SIA    Last:6.68    +0.03

SIA

Singapore Air net falls on fines, lags estimates: Update

WRITTEN BY BLOOMBERG

FRIDAY, 28 JANUARY 2011 17:51

 

 

 

 

 

Singapore Airlines 3Q net profit likely fell

WRITTEN BY DOW JONES & CO, INC

THURSDAY, 27 JANUARY 2011 17:05

Singapore Airlines (C6L.SG) is likely to report 3Q net profit of $371 million from $403.7 million a year earlier as the carrier is likely to provide for a fine for price fixing on air cargo shipments, according to a Dow Jones Newswires poll of five analysts.  Revenue likely rose to $3.84 billion from $3.42 billion, the poll forecasts. Singapore Airlines said on Dec. 1 that its cargo unit had set aside $61.92 million in the current financial year as provision for an antitrust fine that it has agreed to pay the U.S. Department of Justice.    Challenges remain for the airline, analysts say. “As low-cost operators start to expand their networks into longer-haul destinations, we believe strong demand growth is unlikely. However, SIA is usually able to manage its costs better than its peers,”    Royal Bank of Scotland says in a note to clients. 3Q earnings are due after market close on Friday.    /theedge///

 

got people cut loss on SIA one meh? really in need of cash?

lucky168      ( Date: 06-Jan-2011 00:39) Posted: cut loss cut loss.... cannot tahan!

 

SQ! You gotta help the STI and not sitting there grounded on your big fat jumbo 380 tonne ars* doing nothing!!!!!!!

 

Am holding on tight... waiting for the flight!

lucky168      ( Date: 06-Jan-2011 00:39) Posted: cut loss cut loss.... cannot tahan!

 

cut loss cut loss.... cannot tahan!

 

Technical Comment from CIMB

 SIA broke below the wedge support recently. The bulls tried to fight back but

selling pressure was a tad stronger. Looking at the chart, we still think there is

risk to the downside. Once the candles break below its recent swing low of

S$15.00 expect prices to skid towards S$14.60 and S$13.90 next.

• The bearish divergence on its indicators suggests that follow through

momentum has faded.

• Investors ought to stay vigilant. If prices continue to linger below its key moving

averages (now at S$15.38-S$15.68), one may want to lock in some profits

here. Put a buy stop above S$15.70, just in case.

Life Is Great 

 

   means only taking breather ah? Ohhhhhhhhhhhhhhhhhhhhhhh.......

New123      ( Date: 05-Jan-2011 11:37) Posted: I think is good to consider when it is around $15.02 - $15.06...

 

I think is good to consider when it is around $15.02 - $15.06...

 

Selling on SIA stopped? Or taking breather?

 

 

 

SIA’s new CEO may shed Virgin Atlantic stake

WRITTEN BY BLOOMBERG

FRIDAY, 31 DECEMBER 2010 14:12

 

Singapore Airlines’ Goh Choon Phong, who takes over as chief executive officer tomorrow, may shed the last major remains of the carrier’s global expansion strategy as he confronts rising competition in Asia.

Goh, 47, may get offers for the airline’s 49% stake in Virgin Atlantic after the UK carrier said this month it had received tie-up inquiries. Outgoing CEO Chew Choon Seng called the investment “underperforming” two years ago and has said the airline would consider a sale.

In Asia, Goh faces low-fare competition on long-haul routes from Jetstar and AirAsia X Sdn., as well as renewed efforts by Cathay Pacific Airways and Korean Air Lines Co. to lure lucrative business-class travellers. Middle East carriers Emirates Airline, Qatar Airways and Etihad Airways have also ordered close to 300 planes since 2007 as they build hubs linking Europe and the Asia-Pacific region.

“Goh has a tough job ahead of him,” said K. Ajith, a UOB-Kay Hian Research Pte analyst in Singapore. “The environment is drastically different from five or 10 years ago, when SIA managed to fend off competition by focusing on its branding.”

Virgin, 51% owned by billionaire Richard Branson, hired Deutsche Bank AG to explore options as British Airways Plc boosts cooperation with American Airlines across the Atlantic and completes a merger with Madrid-based Iberia Lineas Aereas de Espana SAtigert. Singapore Air bought its stake in a 600 million-pound ($1.2 billion) investment concluded in 2000.

