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I think what he meant is there is a heavenly principle (天 理 ) that humbles the proud and gives grace to the humble.
So try to be fair to everyone, in matters of compensation and profit.
Otherwise, there is still a Higher Being that arbitrates. And He does in a dramatic fashion.
So try to be fair to everyone, in matters of compensation and profit.
Otherwise, there is still a Higher Being that arbitrates. And He does in a dramatic fashion.
112233 ( Date: 14-Jun-2024 10:38) Posted:
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so when you' re down and under and everyone is hoping you fail ... Force of nature will also take care of you ?
Fiat500 ( Date: 13-Jun-2024 17:42) Posted:
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Fuel surcharges should decrease making air travel cheaper!
Book your tickets soon... ...
Book your tickets soon... ...
coppermist ( Date: 14-Jun-2024 00:19) Posted:
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Oil prices could drop to $60 per barrel in 2025 as surplus looms, Citi says
The world is facing a major surplus of oil in the coming year that could push the price of global benchmark Brent down to $60 per barrel, according to commodity analysts at Citi.
Oil supply will outpace demand next year as production grows in North America, Brazil and Guyana while consumption softens due to energy efficiency gains and electric vehicle adoptions, the analysts said. At the same time, OPEC+ is planning to start rolling barrels back onto the market.
Brent prices could fall below $50 per barrel by the end of next year in the bank&rsquo s most bearish scenario.
&mdash Spencer Kimball
Somehow if you're riding too high n mighty n above others..Force of nature will take care of you!
Sin_Cos_Tan ( Date: 13-Jun-2024 17:11) Posted:
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Aviation lawyer who said she was representing passengers injured in SQ321, noted that in the wake of accidents,
airlines and their insurers would look to resolve legal proceedings " for the minimum amount of compensation" .
" With any personal injury claim against a big company, there will be insurers involved, so the legal road is always going to be very long, very costly and very uncertain," he said.
He said passengers would have to document their physical recovery " every step of the way" to prove in court that they have grounds for their claims.
So in some cases, it would be advisable to accept SIA' s compensation offer.
" For those who don&rsquo t have the means to go through the hassle (of legal proceedings), they can get something pretty quickly, and it' s a form of closure."
airlines and their insurers would look to resolve legal proceedings " for the minimum amount of compensation" .
" With any personal injury claim against a big company, there will be insurers involved, so the legal road is always going to be very long, very costly and very uncertain," he said.
He said passengers would have to document their physical recovery " every step of the way" to prove in court that they have grounds for their claims.
So in some cases, it would be advisable to accept SIA' s compensation offer.
" For those who don&rsquo t have the means to go through the hassle (of legal proceedings), they can get something pretty quickly, and it' s a form of closure."
Oh yes, you are right. It's 38cts this coming dividend. Some websites posted full year dividends of 38cts,that's where I got the info wrongly. With 38cts this coming dividend than It's pretty good yield barring any serious consequences from upcoming lawsuits from the recent incident.
kt3152 ( Date: 13-Jun-2024 16:14) Posted:
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SIA pays divideds twice a year, this coming one is 38cents, Nov will be another one but I' m sure it' s more than 10cents, might even be 20c if profits continue to improve, plus capital gains, low risks now, I' m aiming for 10$ in coming years, keep in pocket like savings bonds, barring another big crisis of course.
Fiat500 ( Date: 13-Jun-2024 15:52) Posted:
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Thats not correct. The final dividend is 38c not 28c....total for the year is 48c.....
Fiat500 ( Date: 13-Jun-2024 15:52) Posted:
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This coming dividend is only 28cts, 10cts was paid out already. Anyway imo it's better to avoid this stock with the recent turbulence incident..There will be endless lawsuits after lawsuits! Lawyers will be sharpening their knives to maximise their claims..Insurance might not cover everything.
eric998 ( Date: 13-Jun-2024 07:10) Posted:
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SIA ends an interesting chapter of its history with redemption of its last remaining MCBs
Among the lessons for market watchers is that investors in the local market are not as apathetic as they are often made out to be
THIS month, on Jun 24, Singapore Airlines (SIA) will redeem the last of the mandatory convertible bonds (MCBs) it issued to ride through the pandemic.
