Singapore Airlines introduces new services to Canberra, Wellington

National carrier Singapore Airlines will operate a new route, called the "Capital Express", to Australia's Canberra and New Zealand's Wellington, it announced in a news release on Wednesday (Jan 20).

Subject to regulatory approvals, flights will operate four times per week from Sep 20 on a Singapore-Canberra-Wellington route, with return flights on a Wellington-Canberra-Singapore route, it said.

Route timings for the new route based on a launch date of Sep 20, 2016. (Table: Singapore Airlines)


Flights along the new route will be operated with the 266-seat retrofitted Boeing 777-200s fitted with 38 Business Class seats and 228 Economy Class seats, it added in the release.

Singapore Airlines said with the launch of Capital Express, it will be the first airline with flights between Canberra and Wellington, as well as the first to operate regularly scheduled international services to and from Canberra.

“This new service linking Singapore, Canberra and Wellington reflects the close ties between the three countries,” said Singapore Airlines CEO Goh Choon Phong.

Flights will be available for booking through the Singapore Airlines website, call centres and travel agents in the coming weeks, the company said.

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Singapore Airlines Singapore Grand Prix 2015

Guess who I bumped into at work! Sorry @ivygoh_ you still have to take more calcium. 😂

A photo posted by Amelia Wong (@a_meliaw) on Sep 19, 2015 at 1:46am PDT

Singapore Airlines' passenger numbers fall in February

Singapore Airlines (SIA) carried fewer passengers in February amid a decline in capacity.

SIA’s passenger load factor fell 1.6 percentage points on-year to 75.2 per cent in February, the airline said in a news release on Monday (Mar 16). SIA's systemwide passenger carriage fell 3.5 per cent on-year, with a 1.3 per cent reduction in capacity.

The greatest drop in passenger demand was for routes plying the Americas and Europe. These fell 7.4 percentage points and 5.4 percentage points respectively, said the airline.

“The competitive landscape continues to be challenging,” said SIA. “Singapore Airlines will remain nimble to redeploy capacity to better match market demand and promotional activities will continue in relevant markets.”

SILKAIR PASSENGER NUMBERS IMPROVE
However, SilkAir’s passenger numbers went up in February, with a 1.2 percentage-point increase on-year in passenger load factor, to 72.7 per cent.

SilkAir carried 10.3 per cent more passengers in February, while there was a 12 per cent on-year increase in capacity.

The overall cargo load factor went up by 5.2 percentage points to 63.3 per cent. Cargo traffic went up 17.1 per cent, while overall capacity rose 7.6 per cent. The load factor went up for all route regions as the capacity changes were closely matched with demand, said SIA.

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SIA gives older pilots a month's extension

Singapore Airlines (SIA) will allow captains above the age of 62 to fly until the end of April instead of March, as earlier announced, following discussions with the pilots' union and the Manpower Ministry.

The one-month extension was given as talks over SIA's decision not to re-hire retiring pilots continue, airline spokesman Nicholas Ionides said.

Both sides are exploring more long-term options, including allowing captains to stay until they turn 64, with shorter flying hours, The Straits Times has learnt.

Another alternative is to have them take no-pay leave. No further details were available.

The Manpower Ministry was approached by SIA and the Air Line Pilots Association - Singapore to help resolve the matter.

Last month, SIA said it would stop offering re-employment to captains above the retirement age of 62. Those already on re-employment contracts - that allowed them to fly until they are 64 - would also have to leave by the end of March, the airline said.

The decision affected more than 90 captains, including the union president, Captain Mok Hin Choon.

At the time, SIA, which employs about 2,400 pilots, said the decision was necessitated by a manpower surplus that has persisted in the past few years and is not expected to change until March next year at least.

The excess manpower is due to network changes and a challenging business environment, and despite measures taken to alleviate the surplus, including voluntary no-pay leave and voluntary movements to subsidiaries.

The challenges have hit business, with operating profit at the parent carrier plunging by 33 per cent year-on-year to $87 million in the three months to Dec 31.