SIA would consider “interesting opportunities” for the stake, Nicholas Ionides, a spokesman, said in an e-mail. Goh, who joined the carrier as a cadet administrative officer in 1990 after graduating from the Massachusetts Institute of Technology, declined interview requests, he said.

Virgin Offer
Whether SIA will sell the Virgin stake will largely depend on what price is offered since the carrier isn’t short of funds, said Rohan Suppiah, an analyst at Kim Eng Securities Pte in Singapore.

“SIA isn’t in a hurry to sell, but if they get a fair price they will,” he said. “Virgin hasn’t provided any significant synergies over the years.”

Delta Air Lines Inc. and Middle East airlines are among carriers exploring a Virgin tie-up, Sky News reported this month, without saying where it got the information from. Singapore Air’s stake complicates a deal as local ownership rules limit non-European investors to minority stakes.

“Either SIA sells or Branson loses effective control by selling part of his stake,” said Andrew Miller, chief executive officer of CAPA Consulting LLC, which advises airlines.
 

Very Supportive
SIA is “very supportive of our business strategy including the review by Deutsche Bank,” Greg Dawson, a Virgin spokesman, said without elaborating. Virgin operates 38 twin-aisle planes, according to its website.

Chew, who has spent almost four decades at SIA, sold a leasing arm and spun off a ground-handling unit while CEO to focus on the carrier’s main flying business. He will take over as Singapore Exchange’s chairman on Jan 1.

Chew’s predecessor, Cheong Choong Kong, bought stakes in Virgin and Air New Zealand to expand overseas. The value of the Air New Zealand investment was written down in 2001, and the remaining holdings were sold off three years later. Virgin was expected to hold an initial public offering within three to five years of SIA’s investment, Chew said in 2006.

Shares Trailing
SIA, which operates 110 planes, was unchanged at $15.54 as of 11:04 a.m. in the city-state. The carrier has trailed the 15-stock Bloomberg Asia Pacific Airlines Index this year amid rising competition for premium and low-cost travellers. The shares have climbed 4% this year, compared with the index’s 27% advance.

Competition is intensifying in the premium market, which accounts for about 40% of SIA’s sales. Hong Kong-based Cathay Pacific is working on a HK$1 billion ($165 million) business-class upgrade to lure executive travellers.

Korean Air, which aims to get 50% of passenger sales from premium classes by 2019, will receive its first five Airbus SAS A380s next year. The superjumbos will each be fitted with 94 business-class seats, compared with the 60 found in SIA’s A380s. Emirates is building a fleet of 90 A380s.

“SIA needs to think about how to position for the longer-term given the competitive landscape,” said Christopher Wong, who oversees $45 billion of assets, including SIA shares, at Aberdeen Asset Management.
 

Budget Competition
SIA has responded to budget competition through a 33% stake in Tiger Airways Holdings. The low-cost affiliate, which operates from Singapore and Australia, plans to form a budget airline in Bangkok next year with Thai Airways International Pcl.

Tiger, Qantas Airways’s Jetstar and AirAsia Bhd. are leading discount carriers’ market share gains in Asia as they add new planes. Budget airlines accounted for about 22% of passengers in the first 10 months of the year at Singapore’s Changi airport. That compares with 12% in 2008, according to data from operator Changi Airport Group.

Low-fare carriers are also adding intercontinental routes. Jetstar started flights to Melbourne from Singapore this month, touting fares 30% cheaper than full-service airlines. It plans to add more long-haul services next year. AirAsia’s long- haul affiliate is offering flights to Australia, London and Japan from its base in Kuala Lumpur.

SIA’s corporate travel base and reputation will be an asset as Goh faces the new competition, said Steven Lim, who manages about $257 million at Daiwa SB Investments in Singapore. The carrier, among six airlines with Skytrax’s highest five-star rating, has also been profitable every year since going public in 1985.



“As a business hub, SIA does enjoy the advantage of business travel,” Lim said. “Goh’s immediate challenge is to continue Chew’s good work, keep the company’s profit record intact and maintain the reputation SIA has as a premium airline.” 

