SIA    Last:6.81    -0.04

SIA

iPunter, there are 2 reasons why I hold it for so long, both the so-called 'wrong reasons' in most investors' eye.

1) I fell in love with that stock.

2) I didn't want to cut loss.

 

Having said that, I also have deep belief that it will come back up. Temasek just won't let SIA tank. Along the way, I have collected quite a bit of dividend (during the same period when bank interest was almost = 0%). OK that's self consolation. I'm still waiting for the day it goes pass $20. I know it will be a long time to come. I have waited 7 years... what's another 5 years? ha ha. Please huh, all the others reading this, mine is a very bad example of investor.

 

hi Fairygal... sorry.. just sighted your post and question... no i am not vested... SIA is already the most profitable airline in the world.. and the price per share has already factored all these.. I dont see much upside.. but rather if anything I see the pressure on management to continue to improve on profits has already caused them to cut costs, affecting quality for the economy passengers (see my post below..) in the long term their market share would suffer...

no I am staying out of SIA... there are better counters...

 

Got this one for 18.40 for 2 weeks. Hoping that China Eastern investment will boost price. But still no confirmation. Any comment?

 

Eastonbay...

You have my salutes for being able to hold that long... :)

I would have long sold out when it dropped by $1 or less. 

 

Fairgal, yes. Vested just 1 lot since year 2000. Saw it crashed all the way down to $8 and crawling back to $16 and now $18/$19.

 

EastonBay/CKS,

So you guys vested in SIA? Not yet for me, still have the wait and see attitude! Waitng for it to touch $18.00. Think I will wait long long.

 

Could someone please help me understand the capital reduction better.

SIA plans to return $18.46 for each share reduced. Assuming today's closing price of $18.70, and disregarding the dividends, does this mean we are at the losing end - that is, SIA is buying back the share at a discount of $0.24 each?

I am interested in holding some SIA shares, but baced on my understanding described above, I should buy only below $18.46 (unless I am willing to use part of the dividend to cover the 'loss').

Or am I mistaken?

Thanks!

 

Please advise if I am correct on this:

If an investor is holding 2 lots of SIA shares, based on the formulae provided, the Capital Reduction exerise will be neutralized due to the Top-Up option. He neither gain any cash back or suffer a reduction of his share holdings in this exercise.

 

Yippeee! Goodies... (even better if you are employees, 6 months bonus. Too bad, i am not one)

1) FINAL DIVIDEND OF 35 CENTS The Board recommends a final dividend of 35 cents per share (taxexempt one-tier) to be paid on 17 August 2007. With the interim dividend of 15 cents per share paid on 23 November 2006, this will bring the total dividend for the financial year to 50 cents per share.

 

2) Special dividend:

the Company will pay the Special Dividend of $0.50 for each ordinary share in the capital of the Company ("Share") held by or on behalf of Shareholders on a date to be determined by the Directors;

3) Capital Reduction.

The Company will cancel one Share for every 15 Shares held by or on behalf of Shareholders, as at the Books Closure Date, and will return $18.46 in cash for each Share so cancelled.

click link to see details on  capital reduction exercise

 http://info.sgx.com/webcoranncatth.nsf/VwAttachments/Att_7C640710980637DA482572D8002D213B/$file/SGXAnnmtCashDistb.pdf?openelement

 

 news from Reuters:

Thursday May 10, 12:13 PM

China Eastern Airlines in final talks to sell stake to Singapore Airlines

China Eastern Airlines Corp, one of the nation's largest arilines, has entered into final talks to sell a stake to Singapore Airlines, state press reported Thursday.

The deal would make Singapore Airlines a strategic investor in the money-losing Chinese carrier, the China Securities Journal reported, citing sources and without elaborating.


No financial details were provided.

An official from China Eastern Airlines's board secretary office declined to comment on the report when contacted by AFP.

China Eastern's Shanghai-listed shares rose 7.35 percent to 8.03 yuan (1.04 dollars) in morning trade Thursday after rising its 10 percent daily limit a day earlier.

Its Hong Kong-listed stock closed up 3.69 percent to 2.81 Hong Kong dollars on Wednesday.

The Shanghai-based carrier managed to narrow its net loss by 46 percent in the first quarter of the year to 510.9 million yuan (66.3 million dollar).

 

 

 

OIC... Eastonbay, yes I also use to fly economy BA or QA and KLM and I do find their seats rather crammed (so I gave up on them years ago although their fares are about a third cheaper than SQ).. like you I go economy as I am doing my own business and because I rather use the extra $$$ saved (for flight to Europe it is about S$ 5,000) to splurge on 5 star hotels at my destination...I am Krisflyer Gold and as I get check in perks plus use of premier lounge anyway so I always travel SQ and I travel alot.....  I do note that SQ service tends to depend on the flight schedule....when their flights are not so full, service is better besides I get to sleep on three seats.

 but recently I do note the standard of food and facilities in economy have detiriorated.. as they shift their attention to promote first class and business travel..

