Scoot (Singapore) has once again revised its inaugural Boeing 787-9 service. The airline will now introduce the new type on February 5 between Singapore and Perth followed by Singapore – Hong Kong the following day pending the first delivery from Boeing (the pictured 9V-OJA) this coming week. The company is planning to replace its six Boeing 777-200 ERs with the new 787s by September.
Copyright Photo: Joe G. Walker/AirlinersGallery.com.ย The first Scoot 787-9, registered as 9V-OJA (msn 37112), approaches the runway at Paine Field on January 19. The new aircraft is named “Dream Start”. It has been performing crew training flights during January..
Video: The first Scoot 787-9 performs high speed tests at Paine Field near Everett.
QANTAS Airwaysโ (Sydney) first upgraded international Airbus A330 cabin was introduced on January 16 on the Melbourne-Singapore route.
Passengers on flight QF 35 from Melbourne to Singapore were the first QANTAS customers to fly on the reconfigured international aircraft (see video below). It follows the introduction of the first domestic Airbus A330 last month, now operating on east-west services and key domestic routes.
The new A330 experience offers lie-flat Business Suites, designed in collaboration with Marc Newson, with a unique feature that allows customers to recline in their seat from take-off through to landing. A next-generation model of the award-winning Recaro seat has been introduced in Economy, and customers in all cabins will enjoy the latest inflight entertainment technology.
More than half of QANTASโ 28 A330 aircraft are expected to be refurbished by the end of December 2015, with the project to be completed by the end of 2016.
Customers in Economy will enjoy QANTASโ new inflight dining experience, launched on Singapore flights earlier this week, offering more choice, larger meals and improved service.
In other news,ย QANTAS has welcomed Oroton onboard as the latest designer brand to create the airlineโs coveted Business amenity kit (above).
The limited edition Business Sleep Collection amenity kit features a signature Oroton styled bag paired with exclusive ASPAR products by Aurora Spa.
The unisex amenity kit has been designed to hold QANTASโ signature Business pyjamas, eye mask, socks, toothbrush, toothpaste and earplugs comfortably inside.
QANTAS International Head of Customer Experience & Creative Development Kylie Morris said the limited edition Oroton amenity kit was timed to celebrate the inaugural flight of the upgraded international A330 from Singapore to Melbourne.
The QANTAS Business Sleep Collection will be offered to customers travelling in the Business cabin from today on select Qantas international flights from Asia operated by the refurbished A330 aircraft.
Copyright Photo: John Adlard/AirlinersGallery.com (all others by QANTAS). Airbus A330-201 VH-EBA (msn 508) in the old CityFlyer markings arrives at the Sydney hub.
Video: QANTAS. Aย sneak peek of QF’s domestic A330 aircraft which gets reconfigured with its lie-flat Business Suites, designed in collaboration with Marc Newson, and next generation model of the award-winning Recaro seat in Economy.
Scoot (Singapore) is now planning to introduce the new Boeing 787-9 on February 1 to both Hong Kong and Perth from Singapore. The inaugural has been delayed twice due to delivery delays at Boeing.
Copyright Photo: Royal S. King/AirlinersGallery.com. The first 787, Boeing 787-9 Dreamliner 9V-OJA (msn 37112), is pictured yesterday undergoing pre-delivery testing at Paine Field near Everett.
Scoot (Singapore) has announced it will start a new route on November 1, 2015 from Singapore to Melbourne, Australia. The new route will be operated five days a week with the new Boeing 787-9s.
Scoot is now planning to inaugurate Boeing 787-9 Dreamliner service on January 16, 2015 on the Singapore-Perth route.
Photo: Boeing. The first Scoot Boeing 787-9 is the pictured 9V-OJA (msn 37112) due to imminent delivery. The 787-9s will replace the existing Boeing 777-200 ERs.
On October 24, 2012 it was announcedย Scoot, the long-haul low-cost subsidiary of Singapore Airlines, agreed to acquire twenty Boeing 787 aircraft for delivery commencing in late 2014.
The twenty fuel-efficient aircraft will be used to replace Scootโs Boeing 777-200 fleet and facilitate the airlineโs ongoing expansion.
Scootโs 787s will sport a brand new interior as well as the 787โs enlarged windows and unique interior climatic system for a superior level of comfort.
The 20 aircraft were originally ordered by parent company Singapore Airlines. Selection of engines to power the fleet will be made at a later date.
NokScoot (Bangkok-Don Mueang) has unveiled its first painted Boeing 777-200 as it prepares for its first flight.