SIA on May 15 said that holders of these remaining MCBs will receive just over S$1.74 billion &ndash 112.616 per cent of the principal amount they stumped up in 2021.
The full gross proceeds SIA received from the issue of these MCBs of S$1.55 billion will be used to fund the redemption.
This will mark the end of an interesting chapter of SIA&rsquo s history that holds a number of lessons for market watchers.
Among them is that a deep-pocketed and supportive controlling shareholder can be an enormous competitive advantage in the midst of a crisis, and that investors in the local market are not as apathetic as they are often made out to be.
At the onset of the pandemic in 2020, SIA unveiled plans to tap its shareholders for as much as S$15 billion in order to sustain itself. Nearly two-thirds of this amount came from the issue of MCBs.
Flush with long-term capital during the pandemic, SIA not only survived but was able to quickly reinstate its services as soon as international borders reopened and revenge travellers took to the skies.
Benefiting from elevated air fares, SIA didn&rsquo t just swing back to the black during its financial year ended Mar 31, 2023 &ndash it achieved record revenue of S$17.8 billion, and its highest-ever net profit of S$2.16 billion.
Last month, the group said that its revenue for FY2024 increased a further 7 per cent to a new record of S$19 billion. Its net profit increased 24 per cent, to a new high of S$2.67 billion.
SIA also said that it will pay a total dividend of S$0.48 per share for FY2024, up from S$0.38 per share for FY2023.
It is worth noting that SIA achieved these blowout numbers even as its employees received bumper bonuses. For FY2024, it reportedly paid eligible employees a profit-sharing bonus of 7.94 months.
For FY2023, its employees were reportedly given a profit-sharing bonus of 6.65 months and a maximum ex-gratia bonus of 1.5 months.
Exciting pandemic-era stock
This sharp turnaround in profitability &ndash made possible by the huge amount of capital SIA raised &ndash was well-anticipated by investors in the local market.
SIA&rsquo s shares came off their lows in late 2020 and climbed strongly over the next three years.
Even the prospect of having to make hefty payouts to passengers injured last month when Flight SQ321 encountered &ldquo sudden extreme turbulence&rdquo has failed to dent its share price.
Looking back now, SIA has arguably been one of the most exciting stocks of the pandemic era. Since the beginning of 2020, the company&rsquo s shares have delivered a total return of 13.6 per cent.
This lagged the Straits Times Index&rsquo s (STI) total return of 24.4 per cent, but it was enough to make SIA the ninth best-performing stock within the index.
Among the STI stocks with returns that ranked ahead of SIA were Sembcorp Industries and Keppel Corp, which benefited from big value-unlocking initiatives, and the three local banks &ndash DBS, OCBC and UOB &ndash which enjoyed a surge in net interest income as a result of higher interest rates following the pandemic.
SIA&rsquo s performance through the pandemic was also remarkable given the usually tough economics of the airline business.
During the five years leading up to the beginning of 2020, SIA&rsquo s shares delivered a total return of minus 8.8 per cent &ndash which made it the fifth worst-performing component of the STI during the period.
Backing from Temasek
In June last year, as bullish speculation pushed SIA&rsquo s shares above the S$7 mark, news broke that Temasek had made arrangements to trim its controlling stake in the group.
A subsequent filing showed a unit of Temasek had sold 55 million SIA shares on Jul 4, 2023, for nearly S$394.6 million, or more than S$7.17 per share. The sale reduced Temasek&rsquo s stake in SIA from 55.42 per cent to 53.57 per cent.
In hindsight, this was a prescient move by SIA&rsquo s controlling shareholder &ndash the stock subsequently rolled back below the S$7 mark.
SIA had tapped Temasek and its other shareholders for a total of S$15 billion during the pandemic &ndash S$5.3 billion through the issue of 1.78 billion new shares, and S$9.7 billion through the issue of the MCBs.