/theedge/

 

 

Hullo, plane supposed to fly, not sleep!

 

Still a good buy!

 

Since u know the logic, what r u waiting for? hoot lar..

Bluevaio      ( Date: 16-Dec-2010 15:45) Posted: SIA today down so much... They simply downgrade it so that can buy at cheaper price!What the ****

 

DMG optimistic on SIA’s China Cargo stake buy

WRITTEN BY DOW JONES & CO, INC

TUESDAY, 21 DECEMBER 2010 12:35

DMG says it’s optimistic on the potential arising from Singapore Airlines’ (C6L.SG) acquisition of a 16% stake worth $65 million in China Cargo Airlines, announced Monday.  “While management has not provided any guidance on the outlook specifics, SIA’s pivotal role in the route optimization of China Cargo Airline’s freighter carriers could potentially see SIA offering direct connectivity between China and Singapore (and Asean for the matter) and Australia, while China Cargo Airlines would be dedicated to traffic in/from the mainland China region.” Maintains stock’s Buy rating with an unchanged target price of $18.50. The house adds, the cash injection and reconfigured shareholding structure will allow China Cargo Airline to expand its fleet base and re-optimize its routes, to better compete with Cathay’s cargo venture with Air China, which is set to commence next year. Shares are +1.6% at $15.42. /theedge/icomeireadipostFYI//

 

Jetstar challenges SIA on budget long-haul

WRITTEN BY BLOOMBERG

THURSDAY, 16 DECEMBER 2010 21:11

Jetstar, the budget unit of Qantas Airways, makes its first Singapore-Melbourne flight today, marking the beginning of its challenge to Singapore Airlines on long-haul routes. The carrier sold 210 tickets for the 8:50 p.m. flight, including 24 in business class, Simone Pregellio, a spokeswoman, said today. The low-fare airline will operate the daily seven-hour flight using an Airbus SAS A330-200 that can carry as many as 303 passengers. Jetstar may base as many as four A330s in Singapore by the end of next year, as it adds flights to Auckland in March and possibly services to north Asia and southern Europe later in 2011, Jetstar Asia Chief Executive Officer Chong Phit Lian said today. The carrier is touting fares 30% cheaper than rivals as it seeks to lure travellers from full-service carriers. “Competition will increase and this will put some pressure on Singapore Air,” said Kelvin Lau, a Hong Kong-based analyst at Daiwa Institute of Research, who has an ‘outperform’ rating on SIA. “There will always be people who will want the cheapest fares.” Melbourne Fares Jetstar offers one-way flights to Melbourne from $428, including taxes and surcharges, it said in its e-mail. The carrier’s passengers have to pay an extra $20 if they want to take check-in baggage, according to its website. SIA is running a promotion on its website offering return flights to Melbourne from $818, including baggage, taxes and surcharges. Passengers buying these tickets have to travel this month and return in late January. Singapore Air, which operates 21 weekly return flights between the city-state and Melbourne, welcomes and advocates competition, Nicholas Ionides, a spokesman, said in an e-mail reply to Bloomberg questions. Jetstar and AirAsia X Sdn. are adding budget long-haul services in Asia as rising wages stoke travel. The move is a break from the traditional low-cost model, pursued by Southwest Airlines Co. and Ryanair Holdings Plc, which focuses only on short-haul flights of less than five hours. AirAsia X, partly owned by AirAsia Bhd. and Richard Branson’s Virgin Group, plans to about triple its fleet over the next six years. The carrier flies to London, Australia and Japan from its Kuala Lumpur hub. Jetstar expects to receive Boeing Co. 787s from mid-2012, David Hall, the head of its Australia and New Zealand operations, said today. Tiger Airways Singapore Air’s budget affiliate Tiger Airways Holdings said it had no plans to begin offering long-haul services or a business class because of the extra cost such a move would cause. “Tiger Airways will stick to our successful model of keeping things simple,” the carrier said in an e-mail. “The most cost-effective way to grow is by replicating profitable short-haul, single-class flights across the fast-growing Asia- Pacific region.” Budget carriers including Jetstar, AirAsia and Tiger Airways are winning market share in Asia as they add capacity. Such carriers accounted for about 22% of passengers in the first 10 months of the year at Singapore’s Changi airport, according to operator Changi Airport Group. That compares with 12% in 2008 and 8% in 2006, airport data show. “Asia-Pacific’s low-cost carriers are continuing to grow and take share away,” Derek Sadubin, chief operating officer at Centre for Asia-Pacific Aviation, said in a Bloomberg TV interview. “That’s really causing the incumbent or full-service airlines to really consider their positioning.” ANA, Thai Airways All Nippon Airways Co., Japan’s largest listed carrier, is working on plans to form a budget unit with a Hong Kong investor, it said in September. Thai Airways International Pcl is teaming up with Tiger Airways to form a budget carrier in Bangkok. AirAsia, Southeast Asia’s largest discount carrier, said last month third-quarter net income more than doubled as passenger traffic rebounded with the region’s economy. Tiger Airways posted a profit in the three months ended in September after it flew 25% more passengers than a year earlier. Rising travel and economic growth may help Asia-Pacific airlines post combined profits of US$7.7 billion ($10.1 billion) this year, the highest tally for any region, according to the International Air Transport Association. The region is home to more than half the world’s population. /theedge/ /i come i read i post/

