SIA Engineering Company

[Musicwhiz]

Sounds like potential trouble for SIA Engineering! Lets see how the company reacts to this threat.

[Temperament]

Will potential trouble for SIA Engineering affect SAT Services to a certain extent?
vested both.

[yeokiwi]

Seriously, you do not need BT to get the full story haha..(there goes the subscription...)

http://www.foxbusiness.com/news/2012/07/...dubai-hub/
http://www.ausbt.com.au/qantas-confirms-...ance-talks

[hongonn]

I have heard about Qantas want to use the middle east as transit point almost a decade ago. Their reason is middle east is a center point between Australia and Europe, the flight time will be more balance. Asia is too close to Australia for transit.

But then if i am a traveller, probably i will prefer to stopover at Asia more exotic places like Bangkok etc, nice people, good food and cheap shopping. I will be fine stopover for 2, 3 days.

But if i stop over at a desert island in middle east, what am i going to do there? Play sand castle? :p Things are expensive too.

So Qantas also must consider the passenger preference too, cannot suka suka change. If not all take Bangkok air, SIA, Turkish air than Qantas.

[yeokiwi]

I have heard about Qantas want to use the middle east as transit point almost a decade ago. Their reason is middle east is a center point between Australia and Europe, the flight time will be more balance. Asia is too close to Australia for transit.

But then if i am a traveller, probably i will prefer to stopover at Asia more exotic places like Bangkok etc, nice people, good food and cheap shopping. I will be fine stopover for 2, 3 days.

But if i stop over at a desert island in middle east, what am i going to do there? Play sand castle? :p Things are expensive too.

So Qantas also must consider the passenger preference too, cannot suka suka change. If not all take Bangkok air, SIA, Turkish air than Qantas.

I do not think Qantas intention is to move all the flights over. Rather, they will move some over so that it can use code sharing to Europe destinations with Emirates to cut cost.
But, most travelers dislike code sharing unless it is an upgrade from a lousy airline to a superior one.

[shanrui_91]

I do not think Qantas intention is to move all the flights over. Rather, they will move some over so that it can use code sharing to Europe destinations with Emirates to cut cost.
But, most travelers dislike code sharing unless it is an upgrade from a lousy airline to a superior one.

SATS might be affected as its sole competitor in gateway services is DNATA which is owned by Emirates. Though it depends on whether Qantas is orginally a customer of SATS or DNATA.

As for SIAEC, it will really depend on the extent of diversion of flight away from Changi Airport. Given that Qantas accounts for ~13% of total flight movement, there might be a 5% hit to total profit for SIAEC.

[Musicwhiz]

Thanks Shanrui. This piece of news may have some +ve bearing for SIAEC.

*Please visit the website for the full article.

The Straits Times
www.straitstimes.com
Published on Aug 04, 2012
SilkAir to buy up to 68 airplanes from Boeing
Order is carrier's largest; fleet size will more than double by 2021

By karamjit kaur aviation correspondent

BUOYED by the solid growth projected in regional air travel, SilkAir has announced plans for its biggest aircraft buy in its 20-year history.

The Singapore Airlines (SIA) subsidiary has sealed a deal with American aircraft maker Boeing to commit to up to 68 single-aisle jets.

Of the number, 54 are firm orders worth US$4.9 billion (S$6.1 billion) at catalogue prices; the remaining 14 are optional purchases.

By the time the last plane is delivered in 2021, SilkAir will have more than doubled its fleet size, the airline said yesterday. It now runs a fleet of 21 aircraft.

The last SilkAir order in 2006 was for up to 20 aircraft, valued at US$1.3 billion.

SilkAir's chief executive Marvin Tan told The Straits Times that the size of the order reflects the airline's confidence in the Asia-Pacific air travel market: "The last couple of years have been strong and moving forward; while there will be business cycles, we believe in the long-term potential of travel in this region."

Industry analysts read the airline's aggressive expansion plans as a clear sign of a strategy at the SIA group level to leverage on the regional and low-cost market to drive future growth.