The MCBs were structured to support the airline group through a potentially long period of restrictions on international travel. They were zero-coupon instruments and only redeemable at the option of SIA, at prices calculated to deliver an annual yield-to-call of 4 to 6 per cent per annum. They were also treated as equity in SIA&rsquo s books, but mandatorily convertible into new shares only in June 2030.
These features made the MCBs rather unattractive to many investors, though. While the new shares issued by SIA &ndash at a deeply discounted price of S$3 per share &ndash were fully taken up, the MCBs were widely shunned.
Temasek ended up having to mop up more than 95 per cent of these instruments. This left the investor with greater exposure to SIA&rsquo s MCBs than its shares.
As SIA now prepares to redeem its last remaining MCBs, the group appears to be in good financial shape. As at Mar 31, it had total shareholders&rsquo equity of S$16.3 billion, total debt balances of S$13.4 billion, and total cash balances of S$11.3 billion. SIA generated net cash of S$5.1 billion from its operations for FY2024.
Looking ahead, it seems more than likely that SIA&rsquo s profitability will gradually wane &ndash as the post-pandemic surge in demand for travel eases and other carriers add capacity. The big question is whether this softening outlook is adequately reflected in its share price.
SIA closed on Wednesday (Jun 12) at S$6.73, which puts its market capitalisation at just over S$20 billion &ndash or about 7.5 times the group&rsquo s earnings for FY2024.
What are the findings after their investigations ?
MrBear12 ( Date: 12-Jun-2024 16:42) Posted:
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Price is good enough for entry for dividend play, dividend 38c plus usually another round of dividend end of year hopefully 20c or more, will give 10% profits, not bad. Personal thoughts. DYODD.
Protracted law suits can be very draining. Time consuming also. Remember silk air, Taiwan SQ flight?
Agree. I see the compensations as a form of goodwill rather than penalty. Of course, there will be those wanting very hard to see the downfall of SIA.
pasttime ( Date: 12-Jun-2024 12:15) Posted:
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Sudden Air turbulence is not within any body control. Not put safety belt when safety belt sign on means people has to carry some weight for their decision. Sia should go to settle without much hoo ha to save themselves for the bad image. News, forum talk talk is more impact then real. Managed it. Don't let those with motives to cause more hurt.
Compensation is much more than 2M because of the possible legal battles and additional claims from the seriously injured.
There was an article that estimated airline accident claims on this thread a day or two after the incident.
It is more in the range of 8-9 figures.
There was an article that estimated airline accident claims on this thread a day or two after the incident.
It is more in the range of 8-9 figures.
Sin_Cos_Tan ( Date: 12-Jun-2024 10:38) Posted:
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BANGKOK, May 21 (Reuters) - Some tallies of the injured out of the 211 passengers and 18 crew differed.
The airline said 18 were hospitalised and 12 being treated in hospitals. Samitivej Hospital said it was treating 71 passengers.
229x 1,000= $229,000
71X50%=35.5x13,500=479,250
71X50%=35.5x33,750=1,198,125
Total compensation :229k+479.25k+1,198.125k=$1,906k
Worst case scenario, if insurance not cover ...
FY 2023/24 Net profit : $2,675M
Assume revenue growth rate = 0
$1.906M/2,675M = 0.07% of Net profit.... peanut only!!
The airline said 18 were hospitalised and 12 being treated in hospitals. Samitivej Hospital said it was treating 71 passengers.
229x 1,000= $229,000
71X50%=35.5x13,500=479,250
71X50%=35.5x33,750=1,198,125
Total compensation :229k+479.25k+1,198.125k=$1,906k
Worst case scenario, if insurance not cover ...
FY 2023/24 Net profit : $2,675M
Assume revenue growth rate = 0
$1.906M/2,675M = 0.07% of Net profit.... peanut only!!