The new airline, a joint venture between Nok Air and Scoot, has also unveiled its new uniforms (below) with this announcement and photo:
“NokScoot proudly introduces its cabin crew uniform. The minimalist design, applying vivid yellow and neat black colors, allows our cabin crew to perform duties comfortably. It also represents the airline in our own fun and cheerful way.”
Top Copyright Photo Kok Chwee K.C. Sim/AirlinersGallery.com (all others by NokScoot). Formerly operated by Singapore Airlines as 9V-SRF, Boeing 777-212 ER HS-XBA (msn 28521) departs Singapore on November 23 on its delivery flight to Bangkok (Don Mueang).
Video: A new airline has to get noticed, here is one way: The Kiss, NokScoot’s first TV commercial:
Jet Airways (Mumbai) had a Mumbai-Dubai flight delayed by one and a half hours after the flight crew got into a heated argument in the cockpit before departure. The first officer left his position in the cockpit alleging the captain “manhandled” him according to this report by Mid-Day. The flight was delayed as managers attempted to find a replacement first officer.
Singapore Airlines Group (Singapore Airlines, Scoot, SilkAir and Singapore Airlines Cargo) (Singapore) reported itsย net profit in the first half was down by $157 million (a decline of 55.5%) year-on- year to S$126 million ($97.7 million US).
The group issued this full statement:
GROUP FINANCIAL PERFORMANCE
First Half 2014-15
The Group earned an operating profit of $171 million in the first half of the 2014-15 financial year, an improvement of $2 million (+1.2%) over the same period last year.
Group revenue was down $154 million (-2.0%) to $7,587 million, mainly due to lower incidental revenue stemming from reduced compensation pertaining to changes in aircraft delivery slots [see Note 2], and lower income from the lease of aircraft, due to the expiry of leases to Royal Brunei Airlines. Passenger revenue was lower year-on-year (-0.4%), notwithstanding a 1.4% increase in traffic, as a result of yield declines (-1.8%) amid the competitive operating environment and depreciating revenue-generating currencies, led by the Australian Dollar and Japanese Yen. Cargo revenue fell 1.6%, driven by a capacity cut (-3.8%), though this was partially compensated for by better yields and higher load factor.
Group expenditure at $7,416 million declined $156 million (-2.1%) over the previous financial year. Fuel costs after hedging fell $107 million, attributable to lower volume uplifted (-3.2%), the weaker US Dollar against the Singapore Dollar, and a 0.4% decline in jet fuel price after hedging.
Note 1: The SIA Groupโs unaudited financial results for the half year and second quarter ended 30 September 2014 were announced on 6 November 2014. A summary of the financial and operating statistics is shown in Annex A. (All monetary figures are in Singapore Dollars. The Company refers to Singapore Airlines, the Parent Airline Company. The Group comprises the Company and its subsidiary, joint venture and associated companies).
Note 2: The settlement agreement was reached in Q1 FY1314 and $92 million was recognised in the first half of FY1314, of which $59 million pertained to change in prior years. $34 million compensation was recognised in the first half of FY2014-15.
Group net profit in the first half was down $157 million (-55.5%) year-on- year to $126 million. The share of results of associated companies fell $154 million, largely attributable to the Groupโs share of Tiger Airwaysโ loss of $129 million, which included material charges relating to the sublease of surplus aircraft and sale of Tigerair Australia. The commencement of equity accounting for Virgin Australia from the second quarter further contributed to the weaker results (-$16 million). Exceptional items accounted for a loss of $10 million in the first half, compared to a net exceptional gain of $22 million last year [see Note 3]. These were partly offset by higher gains on disposal of aircraft, spares and spare engines (+$31 million).
The Parent Airline Companyโs operatingย against the corresponding period last year. Revenue was down $151 million (-2.4%), arising from reduced incidental revenue [see Note 2] and passenger revenue. The fall was nearly offset by a $148 million (-2.4%) reduction in expenditure, due to lower fuel costs after hedging, and stringent cost management. Unit ex-fuel cost was down 3.9% year-on-year.
SIA Engineeringโs operating profit declined $19 million (-33.9%). Total revenue fell by $4 million (-0.7%) as a result of lower airframe and component overhaul revenue, offset in part by higher fleet management revenue. Expenses rose by $15 million (+2.8%), primarily as a result of an increase in subcontract services.
SilkAir’s operating profit declined $17 million (-77.3%), as weaker yields (-5.0%) put a drag on revenue and capacity injection (+3.7%) pushed operating expenditure up.
SIA Cargoโs operating loss narrowed by $37 million from last year. With better capacity management, yields and load factor were up 1.9% and 0.2 percentage points, respectively.
