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SIA revived
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Thiamm
Veteran |
24-Sep-2020 13:36
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probably will wait at $2 bah .... |
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ken7951
Member |
24-Sep-2020 13:33
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can sia go below $3 | ||||
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uiop1223
Supreme |
24-Sep-2020 13:06
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Crash to $2. Swee! | ||||
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desmodeus
Veteran |
24-Sep-2020 12:34
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With only less than 20% capacity utilisation, can' t blame them for this desperate FTNW offer. So many pilot mouths to feed, oil options expiring every month, and with the spectre of a developing second wave, cash is running out soon. Guess what is the next rights issue priced at? $3 is history | ||||
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uiop1223
Supreme |
24-Sep-2020 08:41
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Well.. Another mcbs is very likely. Look at capitaland share price. If never recovered back to after rights issue. It range from $2.8 to $4. Note that CapitaLand kept reporting profits for past 10yrs. Capitaland never reported billions of losses
SIA most probably same or worst fate for next 10yrs.
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vicloo
Supreme |
24-Sep-2020 08:26
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👍 👍 👍
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Goldfinger
Supreme |
24-Sep-2020 08:05
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Great positive spirit! Cheering you on!!! By then, I hope to be early retired in Florence and Tuscany.
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Goldfinger
Supreme |
24-Sep-2020 07:38
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SIA pilots, cabin crew and management are too proud and arrogant boasting of their jet setting lifestyle and free upgrades when times were good. They must now humble themselves and have their pay and benefits further slashed or go find a new job in Africa or India.
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incirent
Senior |
24-Sep-2020 03:00
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@Joelton, the nighmare of SIA does not end there. It still has investment with the Tata brothers. I was foolish enough to keep my SIA shares till it dropped to 6.09 just before the rights issue. I bought it @$9.50 thus involved a heavy loss. On hind sight, If I did not sell the shares then, it will be more painful today. CEO Goh has been in the position too long and thus become too complacent/arrogant like other SIA empoyees. It is time for him to quit so that new ideas may save SIA from his plunders. | ||||
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backdoorbandit
Member |
23-Sep-2020 23:26
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I bought 10 lots at about 4 plus so am sitting on decent losses, i dun really care. I plan to look at the share price probably 31st Dec 2022 and hopefully by then would be up 25K in profits...at which time am more than happy to buy all of you a round at Harrys @ Robertson Quay on 31st Dec 2022, cos by then i do hope no more masks, social distancing and pubs can actually function like pubs again. | ||||
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Joelton
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23-Sep-2020 22:13
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Weak travel demand aside, SIA has major problems to fix
THE pain being felt by the aviation sector is global, and Singapore Airlines (SIA) and its top brass should not be unfairly penalised for factors that are beyond their control. But some of the hits that SIA has taken could have been reduced or even avoided.
Take, for instance, SIA' s investments in foreign airlines NokScoot Airlines and Virgin Australia, which have filed for liquidation and voluntary administration, respectively.
Thailand-based low-cost carrier NokScoot and Brisbane-based full-service airline Virgin Australia had been struggling with turning a profit even before the pandemic. Consequently, they were among the earliest casualties of the pandemic.
NokScoot was a 49 per cent-owned associated company of Scoot Tigerair, an SIA subsidiary. Its liquidation led SIA to record a charge of S$127 million for the first quarter ended June 30. This came after SIA had written off the carrying value of its investment in NokScoot in previous financial periods.
NokScoot was established in Thailand in 2014 with an initial total investment of S$78 million as a joint venture medium- to long-haul low cost airline. Since inception, it has never been able to deliver a full-year profit. SIA had injected an additional S$10.2 million in capital in the fiscal year 2020 and S$9.9 million in FY2019.
Much of NokScoot' s losses were attributed to the difficulties in growing the network as well as the intense competitive environment, Scoot said in a media statement on NokScoot' s liquidation. It did not see a path to recovery and sustainable growth for NokScoot, amid a difficult operating environment brought on by the novel coronavirus pandemic.
SIA similarly had to write off its 20 per cent stake in Virgin Australia, and it recognised an impairment loss of S$344 million for the year ended March.
SIA' s expansion through foreign joint ventures was part of a multi-hub strategy to set up hubs outside of Singapore and to create new engines of growth in key markets.
But Citi analyst Kaseedit Choonnawat noted the national carrier' s poor track record in such foreign investments, and expressed doubts about the prudence of its intention to utilise a portion of the recent S$8.8 billion raised to " capture potential opportunities" thrown up by the pandemic.
NokScoot and Virgin Australia were not the first investments to go bad for SIA, with Virgin Atlantic and Air New Zealand setting precedents.
SIA acquired a 49 per cent stake in Virgin Atlantic for £ 600 million (then S$1.6 billion) in 2000 but was only paid US$360 million (then S$440 million) when it offloaded the stake to United States carrier Delta Air in 2012. SIA had at the time said its investment had not performed to expectations and the synergies originally hoped for did not materialise.