Sin_Cos_Tan ( Date: 24-May-2024 14:39) Posted:
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Despite SIA&rsquo s multiple strengths, shareholders need to brace for turbulence
Much can go wrong, given the global nature of the group&rsquo s business and the many staff, suppliers and customers with which it deals
THE Covid-19 pandemic hit many businesses hard, with airlines among the worst affected. National carrier Singapore Airlines&rsquo (SIA) business nosedived when international borders were largely sealed off.
Fast-forward post-pandemic and airlines have recovered well, with the lust for travel leading to a surge in demand and airfares.
Multi-award-winning SIA and low-cost carrier Scoot, which are part of listed SIA Group : C6L -0.44%, have gained from air travel&rsquo s recovery. Both carriers achieved record passenger load factors for the financial year ended Mar 31, 2024.
For FY2024, the group posted a 24 per cent year-on-year increase in net profit to a record high of S$2.7 billion, as revenue climbed 7 per cent to S$19 billion. Return on equity holders&rsquo funds hit 14.8 per cent in FY2024, compared with 10.2 per cent in the previous financial year. SIA Group expects to reach pre-pandemic passenger capacity levels in the current financial year.
Including the proposed final dividend, dividend per share (DPS) for FY2024 is S$0.48, up from S$0.38 for the previous financial year. Based on DPS of S$0.48, the dividend yield is more than 7 per cent.
Following the group&rsquo s record earnings, the profit-sharing bonus for eligible employees was nearly eight months for FY2024.
Perhaps questions can be raised over whether the air transportation services group, which received huge government support during the pandemic, should be richly rewarding shareholders and staff because of its strong earnings.
Managing turbulence
However, shareholders and staff may not be basking in the group&rsquo s robust performance.
Last month, SIA Flight SQ 321 from Heathrow Airport in London to Singapore encountered severe turbulence and was diverted to Suvarnabhumi Airport in Bangkok, Thailand. A British man died and multiple people were injured, some of whom were admitted to the intensive care unit in Thai hospitals.
SIA appears to have managed the unfortunate incident well. Help was promptly extended to passengers and crew who were affected as well as their loved ones.
Importantly, the group&rsquo s chief executive officer, Goh Choon Phong, was highly visible in managing this incident. For example, he was on hand to welcome a relief flight that brought back passengers and crew members to Singapore. He also posted a video message addressing the incident, wrote a memo to staff offering gratitude and assurance, as well as met affected passengers, crew and their loved ones in Bangkok to personally offer his support.
Effective crisis management is critical for SIA, which deals with many suppliers and customers, including individuals of diverse nationalities. Missteps can be costly and could quickly undo years of investment in brand building, ensuring high service standards, and championing safety as well as reliability.
Strengths
The SIA Group boasts multiple strengths. It has a dependable, large shareholder in Singapore investment company Temasek, which stepped up to support the group in fundraising to help it ride through the Covid-19 pandemic.
The SIA brand is strong and the airline is a market leader. The group serves many customers in Asia, where demand for air travel could grow rapidly amid rising income. The group will also benefit from the huge investments being made in its key hub, Singapore&rsquo s Changi Airport.
Being financially strong, the group can fund investments in aircraft, passenger experience and digitalisation to stay ahead of its competitors.
Crucially, SIA may command pricing power to mitigate inflationary pressures. Think of serving passengers who pay for a premium experience to pamper themselves and create memories.
Moreover, if SIA&rsquo s leaders excel in crisis management, this will help preserve the airline&rsquo s reputation, which is crucial to its revenue generation. Even as competition intensifies, SIA can command passenger loyalty and charge higher fares should passengers perceive that it has a superior offering. Having a good reputation also helps attract and retain talent.
Still, investing in airlines is not for the faint-hearted. Therefore, investors who seek peace of mind may wish to avoid SIA Group.
Risks aplenty
Many risks that the group faces can be covered by insurance policies. Still, the business is subject to much turbulence.
Sure, air travel is a very safe transportation mode. However, any air disasters may have a huge casualty toll and generate much negative publicity. With climate change, incidents of severe air turbulence may get more frequent and more extreme.
