Category Archives: Singapore Airlines

Singapore Airlines to return to New York

Singapore Airlines has made this announcement:

Singapore Airlines (SIA) will return to New York on November 9, 2020, when it launches nonstop flights between Singapore and John F. Kennedy International Airport.

Operating to JFK International Airport would allow Singapore Airlines to better accommodate a mix of passenger and cargo traffic on its services to New York in the current operating climate. SIA’s nonstop services to New York would also be supported by the growing number of transfer passengers who can now transit via Singapore’s Changi Airport.

SIA also anticipates significant cargo demand from a range of industries based in the New York metro area, including pharmaceuticals, e-commerce and technology firms. The new service will provide the only nonstop air cargo link from the U.S. Northeast to Singapore, which serves as a regional distribution hub for many major U.S.-based companies.

The Airline will operate the Airbus A350-900 long-range aircraft on the route. This aircraft is configured with 42 Business Class, 24 Premium Economy Class and 187 Economy Class seats.

Today, SIA operates nonstop services to Los Angeles. It will continue to review its operations to the United States, and assess the growing demand for air travel amid the ongoing recovery from the Covid-19 pandemic, before deciding to reinstate services to other points in the country.

Resuming New York Services from a New Home

Starting on November 9, 2020, SQ24 will operate three-times weekly from Singapore Changi Airport to John F. Kennedy International Airport. From November 11, 2020, SQ23 will operate thrice weekly from John F. Kennedy International Airport to Singapore Changi Airport.

Details of the flight services are shown below:

Flight	Flight Days	Departure Time*	Arrival Time*	Flight Time
SQ 24 SIN-JFK	Mon, Wed, Sat	0225	0730	18 hours 5 minutes
SQ 23 JFK-SIN	Mon, Wed, Fri	2230	0610 (+2 days)	18 hours 40 minutes

*All timings in local time

Singapore Airlines launches “Discover Your Singapore Airlines suite of experiences”

Singapore Airlines (SIA) today launched the Discover Your Singapore Airlines suite of experiences, which comprises three exciting and all-new initiatives that have been specially curated for our customers and fans in Singapore over the next few weeks.

Restaurant A380 @Changi offers an exclusive dining experience with SIA’s award-winning service inside the Airbus A380, the world’s largest passenger aircraft. Diners can choose from special menus for each cabin class. Options include our signature international cuisine, as well as the best dishes from our special Peranakan menu that has been designed by acclaimed Singaporean chef Shermay Lee. Limited slots for an exclusive pre-lunch tour of the A380 will also be available. All diners will receive KrisShop discounts, a limited edition goodie bag and additional gifts if they turn up in traditional heritage wear. Reservations start on 12 October 2020, and Restaurant A380 @Changi will operate on 24 and 25 October 2020.

Over two weekends in November during the school holidays, Inside Singapore Airlines will provide an exclusive behind-the-scenes tour of our training facilities with a wide range of activities for the entire family. Visitors will be brought on a tour of more than 70 years of SIA’s history, get an opportunity to interact with our pilots and cabin crew, and find out more about the intensive training that they undergo.

Children can enjoy craft activities such as balloon sculpting and making their own batik roses. They will also have the option to dress up and role play as cabin crew, and take home their very own SIA sarong kebaya uniform. Adults can choose to operate a full flight simulator, taste some of our premium in-flight wine labels, and attend a grooming workshop. A selection of the most popular meals that are served on board SIA flights will also be on sale. Bookings open on 1 November 2020, and the tours will be held on 21, 22, 28 and 29 November 2020.

SIA@Home is for customers who are keen to enjoy the world-renowned SIA in-flight dining experience in the comfort of their own home. They can choose from 10 menus featuring our exclusive First Class and Business Class meals, which will come complete with wine or champagne. Limited edition dining ware and amenities are also available depending on the package chosen. The special cabin crew concierge service for SIA@Home bookings opens on 5 October 2020.