Various measures, including plans to launch a premium economy product in August, have been taken to boost yields and profits.

To counter a slowdown in the premium air travel market, SIA started long-haul budget carrier Scoot more than two years ago and has taken a bigger stake in short-haul airline Tigerair.

But it will take time for the benefits to be realised, industry analysts said, and, until then, SIA will continue to watch its expenses, including manpower costs.

When contacted yesterday, Capt Mok declined to comment, citing ongoing negotiations.

The Straits Times, however, understands that if the dispute is not resolved, the union is likely to take the matter to the Industrial Arbitration Court.

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SIA acquisition of Tiger Airways cleared for takeoff by competition watchdog

The Competition Commission of Singapore (CCS) on Friday (Nov 28) cleared the proposed acquisition of Tiger Airways Holdings by Singapore Airlines (SIA). CCS concluded that the transaction would not infringe the Competition Act as the ailing budget carrier is likely to exit its operations without the acquisition.

SIA is already the biggest shareholder in the Singapore-based budget carrier and will raise its stake in Tigerair from 40 per cent to 56 per cent. This means Tigerair will become a subsidiary of SIA.

Earlier this month, SIA had said there are no plans for a full takeover of Tigerair, but it did not rule out the possibility of such a move in the future. SIA already has another low-cost airline subsidiary, Scoot.

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No takeover plans for Tigerair, but SIA eyes more integration

Singapore Airlines (SIA) is not considering a full takeover bid for Tiger Airways (Tigerair), but it will focus on helping its loss-making associate recover through stronger network cooperation, following SIA’s recent move to increase its stake in the low-cost carrier, says SIA chief executive Goh Choon Phong.

Speaking at SIA’s latest results briefing yesterday, Mr Goh added that Tigerair remains an integral part of the group’s growth plans and has been making progress in consolidating its business.

Tigerair reported a net loss of S$182.4 million for its fiscal second quarter on Oct 17. With its other units such as SilkAir and SIA Engineering also suffering weaker growth, SIA’s net profit for the quarter ended September declined 43.5 per cent on-year to S$91 million.

Mr Goh said: “We intend to increase our stakes (in Tigerair) to a controlling interest, because we believe that SIA, with its scale and connectivity distribution, can benefit Tigerair beyond its alliance with Scoot.”

“A takeover offer for Tigerair is, however, not under consideration. Our focus now is to see in what manner we can help Tigerair back to financial health.”

SIA’s application to increase its stake in Tigerair to around 55 per cent from 40 per cent was submitted to the Competition Commission of Singapore (CCS) for approval last month.

In August, CCS gave the green light for Tigerair and SIA’s low-cost long-haul subsidiary Scoot to form an alliance.

Despite its persistent financial losses, Tigerair remains integral to SIA’s plan to expand its network portfolio via further integration of routes and flights between SIA, its regional wing SilkAir, Scoot and Tigerair.

“These are the four components that will allow us to extend market reach and tap traffic in all segments ... In the case of Tigerair and Scoot, the connecting traffic is less than 5 per cent now — there’s a huge potential we can tap here,” Mr Goh said.

Adding that Tigerair is not a lost cause, he said it is repositioning itself for the future, such as shedding unprofitable overseas joint ventures and taking steps to curb overcapacity.

Mr Brendan Sobie, chief analyst at the Centre for Asia Pacific Aviation, said the worst is likely over for Tigerair and that SIA’s plans for Tigerair will lead to mutual benefits.

“With a controlling stake, SIA can now ensure Tigerair is more aligned with its portfolio strategies,” he said.

But he added that a turnaround is not guaranteed for Tigerair.

“The LCC (low-cost carrier) market remains very competitive and, given its disastrous results in the past two years, any improvement will have to be drastic to be meaningful,” he said.

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Why SIA is keen to heal wounded Tiger

Singapore Airlines (SIA) has pledged $140 million to rescue Tigerair, yet again.

The additional funding will increase SIA's stake in the loss-making budget carrier from 40 per cent now to as high as 71 per cent.