It would appear that recently they even go to extreme ends to remind you that you are cattle class when compared to business class traveller..I note this most vividly in my recent flight from Frankfurt (SQ 25).  It was packed...I was unfortunate to get a window seat.. therefore not easy for me to move in or out.. so I didnt go to rest room until my neighbour got up to go to by then it was rather tight.. but to my horror, the queue was at least 16 ppl on either row.  They have simply too little toilets for the pack economy class.. so in desparation I move forward  to use the business toilet.. but my luck quite "suay" it was also occupied but there is no queue so I waited..  then came the chief steward who came up to me with a plastic smile and asked be to get back to the economy queue..as I was really tight & urgent I told him so and said that there is a long queue:  but he still insisted ..  so I told him in that case I will then let go in front of him.. it was only then that he allowed me to use the toilet.....  frankly speaking I felt humiliated... but then after that I stop drinking for the rest of the whole trip.. I did feel like writing to the SIA management but I guess they must have set this policy.  . the Chief Steward who is just carrying out orders...and besides I thot as it is a one off no big deal for me: I will just avoid travelling on packed economy schedules...

but the point I am  trying to make is that if they continue to deliberately cut costs in economy class... I may then have to travel other airlines. SIA is the world's most profitable airline..i.e they have a successful formula in the past by being generous to economy passengers, recently they seem to be dropping this policy and my concern is soon this will no longer the SIA that I know and proud of.  To advertise fantastic improvements in service of business class and first class to economy passenger in pack crammed conditions is certainly the hight of insensitivity.. after all already we are paying a premium for the economy class cf with other airlines and if service / facilities are the same why travel SIA?  I think this is the wrong way... I had travel business and first class in the past and frankly then SIA first class is not comparable to Swissair, KLM or BA but Swissair went bust..while SIA became the most profitable. so I wondered if catering so much for first class at expense of economy will increase profitability more

 

 

chinkiasu, I was talking about economy class when I mentioned spacious seats. I really think its economy class is more spacious than many other airlines for example BA. I was in this British Flight to UK; cannot help but wondered how can an ang moh airline have seats that is narrower than SIA (an asian airline).  If a skinny person like me find it uncomfortable, it must be terrible for angmohs. It is worse when it is a long haul flight.  Also, I likes it's video on demand and games :). Almost bored to death on BA.

 

I travel on business class only if I don't have to foot the bills (a cheapo  basically)

 

Talking about airlines, I'm most impressed by Emirates. Excellent service .... as good as SIA, if not better.

 

hi Eastonbay, yes I agree CDG is a bit chaotic.. but then you are comparing Changi with them, actually not so bad.. my experience was ok, I have been to CDG five times last year..actually my friend has taken AF before they rather like the experience and didnt lose the luggage..they were then also travelling with kids.. He took SQ expecting it to be better (since he pay a higher price for it) but he was quite disappointed...  mainly because the plane was old and the seats rather small = he is a big man.  btw.. I am talking economy class, so we cannot actually compare you experience with his....he is travelling on own expenses not company account. Perhaps one day when you (and  jackjames) do go SQ on economy (i.e cattle class I call it) and when the plane is full then I suppose you can then make a true comparison.. .

mind you the stewards & stewardess are absolutely great... it is the facilities like food & the out of expired milk that puts ppl off, the stewards & stewardess of course have to put extra effort/spend time saying sorry to passagers.. and of course showing the advert about the excellent facilities in business & first class to economy passagers really rubs it in...

 

been flying with SIA 12 flight to and fro Sg & Frankfurt, no problem at all~ sweet....

 

Your friend will regret his/her decision with AirFrance when he loses his luggage. Besides, CDG airport is a mess... Any european airline but Air france. The only two time we flew with them (out of no choice), they lost our baggage in CDG.

 

SIA's Business class really made you feel like king. Same cannot say of economy class. So I suspect what CKS said was right that they gave a  lot attention to the Biz/1st class people and perhaps neglecting the general mass. 

 

2 airlines I like. Thai Airways and KLM, the dutch airline that doesn't exist anymore after it merged with Air France (eerkk). You can feel the genuine service from their hearts, not just standard smiles.  Having said that, I'm quite 'jian4', I still like SIA because it's spacious and on time.

 

SIA's service is good but not 'unforgettable'.



The inflight service crew are well trained but basically 'go by the book'. Yes sir/mdm, no Sir/mdm, serve with a smile, respond promptly to passenger requests ...etc....many other Asian airlines and also ME airlines have caught up....so, there is nothing 'special' about their service.



Perhaps the crew are not equipped with the personality and the spontaneity to be the best in this very competitive world.



Perhaps I can relate an 'unforgettable' inflight service experience I had a few years ago on Lufthansa Business class.



When it was meal time, the stewardess came around with the drinks. 3 types of red wines were on offer. The passenger seated next to me and I asked her opinion of which was the best. She promptly placed 3 glasses each on our trays and asked us not to look while she poured.....and asked us to taste and make our selection. Now, how good is that!!!!!.....inflight wine tasting!!!!......   



But, what really made the flight 'unforgettable'...was.....before we landed, the stewardess surprised us by presenting us a bottle each of our favourite wine....nicely wrapped...to take with us. ........that is what I will rate as a GEM (Go the Extra Mile) service.

 

ok cos... the friend has said he will now fly Air France.. I was quite disappointed because I have recommended him to fly SQ...

the point I am saying is SQ standards have gone down... in the past they can say their service is best in world and I agree but today in the last few months, they are beginning to take their success for granted and have started cost cutting in economy class... why, got to ask the management but I suspect they are concentrating on First Class and Business class passengers...

to advertise first class & business class comfort to "captured"economy paying passengers when they are crammed for space and lousy food is a height of insensitivity... who doesnt want to go business or first class.. but the price difference is just beyond the normal economy passengers reach.. it is rubbing salt to wound.....

anyway mark my words, if SIA continues such cost cutting approach to compromise on quality, they are going to see SIA slide down... you can only cut cost so much....end of the day, like you say, people will wake up and switch airlines...

 

There is always a choice to take other airlines so one cannot really complain.  Gahment dun force Singaporean to take SQ.  :p

I have always enjoyed services from SIA whether I travel for business or for pleasure.

 

Is it really that bad? I know there were some complaints about them giving better service to ang mohs but I have not really experienced such things.