Outbreaks of health epidemics or armed conflicts could suddenly disrupt air travel. Airlines may face swingeing environmental regulations or be targeted by aggressive climate change activists.
Airlines and global air travel are susceptible to cyberterrorism and technological malfunctions. Will cross-border travel decline in a more fractured world, which retreats from globalisation?
Then there are the risks that come with SIA Group&rsquo s scale of operations. In FY2024, SIA and Scoot carried a combined 36.4 million passengers. As at end-March, the group&rsquo s passenger network covered 118 destinations in 35 countries and territories.
Much can go wrong, given the global nature of the group&rsquo s business and the many staff, suppliers and customers of different nationalities with which it deals. In addition, disgruntled customers or staff may use social media to air any grievances.
As yet, I have not mustered up the risk appetite to invest in SIA Group, despite a compelling investment case.
Nonetheless, I root for SIA&rsquo s management to master handling turbulence in order to deliver shareholder value as well as help fly SIA&rsquo s flag high for the benefit of Singapore.
As the national carrier serves many people globally, it can be a potent force of soft power for our country, helping us survive by making friends in a more hostile world. A successful SIA Group can also help Singapore grow as a global aviation hub amid fierce competition.
Some years back, I travelled extensively and enjoyed being a member of SIA&rsquo s highly valued Priority Passenger Service (PPS) Club, albeit I did not do enough to qualify for the airline&rsquo s highest Solitaire PPS Club status.
Today, while I travel much less, I continue to enjoy flying with SIA, and look forward to an upcoming leisure trip on our flag carrier with confidence.
SIA to compensate injured SQ321 passengers at least US$10,000 each for now
Those with more serious injuries to get US$25,000 SIA will also give all passengers a full airfare refund
SINGAPORE Airlines (SIA) : C6L -0.29% is offering all passengers who were injured during last month&rsquo s turbulence-hit SQ321 flight individual compensation starting from US$10,000.
In a Facebook post on Tuesday (Jun 11), the national carrier confirmed it sent out its offers of compensation to injured passengers on Jun 10.
Passengers who sustained &ldquo minor injuries&rdquo from the May 21 incident were offered US$10,000.
Those who were medically assessed to have sustained &ldquo serious injuries, requiring long-term medical care, and requesting financial assistance&rdquo were offered an advance payment of US$25,000 to &ldquo address their immediate needs&rdquo .
This will be part of the final compensation received by these passengers, said SIA.
&ldquo For those who sustained more serious injuries from the incident, we have invited them to discuss a compensation offer to meet each of their specific circumstances when they feel well and ready to do so,&rdquo added the group.
SIA said it will also provide a full airfare refund &ndash along with delay compensation in line with relevant European Union or UK regulations &ndash to all passengers who were aboard SQ321 on May 21. They also include those who did not sustain any injuries.
It was noted that each passenger was further provided a sum of S$1,000 to meet their immediate expenses upon departure from Bangkok.
&ldquo SIA has also been covering the medical expenses of the injured passengers and arranging for their family members and loved ones to fly up to Bangkok where requested. All affected passengers should have received their offers of compensation via e-mail, along with information on how they may proceed with their claims,&rdquo said the group.
Shares of SIA were trading S$0.02 or 0.3 per cent lower at S$6.77 on a cum-dividend basis as at 1.32 pm on Tuesday, after the statement was released.
In its latest post, the group also said it &ldquo deeply apologises to all passengers for the traumatic experience&rdquo during which a 73-year-old Briton, Geoffrey Kitchen, died of a suspected heart attack after the carrier encountered extreme turbulence.
Several dozens of other passengers on the flight were later treated for paralysis, spinal and spinal cord injuries, as well as skull and brain trauma.
Those who suffered from spinal and brain injuries were estimated by one lawyer to potentially seek eight-figure payouts for damages.
Responding to queries from The Business Times on how affected SQ321 passengers have been, and will be, compensated, SIA said the group has a &ldquo comprehensive insurance policy in place that covers such incidents&rdquo .