The commitment follows a cash call by Tigerair two weeks ago, after it announced a $182.4 million loss in the three months to the end of September.

For the 12 months to the end of March, Tigerair recorded its biggest annual loss of $223 million.

To replenish its kitty, the airline is offering shareholders more stock at a discounted price.

In a show of support, SIA has said it will take up its entitlement and subscribe for any shares not taken up. Before that, it will also convert Tigerair convertible securities it currently holds into new shares.

This is not the first time SIA has come to Tigerair's rescue. Since 2011, it has doled out at least $100 million in two earlier fund-raising exercises, and seemingly gained nothing.

"It's putting good money into a bad business," said UOB Kay Hian's K. Ajith.

Tigerair has scaled back its operations significantly in the last few months by closing down subsidiaries in Indonesia and the Philippines. Its 40 per cent stake in Tigerair Australia will be sold to Virgin Australia for A$1 (S$1.13).

Bruised and battered, Tigerair is not expected to return to the black until after 2016 at the earliest.

So why is SIA wasting its time and money? Why not just let the Tiger tail fall from the sky?

Because despite current challenges, experts believe that the demand for short-haul low-cost flights in Asia will continue to grow strongly in the coming years.

Without Tigerair, SIA has no presence in this market, leaving it defenceless against rivals like AirAsia, Jetstar and Lion Air.

With the likes of Emirates and Cathay Pacific putting intense pressure on its premium long-haul business, SIA also believes it must diversify and enter new market segments to continue to fly high.

In short, SIA has no choice but to keep Tigerair alive, even if it means effectively taking control of the carrier.

This was never the plan.

In December 2003 when SIA's then chief executive officer Chew Choon Seng announced plans to launch Tiger Airways, he made it clear that SIA would not be in the captain's seat.

Many previous attempts by full-service carriers to run budget airlines had failed, he said. "The low-cost model requires completely different methods and procedures, marketing approaches and skills, and it is hard to be both premium full service and low cost, no frills at the same time. Hence our decision to have it as a 49 per cent-owned associate company rather than a majority-owned subsidiary."

For as long as Tigerair managed its affairs well, SIA did not intervene.

But the shocking grounding of Tiger Airways Australia in July 2011 by the Australian civil aviation authority over safety concerns led to a management overhaul and the entry of an SIA divisional vice-president, Mr Chin Yau Seng, as Tiger's new head.

Industry veteran J. Y. Pillay, widely credited with turning SIA into a global leader, joined as non-executive chairman the same month, although he was approached by Tiger's board even before the kerfuffle in Australia.

Mr Chin stayed for a year before passing the helm to shipping veteran Koay Peng Yen, who served for about two years.

After he left in May, yet another SIA senior executive, Mr Lee Lik Hsin, took over as group chief executive officer.

Like many other low-cost carriers, Tigerair has been hit by regional overcapacity - airlines adding more seats than demand can soak up - which has pushed fares and takings down.

But unlike Malaysia's AirAsia and Indonesia's Lion Air which operate out of huge domestic markets that have cushioned some of the impact of overcapacity on international routes, Tigerair and, by the same token, Singapore's Jetstar Asia, do not have a similar advantage.

Tigerair also made mistakes along the way, with its management "clearly bordering on being clueless", said Associate Professor Terence Fan of the Singapore Management University.

With higher costs than rivals like AirAsia, for example, Tigerair should have stayed away from well-established low-cost territories and opted instead for newly emerging markets like Taiwan and Japan, where competition is less intense and yields higher, he said.

Lessons learnt, the current plan is to downsize, focus on the Singapore operations and turn losses into profits, with SIA's money and expertise.

The past few years were painful but the business restructuring in the last few months, and SIA preparing to take on a bigger stake and role in the running of the airline, could be just what Tigerair needs.

For one thing, it would pave the way for the short-haul budget carrier to work more closely with SIA's wholly-owned long-haul budget arm, Scoot, which they have not been able to do effectively thus far.

This was in fact the plan when SIA launched Scoot in June 2012, as part of its portfolio strategy of having a presence in all the key business segments.