 

 

SIA today down so much...

They simply downgrade it so that can buy at cheaper price!What the ****

 

* Index up 0.2 percent, 3,145-3,160 pts seen in afternoon

* SIA underperforms on lower November load factor

* STX OSV, XinRen Aluminum up on broker reports

By Eveline Danubrata

SINGAPORE, Dec 16 (Reuters) - Singapore shares were up 0.2 percent on Thursday in sluggish trade that traders said is likely to continue in the afternoon, but Singapore Airlines underperformed the broader market on lower overall load factors data in November.

By the midday break, the Straits Times Index (STI) gained 6.60 points to 3,153.80. Total value of shares traded in the morning session was S$628.3 million, down from S$828 million on Wednesday.

Local traders saw the STI trading in a tight range of between 3,145 and 3,160 points after the midday break.

Shares of SIA fell as much as 2.1 percent after it said its overall load factor in November was 70.1 percent, lower than the 71.1 percent recorded in October and November 2009's 72.3 percent. [ID:nL3E6NF0NZ]

At midday, SIA shares were trading at S$15.14 on a volume of 3 million shares.

"The growing challenge for SIA is increasingly coming from the Middle Eastern carriers on the long-haul transit routes and also regionally from the lower-cost carriers," said Andrew Orchard, an analyst at RBS.

"These competitive pressures (in terms of both pricing and service) are structural factors. They are challenges that are in place for the long term," he added.

Shares of Singapore-listed shipbuilder STX Offshore and Specialised Vessels rose as much as 7.3 percent after Goldman Sachs initiated a "buy" rating and a target price of S$1.54 on the stock, traders said

bsiong      ( Date: 16-Dec-2010 12:24) Posted: SIA downgraded by UOB KayHian; "Dismal" Nov traffic growth WRITTEN BY DOW JONES & CO, INC    THURSDAY, 16 DECEMBER 2010 10:44 UOB KayHian downgrades Singapore Airlines (C6L.SG) to Hold from Buy and cuts its target price to $15.90 from $18.00 after the carrier's November passenger traffic growth was a "dismal" 1.1% on year. "For the past two months, growth averaged 0.3% and 4Q is a traditional peak period for SIA. This number does not lend much confidence to SIA's growth prospects." Notes passenger load factor fell 3.0 ppts in November, double October's decline, while cargo traffic slowed as expected. Says the "much vaunted traffic recovery did not materialise...SIA's profit recovery came on the back of a yield recovery, surge in cargo traffic and lower fuel prices. The ability to sustain these remains questionable, especially in the wake of ongoing competition from low-cost carriers and the Middle Eastern carriers." Cuts its FY11 net profit forecast by 1.4% and FY12 by 18.5% on lower traffic growth assumptions. The shares are off 1.2% at $15.28.     /theedge/

 

Alright, now we see UOB's call on SIA reliable or not.. hehehhehee...