The company also lost most of the more than NZ$400 million it invested in Air New Zealand following the near collapse and subsequent government-led rescue of the Kiwi carrier in the early 2000s.
Certainly, international investments carry a great deal of risk. But as SIA reviews its fleet and network plans to prepare for a very different aviation landscape post-pandemic, it is hoped that the company' s investment track record may be an aspect for consideration.
Fuel hedging losses
Meanwhile, SIA is also now drawing criticism over fuel hedging losses that The Business Times had written about in this column some time back.
A shareholder has taken to Facebook urging SIA chief executive Goh Choon Phong to step down and take responsibility for these losses.
Lim Seng Hoo said in his Facebook posts that he had earlier flagged fuel hedging losses to the airline and appealed to it to stop its hedging practice, but to no avail.
SIA racked up S$71 million in fuel hedging losses for its quarter to June, and also recognised S$464 million in mark-to-market losses from surplus hedges that arose because of capacity cuts resulting from the pandemic.
In the quarter ended March, it booked S$198 million in fuel hedging losses and S$710 million in mark-to-market losses.
SIA has warned of further fuel hedging losses ahead, and has recognised S$2.6 billion in mark-to-market losses in its reserves for FY2021 for contracts maturing between FY2022 and FY2025.
Hedging aims to reduce the risk of losing money on shares, bonds or other securities that one owns. But SIA is now losing big on its hedges.
At the time it entered into these hedges, oil prices were admittedly rising fast. But some market watchers have suggested SIA went overboard by locking in its jet fuel costs five years into the future - surpassing global airlines in the number of months forward that it hedged its fuel requirements.
As controversial as its fuel hedging strategy was its massive capital expenditure (capex) programme, which burned through more than the cash flow generated from its operations. Consequently, its free cash flow was in negative territory for the last four financial years - with deficits ranging from S$1.25 billion to S$2.72 billion. Its long-term borrowings ballooned from S$1.53 billion to S$7.16 billion.
UOB Kay Hian analyst K Ajith suggested in a May report that SIA' s original plans for S$23.5 billion in capex over the next five years were " excessive and detrimental to the balance sheet, even pre-Covid-19" .
SIA has since announced it will lower capex this financial year by at least 12 per cent, compared with its previous plan, with the final reduction to be determined by talks with planemakers over delivery delays.
But even after travel demand returns to its pre-Covid levels, SIA may need to be less ambitious with its fleet renewal plan.
SIA' s strategy over the last few years left little margin for error, and the company' s various stakeholders are now paying the price.
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uiop1223
Supreme |
23-Sep-2020 17:44
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So? The companies now know tele meeting is more efficient and less costly. Can save on airflights, hotels and meal allw. Even after covid settles down, big chunk of business related travels will drop and they are mostly business class seats. Seldom do MNCs use budget airlines for biz travel.
Will there be enough tourists to fill up biz class seats? I know people willing to pay for long hual flights to US, europe. But how about flights that is less than 6hrs? Most want to travel budget. Keep costs to minimum
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Trader130
Supreme |
23-Sep-2020 17:03
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anyway yet report out let' s see whether got earning not compare to last 2 Quarters.. if yes , everyone get ready | ||||
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central
Senior |
23-Sep-2020 16:13
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https://www.businesstimes.com.sg/transport/airlines-call-for-covid-19-tests-before-all-international-flights | ||||
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SAVIORFOREVER
Supreme |
23-Sep-2020 15:58
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There are many bottoms to come.
Trade with bottoms up and DYODD
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Skwf69
Member |
23-Sep-2020 14:12
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With the continued reopening of Singapore, this counter is going to rebound soon | ||||
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SAVIORFOREVER
Supreme |
23-Sep-2020 08:58
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Previous year data?
Trade with prudence and DYODD
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Trader130
Supreme |
23-Sep-2020 08:48
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PETA Wants Only Vegan Meals On Singapore Airlines Flights To Nowhere
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Trader130
Supreme |
23-Sep-2020 08:03
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The list of busiest international routes
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investshare
Supreme |
23-Sep-2020 07:35
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As of August, the carrier has already utilised $4.4b of the proceeds with $2.9b used for debt repayment and S$1.1b for ticket refunds and settlement of fuel hedging contracts
Furthermore, SIA has $5.5b in current trade-related liabilities?including $2b in advance bookings?and S$1.6b in derivative liabilities as at March this year. Even assuming the derivative liabilities diminish in value, UOB Kay Hian estimates that the carrier would have at least a further $6b in payables by end-March 21. SIA also had $2.7b in short-term debt as at end-FY2020 although it is believed this has been fully repaid as of August. From an operating perspective, the carrier is estimated would be burning $200m to $300m per quarter inclusive of lease payments for Q2 to Q3 2021. |
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