SIA's chief executive officer, Mr Goh Choon Phong, speaking at the group's annual results briefing in May, said: "Tiger and Scoot make natural partners in connectivity. One with narrowbody aircraft servicing largely the region. And the other with the ability to go medium, and potentially in the future perhaps long haul, and operating widebodies, and for them to connect with each other."

Scoot working with Tigerair allows SIA to be present "in virtually all the different segments of the travel industry", Mr Goh said.

"And what needs to be done, as we have done for SIA and SilkAir, is closer integration," he added.

A plan is being worked out and details will be unveiled soon, insiders say.

As long as Tigerair has a place in SIA's overall business strategy, it will have the backing of the premium carrier, said Mr Shukor Yusof of aviation consultancy Endau Analytics.

Never mind that the carrier's "raison d'etre is in doubt, given its weak foundation, limited growth potential and inability to compete effectively", he added.

With Asean moving towards open skies, it is also in SIA's interest to keep Tigerair alive, analysts say.

The goal, by the end of next year, is for the 10 member nations to remove all restrictions on flights from their countries.

When this happens, and as airports in the region continue to invest in infrastructure to boost their handling capacity, carriers like Tigerair will be able to fly as and where they choose within the region.

Today, air services are bound by government-to-government deals and countries are sometimes reluctant to open their skies fully to airlines from neighbouring states for fear that their own carriers will not be able to compete with foreign airlines.

The Tiger is badly wounded but with a clear recovery plan and enough money and expertise to execute it, there is no reason why it cannot roar back in time to cash in on the region's aviation liberalisation and other future opportunities.

SIA will leave no stone unturned to see that this happens.

Mr Shukor said: "SIA has deep pockets and, loss of money aside, it's loss of face and loss of influence in a critical part of the business that they are probably most concerned with."

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SIA's mooted Tigerair takeover: Competition watchdog calls for public feedback

The Competition Commission of Singapore (CCS) is seeking feedback on the proposed acquisition of additional shares in Tiger Airways (Tigerair) by Singapore Airlines (SIA).

CCS on Friday (Oct 24) said it received notification from the two carriers on the proposed deal a week ago. On Oct 17, Tigerair had reported an after-tax loss of S$182.4 million for the fiscal second quarter and said it will raise up to S$234 million via a rights issue.

SIA is already the biggest shareholder in the Singapore-based budget carrier and is seeking to raise its stake in Tigerair from 40 per cent to approximately 55 per cent. If the deal goes through, it would make Tigerair a subsidiary of SIA, on top of the Singapore flagship carrier's low-cost airline Scoot.

More information can be found at ccs.gov.sg. The closing date for the submission of feedback is Nov 7.

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SIA flight hit by turbulence; 22 hurt

Eight passengers and 14 crew members were injured on Saturday (Oct 18) when a Singapore Airlines (SIA) flight from Singapore to Mumbai was hit by turbulence on descent.

An SIA statement said: "Singapore Airlines flight SQ424 from Singapore to Mumbai experienced sudden turbulence during descent on 18 October. There were 408 passengers and 25 crew on board."

"Eight passengers and 14 crew sustained injuries and were attended to by medical personnel on arrival at Mumbai Airport. Of the 14 crew, 10 required hospitalisation. They have been cleared and discharged by the medical personnel. All 8 passengers were hospitalised and 6 have been discharged by the medical personnel after examination," it added.

"Our immediate concern is for the well-being of our passengers and crew. Singapore Airlines will provide full assistance to the authorities in their investigations," said the statement.

A passenger on the flight told Channel NewsAsia that his experience on SQ424 was "scary".

Harsh Nayyar, 30, from Australia was travelling to Mumbai to visit his family when the plane hit turbulence. In a Facebook post on the SIA page, he described the incident as "the plane losing altitude in the air". He also said that during the turbulence, passengers in the main deck, including cabin crew, "were thrown into the air" and "hit the roof of the plane".

He added that throughout the ordeal, the pilot "did not speak any word as to what had happened until the end."