SIA will implement enhanced cleaning procedures at all premises, as well as precautionary measures such as temperature screening, safe distancing and the SafeEntry digital check-in system, to ensure the health and safety of all customers.

The Discover Your Singapore Airlines experiences are the result of a market study and a comprehensive review, which also considered factors such as the attractiveness of the initiatives to SIA’s customers and members of the public, the environmental implications, and their financial viability. An idea for a one-off short tour flight, or a “flight to nowhere”, was also initially considered but not pursued after the review.

“With Covid-19 drastically reducing the number of flights operated by the SIA Group, we have created unique activities that would allow us to engage with our fans and customers during this time. These experiences offer something for everyone – from frequent flyers who miss our world-class in-cabin products and service, to couples and families who want an exclusive dining experience, and parents who are after an enjoyable activity-filled day with their children during the school holidays,” said SIA Chief Executive Officer Mr Goh Choon Phong.

“There has been a lot of interest in our customer engagement initiatives over the last few weeks, and I would like to thank everyone for their great ideas and suggestions. We are very encouraged by and grateful for the enthusiasm and passion that we have seen. All of us are eagerly looking forward to welcoming you to discover your Singapore Airlines.”

Singapore Airlines to cut around 4,300 positions

Singapore Airlines has made this announcement:

The Singapore Airlines (SIA) Group has announced the difficult decision to cut around 4,300 positions across its airlines. After taking into account a recruitment freeze, natural attrition, and the take up of voluntary departure schemes, the potential number of staff impacted will be reduced to about 2,400 in Singapore and in overseas stations.

This decision was taken in light of the long road to recovery for the global airline industry due to the debilitating impact of the COVID-19 pandemic, and the urgent need for the Group’s airlines to adapt to an uncertain future.

As previously indicated, the Group expects to operate under 50% of its capacity at the end of financial year 2020/21 versus pre-COVID levels. Industry groups have also forecast that passenger traffic will not return to previous levels until around 2024.

Relative to most major airlines in the world, the SIA Group is in an even more vulnerable position as it does not have a domestic market that will be the first to see a recovery. In order to remain viable in this uncertain landscape, the Group’s airlines will operate a smaller fleet for a reduced network compared to their pre-Covid operations in the coming years.

To prepare for this future, the Group needs to cut around 4,300 positions across Singapore Airlines, SilkAir and Scoot. This has been mitigated by a recruitment freeze that was implemented in March 2020, open vacancies that were not filled, an early retirement scheme for ground staff and pilots, and a voluntary release scheme for cabin crew. Collectively, these measures have allowed the Group to eliminate some 1,900 positions.
As a result, the potential job cuts across the Group may be reduced to around 2,400 in Singapore and across SIA’s overseas stations. Discussions have begun with our Singapore-based unions. The Group will work closely with them to finalise the arrangements as soon as possible for those affected, and try to minimise the stress and anxiety on our people.

Singapore Airlines Chief Executive Officer Goh Choon Phong said: “When the battle against COVID-19 began early this year, none of us could have predicted its devastating impact on the global aviation industry. From the outset, our priorities were to ensure our survival and save as many jobs as possible. Given that the road to recovery will be long and fraught with uncertainty, we have to unfortunately implement involuntary staff reduction measures.

“Having to let go of our valuable and dedicated people is the hardest and most agonising decision that I have had to make in my 30 years with SIA. This is not a reflection of the strengths and capabilities of those who will be affected, but the result of an unprecedented global crisis that has engulfed the airline industry.

“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.”

Singapore Airlines aircraft photo gallery:

Singapore Airlines secures S$10 Billion in fresh liquidity

Singapore Airlines (SIA) has announced the Company has raised S$10 billion of liquidity through its recent Rights Issue, as well as a mix of secured and unsecured credit facilities. This puts SIA on a steady footing as it tackles the challenges posed by the global Covid-19 outbreak.