Note 3: Exceptional items in the first half of FY1415 pertained to the Parent Airline Companyโs provision for settlement with plaintiffs in the Transpacific Class Action ($11 million), SIA Cargo’s additional impairment on two marked-for-sale B747-400F aircraft ($7 million), partly offset by additional gain on sale of Virgin Atlantic Limited (VAL) to Delta Air Lines, Inc. ($7 million), and partial refund of fine on appeal from the Korean Fair Trade Commission ($1 million). Exceptional items in the first half of FY1314 was $22 million, mainly pertaining to gain on sale of VAL ($339 million), partially offset by SIA Cargoโs impairment on four B747-400 aircraft removed from operation ($293 million) and SFCโs impairment loss on its assets with the closure of its Maroochydore operations ($24 million).
Second Quarter 2014-15
Group operating profit for the second quarter improved $45 million (+51.7%) to $132 million.
Group revenue was almost flat at $3,905 million. Passenger revenue increased marginally, as higher passenger carriage was largely offset by a 0.9% decline in yields. Cargo revenue was down 0.5% on the back of lower capacity (-4.1%), but was mitigated by improved yields (+2.8%).
Group expenditure declined $41 million (-1.1%) to $3,773 million. Fuel costs before hedging fell $115 million, partially offset by a loss on fuel hedging, compared to a hedging gain in the same quarter last year (+$76 million).
Group net profit was down $70 million (-43.5%) year-on-year to $91 million. This was largely attributable to weaker results from associated companies (-$138 million), partly mitigated by higher operating profit (+$45 million), and higher gains on disposal of aircraft, spares and spare engines (+$35 million).
FIRST HALF 2014-15 OPERATING PERFORMANCE
The Parent Airline Companyโs passenger carriage (in revenue passenger kilometres) increased marginally by 0.1%, while capacity (in available seat-kilometres) dipped 0.2% during the first half of the financial year. As a result, passenger load factor improved by 0.2 percentage points to 79.8%.
SilkAir recorded a 0.4 percentage-point increase in passenger load factor to 69.7%, as its 4.2% growth in traffic outpaced capacity injection of 3.7%.
SIA Cargo reduced its capacity (in capacity tonne-kilometres) by 3.8%. Airfreight carriage (in load tonne-kilometres) declined by 3.4%. Consequently, cargo load factor improved 0.2 percentage points to 62.2%.
No. 05/14 6 November 2014 Page 4 of 6
INTERIM DIVIDEND
The Company is declaring an interim dividend of 5 cents per share (tax exempt, one-tier), amounting to $59 million, for the half-year ended 30 September 2014. The interim dividend will be paid on 27 November 2014 to shareholders as of 18 November 2014.
FLEET AND ROUTE DEVELOPMENT
The Parent Airline Company took delivery of two Airbus A330-300s in the second quarter. As at September 30, 2014, the operating fleet of the Parent Airline Company comprised 105 passenger aircraft – 57 Boeing 777s, 29 Airbus A330-300s and 19 A380-800s, with an average age of 7 years.
During the quarter, SilkAir took delivery of two Boeing 737-800 aircraft, sold one Airbus A320-200 and decommissioned another A320-200 in preparation for return to lessor. As at September 30, 2014, its operating fleet comprised 26 aircraft โ 14 Airbus A320-200s, six A319-100s and six Boeing 737-800s.
There was no change to Scootโs fleet during the July-September quarter, comprising six Boeing 777-200s.
SIA Cargo operated a fleet of eight Boeing 747-400 freighters at September 30, 2014, the same as the previous quarter. It suspended freight operations to Lagos from July 29, 2014, and added services to Amsterdam, Brussels and Delhi in September to cater to seasonal demand.
In the Northern Winter season (October 26, 2014 โ March 28, 2015), the Parent Airline Company will increase capacity to Auckland with daily Airbus A380 services, replacing the smaller Boeing 777-300 ER. To cater to peak period demand, three additional weekly services will be operated to Melbourne and Sydney, and two additional weekly services will be operated to Brisbane and Christchurch, from the end of November 2014 to January 2015. In addition, three weekly services will be operated to Sapporo from December 2014 to mid-January 2015. As part of a service restructuring to the Middle East, flights to Cairo and Riyadh have been suspended from October 2014. SilkAir suspended its twice-weekly services to Solo with effect from October 26, 2014. From December 12, 2014, it will begin daily services to Denpasar. Together with the Parent Airline Company, a total of five daily trips will be served between Singapore and the city, subject to regulatory approval. This will bring the combined network of both airlines to 99 cities in 35 countries.
OUTLOOK
The operating landscape for the airline industry remains competitive and challenging, as an uncertain global economic climate and geopolitical concerns persist.
Demand is generally flat, and yields will remain under pressure amid intense competition from other airlines and promotional activities in weaker markets.