SIA chief executive Goh Choon Phong said as much when he told The Straits Times in May that the group could no longer just bank on the parent carrier to keep flying high.

With Asia's low-cost travel market growing more than 30 per cent annually in recent years, against about 3 per cent for the traditional full-service sector, SIA will need to look not just to SilkAir, but also to its long-haul budget arm Scoot to drive future growth, he had said then.

SilkAir, with a lower cost base than its premium parent, is also in a better position to compete with the likes of Jetstar and Air- Asia, analysts said.

UOB Kay Hian's K. Ajith said: "Today's announcement shows that the focus is on SilkAir. SIA will still continue to operate the long-haul routes to Europe and the United States as well as some medium-haul routes, but the region is where growth is."

SilkAir's decision to go with Boeing - after having used Airbus for more than a decade - is also a significant shift.

For one thing, the switch will mean incurring higher costs maintaining two aircraft types. SilkAir chief Mr Tan said the intention is to phase out the Airbus planes.

He said: "Yes, in the interim, it'll add complexity to our operations and we'll manage it. But in the end, we made this big decision because we felt that overall, Boeing had a better package for us." He declined to elaborate.
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[Musicwhiz]

Just checked my bank account and noted that it has been credited with SIA Engineering's 15c/share final dividend. Feeling very pleased, and will bring my family out for a nice meal, while saving the rest of the dividend in order to reinvest it.

Looking forward to SIAEC's release of 1H FY 2013 results some time in late October 2012 and a potential 6c/share interim dividend (1H 2012: 6c/share).

[nitro]

China to build 80 small airports
http://in.news.yahoo.com/china-build-80-...03334.html

Beijing, July 21 (IANS) China will build at least 80 small airports by 2015 in the country, the aviation authority has said.

According to a recent State Council guideline, the country will build 82 small airports during the 2011-15 period.

The aim is to build an air transport network that will cater to about 90 percent of the population by 2020, China Daily reported Saturday.

However reports suggest that some 130 small airports in the country had registered a loss of over 2 billion yuan ($314 million) last year.

Li Jiaxiang, head of China's Civil Aviation Administration, told reporters that the government consider the sector as "a national strategic industry".

He said small or feeder airports, which serve cargo and short-distance flights, are indispensable to the local economic development.

Huang Min, an infrastructure director under National Development and Reform Commission, said 80 percent of the population will be able to use an airport within 100 km by 2015.

Huang said there will be 230 airports for passenger and cargo transport by the end of 2015, up from the current 182.

China lags behind many other major countries in the number of airports.

The US has about 19,000, while Brazil has about 700, according to the newspaper.

Many airports in China were built years ago and are now deemed too small, Huang said, adding plans are in place to expand at least 100 airports by 2015.

Last year, a fleet of 1,853 planes carried 290 million passengers and about 5.5 million tonnes of cargo, the daily said.


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Looking at SIAEC JV partners in China, none falls under the major MRO players.
- Hong Kong Aero Engine Services Ltd (HAESL)
- Pan Asia Pacific Aviation Services Ltd (PAPAS)
http://www.siaec.com.sg/joint_venture/papas.html


Guess who falls under one the major MRO players in China? Answer is here

http://www.flightglobal.com/news/article...on-353487/

ST Aerospace!

[Musicwhiz]

SIA Engineering has just released its 1H FY 2013 results.

Highlights:-

1) Revenue +6.4% to $585m for 1H FY 2013
2) Operating Profit -3.9% to $66m, due to higher staff costs
3) Profit attributable to shareholders -1.5% to $137.2m
4) EPS -2% to 12.47 cents/share
5) Interim dividend was raised from 6c/share last year to 7c/share
6) OCF = $42m for 1H 2013, against $20.7m for 1H 2012
7) FCF = $92.8m for 1H 2013, against $60.9m for 1H 2012, due in part to better dividends received from JV and associates

(Vested)