SIA secured S$8.8 billion in liquidity through the successful completion of the rights issue on June 5, 2020. A further S$900 million was raised through long term loans secured on some of SIA’s Airbus A350-900 and Boeing 787-10 aircraft.

In addition, the Company has also arranged new committed lines of credit and a short term unsecured loan with several banks, which provide further fresh liquidity amounting to more than S$500 million.

Separately, all existing committed lines of credit that were due to mature during the course of 2020 have been renewed until 2021 or later, thus ensuring continued access to more than S$1.7 billion in liquidity.

During this period of high uncertainty, SIA will continue to explore additional means to shore up liquidity as necessary. For the period up to July 2021, the Company also retains the option to raise up to a further S$6.2 billion in additional mandatory convertible bonds, which will provide additional liquidity if necessary.

Singapore Airlines Chief Executive Goh Choon Phong said. “We are grateful for the strong support of our shareholders for our successful rights issue, which has secured the company’s future amid an unprecedented global health and economic crisis. We are also grateful to our relationship banks for their support in extending additional secured and unsecured loans, as well as committed lines of credit. SIA will remain steadfast and agile during this period of great uncertainty, and continue to act nimbly in responding to the evolving market conditions.”

Singapore Airlines secures funding to survive the coronavirus crisis

Singapore Airlines has announced it has secured up to S$19 billion ($13 billion) of funding to help see it through the coronavirus crisis and expand after the crisis.

Singapore Airlines Group cuts 96% of its capacity and grounds 185 aircraft

Singapore Airlines has made this announcement:

Singapore Airlines will be cutting 96% of the capacity that had been originally scheduled up to end-April, given the further tightening of border controls around the world over the last week to stem the Covid-19 outbreak.

This will result in the grounding of around 138 SIA and SilkAir aircraft, out of a total fleet of 147, amid the greatest challenge that the SIA Group has faced in its existence.

The Group’s low-cost unit Scoot will also suspend most of its network, resulting in the grounding of 47 of its fleet of 49 aircraft.

The SIA Group diversified its network and set up Scoot to spread its risks and cater to a wide range of passenger and market segments. However, without a domestic segment, the Group’s airlines become more vulnerable when international markets increasingly restrict the free movement of people or ban air travel altogether.

It is unclear when the SIA Group can begin to resume normal services, given the uncertainty as to when the stringent border controls will be lifted.

The resultant collapse in the demand for air travel has led to a significant decline in SIA’s passenger revenues.

The Company is actively taking steps to build up its liquidity, and to reduce capital expenditure and operating costs. As mentioned on March 17, 2020, SIA will continue to aggressively pursue all measures to address the impact of the Covid-19 outbreak on the Company. These include:

• ongoing discussions with aircraft manufacturers to defer upcoming aircraft deliveries. If agreed, this will consequently defer payment for those aircraft deliveries;

• salary cuts for the SIA Group’s management with the Company’s Directors also agreeing to a cut in their fees, and a voluntary no-pay leave scheme up to certain management positions. Given the worsening situation, the unions have been engaged on the additional cost-cutting measures that are needed and more steps will

be taken imminently; and

• over the last few days, the SIA Group has drawn on its lines of credits to meet its immediate cash flow requirements. The SIA Group is engaging in discussions with several financial institutions for its future funding requirements.

The Company continues to explore measures to shore up its liquidity during this unprecedented disruption to global air travel. The Company will release further details when such measures have been firmed up.

Singapore Airlines aircraft photo gallery:

SilkAir aircraft photo gallery:

Scoot aircraft photo gallery:

Singapore Airlines and SilkAir to reduce services due to Covid-19 outbreak

Singapore Airlines and SilkAir will temporarily reduce services across our network due to weak demand as a result of the Covid-19 outbreak.

Details of the affected flights can be found here.

We will continue to monitor the situation and make further adjustments as necessary.

Singapore Airlines aircraft photo gallery:

First photos: The first Airbus A380 is dismantled

Formerly operated by Singapore Airlines as 9V-SKA (msn 003), the airframe is the first Airbus A380 to be dismantled and broken up at Tarbes Airport by Tarmac Aerosave.