Airfreight demand has seen a moderate recovery in recent months, with demand projected to be stronger in the third quarter as a result of the traditional peak period in the lead-up to Christmas. However, overcapacity in the airfreight market is expected to continue to put pressure on yields.
While there has been a reprieve from cost pressures arising from the decline in fuel prices in recent months, there is concern that the decline reflects a slow- down in major economies in the world which could ultimately hurt travel demand.
The Group will continue to track market movements closely and make appropriate adjustments to capacity, while practising cost discipline in all business areas. With a strong balance sheet, the Group is well positioned to meet the challenges ahead.
Earnings per share for 1H 2014/2015 has declined to $0.107 from $0.24 (y/y) which represents a sharp drop of 55%. Similar for Q2 2014/205 which EPS has declined to 7.7 from 13.6 (y/y) which translates to a 76% decline.
This poor performance has been contributed by its subsidiariesโ contribution towards the SIA Groupโs operating profit where we see poor performance in SIA Engineering & SilkAir (both decline drastically by 33.9% and 77.3% respectively from 1H 2013/2014 to 1H 2014/2015.)
Going forward, SIA Group is likely to see downside pressure on its bottom-line due to intense competition from budget airline operators and economic risks such as the spread of Ebola that will hamper international travel.
Technically, SIA is still trading in a multi-year sideways configuration since Nov 2011 and in order to see a change of trend to the upside, it needs to break above the key resistance at 10.92
Malindo Air (Lion Air Group) ย (Kuala Lumpur) will launch Boeing 737 service on the very busy and competitive Kaula Lumpur-Singapore route on November 3.
Copyright Photo: Michael B. Ing/AirlinersGallery.com. Boeing 737-9GP ER 9M-LNH (msn 38732) departs from Denpasar on Bali, Indonesia.
Spring Airlines (Shanghai) has signed an agreement with Airbus for Sharklet retrofit of its A320 aircraft in operation to become the first Chinese airline to perform retrofit of the latest fuel saving device.
Spring Airlines took delivery of its first A320 with Sharklets in September 2013. Since then the operator has been evaluating the effect of Sharklets on the operational performance of its fleet of six Sharklet-equipped A320s. Based on the proven operational advantage observed from more than 8500 accumulated flight hours, Spring Airlines has decided to select Sharklets for all its new deliveries and now has decided to expand the option to its in-service fleet.
Sharklets are made from light-weight composites and are 2.4 meters tall. They are an option on new-build A320 Family aircraft and standard on all members of the new A320neo family. They offer operators up to four per cent fuel burn reduction on longer range sectors and provide the flexibility of either adding an additional 100 nautical miles range or increased payload capability of up to 450 kilograms.
Following the success of line-fit Sharklets, Airbus, via its Upgrade Services business unit, entered service with the retrofit program in February 2013 for all A320 Family aircraft equipped with the latest standard wings.
Copyright Photo: Michael B. Ing/AirlinersGallery.com. Spring Airlines’ Airbus A320-214 B-9965 (msn 5778) arrives in Singapore with Sharklets.
Cebu Pacific Air (Manila) now flies three nonstop weekly flights between Manila and Riyadh. The inaugural flight for Cebu Pacificโs Manila-Riyadh service departed at 5:05 pm (1705) on October 3. Cebu Pacific is the only low-cost carrier flying between the Philippines and the Kingdom of Saudi Arabia.
โCebu Pacificโs flights from Manila to Riyadh departs at 5:05 pm (Manila time) and arrives in Riyadh at 11:35 pm (Riyadh time) every Wednesday, Friday, and Sunday. Flights from Riyadh to Manila departs at 12:45 am (Riyadh time) and arrive in Manila at 3:40 pm (Manila time) every Monday, Thursday and Saturday.
The new route utilizes the pictured brand-new Airbus A330-300 aircraft with a configuration of 436 all-economy class seats.
Meanwhile, Cebu Pacific will fly nonstop to and from Dammam three days a week, starting on October 4. Aside from Dubai, Riyadh, and Kuwait, Cebu Pacificโs long-haul division also operates nonstop flights between Manila and Sydney.
Cebu Pacificโs 51-strong fleet is comprised of 10 Airbus A319s, 28 Airbus A320s, 5 Airbus A330s and 8 ATR 72 500 aircraft. It is one of the most modern aircraft fleets in the world. Between 2014 and 2021, Cebu Pacific will take delivery of 11 more brand-new Airbus A320, 30 Airbus A321neo, and one Airbus A330 aircraft.
Copyright Photo: Michael B. Ing/AirlinersGallery.com. Airbus A330-343 RP-C3342 (msn 1445) arrives in Singapore.
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