainable?
(my theory is very simple - if it's sustainable aka profitable, then this would be an excellent revenue streams, isn't it?)

Your guess is as good as mine.

Another of my theory is it's fuel hedge strategy will bleed badly too.

Stay home and stay safe, everyone.