Photos: Eurospot.

The return of the Singapore Airlines Boeing 737

Singapore Airlines was an early adopter of the Boeing 737, operating the initial 737-100 model. Singapore operated 5 of the type which it inherited from MSA – Malaysia-Singapore Airlines.

As previously reported, Singapore Airlines has announce it will fold subsidiary SilkAir into Singapore Airlines including its 17 Boeing 737-800s and six grounded MAX 8s.

SilkAir is currently transitioning to an all-737 fleet,

Now the first Singapore Boeing 737 MAX 8 (9V-MBN, msn 44258) has been painted by Boeing pending re-certification and delivery.

Singapore Airlines reports higher first half net profit of $206 million

 Net profit for the second quarter rose 68 per cent to $94 million
 Strong passenger traffic growth continues to support operating performance
 Cargo demand remains weak amid trade uncertainties
 Vistara accelerates expansion and commences international operations
GROUP FINANCIAL PERFORMANCE First Half 2019/20

The SIA Group achieved a net profit of $206 million in the first half of the financial year, $10 million (+5.1%) higher than last year.

Revenue rose $418 million (+5.3%), primarily from strong growth in passenger flown revenue, partially offset by a reduction in cargo flown revenue, while higher expenditure (+$431 million or 5.8%) reflected enlarged operations. Accordingly, operating profit for the Group was $413 million, down $13 million or 3.1% compared to the same period last year.

The Group recorded a reduction in share of losses from associated companies (+$36 million), mostly from Virgin Australia, and a higher share of profits from joint venture companies (+$19 million). These were offset by increased net finance charges (-$54 million) due to the recognition of interest expense arising from lease liabilities following the adoption of IFRS 16 Leases and additional financing for fleet renewal and expansion.

SilkAir continues to be adversely affected by the global grounding of the Boeing 737 MAX 8 aircraft, clocking an operating deficit of $19 million for the period.

Notwithstanding a reduction in capacity (-1.1%) from route transfers to Scoot and the withdrawal of the 737 MAX 8s from service, the carrier achieved passenger flown revenue growth of $4 million (+0.9%). Passenger load factor rose on the back of a 2.8% increase in traffic, driving a 1.2% improvement in RASK. However, this was negated by lower non-scheduled services revenue and incidental revenue, leading to a $6 million decline in operating revenue. Expenditure was up $10 million, partially attributable to 737 MAX 8 related costs, along with higher net fuel cost.

Total revenue for Scoot improved $7 million, driven by passenger flown revenue growth of $29 million as capacity expansion (+5.6%) was matched by higher passenger traffic (+5.8%). However, passenger revenue improvements were tempered by weaker RASK (-2.1%) on lower yields, declines in cargo revenue (-$4 million or 13.0%) and other operating revenue (-$18 million). Expenditure rose $74 million (+8.5%), mainly a result of higher depreciation from a larger fleet. In addition, Scoot continued to proactively reduce aircraft utilisation during the period to improve operational resilience. As a result, the carrier recorded an operating loss of $77 million, a deterioration of $67 million year-on-year.

Second Quarter 2019/20

Group net profit for the second quarter rose $38 million (+67.9%) to $94 million, mainly attributable to improvement in share of results from associates and joint ventures (+$78 million), partially offset by higher net finance charges (-$28 million) for the quarter.

Operating profit for the second quarter contracted $20 million (-8.6%) to $213 million, as expenditure increased $180 million (+4.7%), mainly from capacity injection, outweighing revenue growth of $160 million (+3.9%). Passenger revenue grew $244 million (+7.5%), while cargo revenue declined $93 million (-16.3%). Ex-fuel cost rose $160 million (+6.0%), following a 6.2% increase in capacity, while net fuel costs were $20 million (+1.7%) higher.