SIA acknowledged Mr Nayyar's comments on its Facebook page and said that "investigations are underway". Information regarding the incident will be released "as soon as it is available", the airline added.

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Airlines adopt new rules to avoid crew fatigue

New flight rostering rules have been imposed on all Singapore carriers, in line with a global push to ensure accidents do not happen because of crew fatigue.

The Civil Aviation Authority of Singapore (CAAS) introduced the changes in June, following a major review which included discussions with Singapore Airlines (SIA) and other local carriers, The Straits Times has discovered.

The move comes at a time when Asia is experiencing a growing number of flights, which experts believe could put a strain on manpower resources. Among the revisions is one which demands that pilots do not handle more than two night flights a week.

When determining rest periods in between flights, airlines must also consider whether the flights before and after are operated in the day or night.

The rule takes into account the fact that the body does not react and adjust to situations in the same way throughout the day.

Airlines are now also required to monitor their crew closely to ensure that they are performing at the highest level of alertness during duty hours, and submit regular reports to the CAAS.

Before the changes, airlines' typical approach to managing crew fatigue had been to set limits on maximum daily, monthly and yearly flight and duty hours, and mandate minimum breaks within and between duty periods.

The general rule of thumb was a minimum 10 hours' rest after being on duty for under 10 hours. For longer flights, the rest period had to be at least as long as the duty time.

Setting such arbitrary limits that are not founded on research and science is an ineffective way to manage crew, according to the United Nations' International Civil Aviation Organisation and the International Air Transport Association which are leading the global move for airlines to review their policies.

A CAAS spokesman said this is an important area of focus "as fatigue is recognised as a major human factor element that affects crew members' (flight and cabin crew) ability to do their job".

So far this has not been the main cause in any incidents at Changi Airport but it has been a "contributory factor in some", though the spokesman would not elaborate further.

SIA spokesman Nicholas Ionides said the airline supports the changes, calling them a step forward in ongoing initiatives to enhance operations and ensure an "appropriate level of alertness for crew". He added that rosters have already been adjusted to reflect the changes.

The Tokyo-Los Angeles flight, for example, used to be operated by one captain and two first officers, with all three crew required to be in the cockpit throughout the flight. Now, it is two captains and a first officer, with two of them on the flight deck at any one point while the third rests.

The changes do not impact the overall number of pilots needed, Mr Ionides said.

Captain William Teng, chairman of the SIA branch of the Air Line Pilots Association (Alpa-S), said: "The changes are timely, given that we now operate more longer sectors with planes that can fly farther than when the rules were first drawn up several decades ago."

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Tigerair reports S$182.4m Q2 loss, announces rights issue

Budget carrier Tigerair posted on Friday (Oct 17) an after-tax loss of S$182.4 million for the fiscal second quarter and said it will raise up to S$234 million via a rights issue.

Tigerair, whose biggest shareholder is Singapore Airlines (SIA), said the huge loss for the quarter ended Sep 30 was due primarily to one-off charges amounting to S$161.1 million, resulting from the subleasing of surplus aircraft and exit from Tigerair Australia.

To strengthen its balance sheet, Tigerair plans to raise up to S$234 million in a renounceable non-underwritten 85 for 100 rights issue. The rights shares will be priced at S$0.20 each, representing a 39 per cent discount to the one-day volume weighted average price of S$0.33 per share on Thursday (Oct 16).

SIA has committed to subscribing for its share of the rights, and will also subscribe for excess rights shares up to a total of S$140 million. Prior to the rights issue, SIA will also convert its perpetual convertible capital securities holdings in Tigerair into ordinary shares.

The conversion will raise SIA’s stake in Tigerair from 40 per cent to approximately 55 per cent before the rights Issue, effectively making Tigerair a subsidiary of SIA.

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SIA pilot in NZ car crash ordered to pay injured colleagues S$10,000 each

The Singapore Airlines (SIA) pilot who pleaded guilty to reckless driving in an accident in New Zealand in which two of his co-workers were seriously injured has been ordered to pay NZ$10,000 (S$9,998) to each victim, according to reports in New Zealand.