ROUTE DEVELOPMENT

During the quarter, the Parent Airline Company began operations of its inaugural Seattle services on 3 September 2019, its fourth non-stop service to the US, following the successful launch of Newark flights a year ago. In addition, Busan services launched by SilkAir in May, were taken over by SIA from 28 October 2019, boosting seat capacity to cater to growing demand. Seasonal services to Sapporo will also be operated from 30 November 2019 to 6 January 2020. As at 30 September 2019, SIA served 65 destinations, including Singapore.

SilkAir continues to see network changes as part of the planned merger with SIA, completing the transfer of Chiang Mai, Coimbatore and Visakhapatnam operations to Scoot in October. It is also on track to transfer Kota Kinabalu in December 2019, subject to regulatory approvals. Conversely, SilkAir took over Kochi services from Scoot from 27 October 2019, adding four more services to its existing 10 non-stop flights a week. As at 30 September 2019, SilkAir served 43 destinations, including Singapore.

Following the commencement of Fuzhou and Kota Bharu services in July 2019, Scoot added two new destinations in India, Coimbatore and Visakhapatnam, to its network from 27 October 2019. Scoot also suspended services to Quanzhou and Male, along with adjusting Harbin flight frequency to a Northern Winter (October to March) only seasonal service, to better match demand and capacity. Seasonal frequency additions will also be made for Melbourne, Perth, Phuket and Sydney during the Northern Winter peak period. Scoot ended the quarter with 67 destinations, including Singapore.

Overall, the portfolio of airlines in the Group served 137 passenger destinations in 37 countries and territories, including Singapore, as at 30 September 2019.

Following the launch of Vistara’s first international route, to Singapore in August 2019, SIA and SilkAir signed an agreement with Vistara to expand codesharing to international destinations, subject to regulatory approvals. Vistara increased its fleet from 22 to 32 aircraft during the first half of the financial year, and commenced international operations to Singapore, Dubai and Bangkok. Vistara is set to continue rapid fleet growth in the second half as it takes delivery of new A320neo and A321neo aircraft, and inducts its first two widebody aircraft (787-9). As a result, it will almost double its fleet size during the financial year. This will allow Vistara to quickly increase its domestic and international networks and, importantly, to commence medium to long haul international operations in 2020.

OUTLOOK

Passenger bookings in the coming months are expected to be stronger year-on-year, with yields supported by premium cabin traffic. However, headwinds persist in the form of intensifying competition in key operating markets, as well as an uncertain global economic outlook. Cargo demand is likely to remain weaker year-on- year, despite the seasonal peak, amid ongoing trade tensions and a manufacturing slowdown in key export economies.

Fuel prices are expected to remain volatile, as a result of geopolitical and economic risks. For the second half of the financial year, the Group has hedged 75% of its fuel requirements in MOPS and 3% in Brent at weighted average prices of USD76 and USD54 per barrel respectively [Note 2]. The Group will continue to enter into longer-dated hedges extending to FY2024/25.

As it enters the final lap of its three-year Transformation programme, the SIA Group remains committed to enhancing customer experience, improving operational efficiency and boosting revenue by strengthening digital capabilities. The recent expansion of the KrisConnect programme is one significant milestone. Utilising technology enablers such as NDC (New Distribution Capability), and APIs (Application Program Interface), KrisConnect facilitates integration and exchange of content between the Group and its partners, enabling customers to access personalised offerings across more distribution channels in addition to traditional owned channels.

KrisShop, the airline’s flagship travel retailer, has been restructured to become a premium omni-channel e-commerce retailer. It will continue to expand its range of products and services through its themed concept stores and official brand stores on the new website. Optimised by advanced technological and logistics capabilities, KrisShop has introduced multiple consumer-centric initiatives for convenient payment, pre-order and delivery services. Additionally, the new SIA mobile app, designed for faster performance and improved usability to give customers a seamless and more personalised experience, was launched in August 2019. These initiatives are testament to the Group’s aggressive digital transformation efforts.