Benjamin Yonghao Wu, 32, was also banned from driving for 18 months.

During his sentencing at the Christchurch District Court on Friday (Oct 10), Judge Stephen O'Driscoll said Wu was lucky to be alive, Radio New Zealand reported.

Wu was driving a rental car on Oct 1 with four of his colleagues when he ran a stop sign and crashed into a four-wheel drive towing a horse float near Rolleston, south of Christchurch.

According to APNZ, he managed to slow down to about 40 to 50kmh, but later told police that he did not make an abrupt stop because it would have been “uncomfortable” for his passengers.

Two of the passengers, chief steward Chew Weng Wai and stewardess Vanessa Leonara Savio Coelho, suffered serious injuries in the accident. Both were sitting in the backseat and not wearing seatbelts, the court heard.

Mr Chew, who suffered swelling to the brain and significant internal bleeding, had to be cut free of the wreck, APNZ reported. Ms Coelho suffered a fractured arm and shattered pelvis as well as spleen and bladder injuries. She has since been discharged from Christchurch Hospital, according to the report.

Two other passengers were unhurt and have returned to Singapore.

“TRAGIC ACCIDENT WITH TRAGIC CONSEQUENCES”

Wu’s lawyer Kerry Cook described the incident as a "tragic unintended accident with tragic consequences". APNZ quoted Mr Cook as saying that Wu was unfamiliar with the roads and was taking directions from the GPS system. He saw the stop sign “very late” and "made a split-second decision that was to have unfortunate long-term ramifications".

Judge O'Driscoll noted it would have been "prudent" for Wu as the driver to ensure his passengers were all wearing seatbelts, although there was no legal responsibility for him to do so.

The report also quoted Mr Cook as saying that Wu, who was not injured in the accident, tried to help his colleagues at the scene and immediately took responsibility for the accident. He is “genuinely remorseful”, and has apologised to Ms Coelho and Mr Chew’s wife, who “don’t hold any grudges against him”.

"He is significantly upset and distraught at the harm. He has a significant burden to carry," Mr Cook said.

Before the court’s ruling on Friday, Wu had already paid NZ$15,000 into the court’s trust account for “emotional harm reparation”, the report said.

In a statement released to APNZ after sentencing, Wu said he took responsibility for the accident. "I sincerely apologise for all that has happened. It was never my intention for any of this to happen. I take responsibility as the driver of the car and I am truly sorry for what has happened.

"I am thankful that everyone involved in this accident is showing signs of improvement and recovery and I just wish we can move on from here so my friends and colleagues can focus on becoming healthy and well again."

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Five SIA crew members involved in NZ car crash

Five Singapore Airlines (SIA) crew members were involved in a car crash in Christchurch, New Zealand on Wednesday (Oct 1) morning, with one of them in critical condition and another seriously injured, according to The New Zealand Herald.

The collision at 10.40am local time in Rolleston, about 22km southwest of Christchurch, was between the car with the crew members and a 4x4 vehicle towing a horse float – a trailer used for transporting horses.

Responding to TODAY’s queries, an SIA spokesperson said all five crew members were sent to the hospital for treatment.

“Our immediate concern is for the welfare of our staff and we shall accord them and their families the highest standard of care and assistance,” the spokesperson added.

A statement posted on the New Zealand police department’s website said five ambulances and three response vehicles were dispatched to the scene.

The Fire Service helped to free at least one person, while four people were taken to Christchurch Hospital with two in a serious condition and two with moderate injuries, it added.

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Higher passenger load for SIA in August

National carrier Singapore Airlines (SIA) carried more passengers and filled a higher proportion of its seats in August.

SIA's latest operating data, released on Monday (Sep 15), showed that its passenger load factor rose to 83.1 per cent last month, from 82.4 per cent a year ago.

The number of passengers carried increased by 1.9 per cent year-on-year to 1.69 million. Its capacity, as measured in seats per kilometres, fell 0.5 per cent in August from a year ago.

The Singapore flag carrier's passenger load factor improved for the South West Pacific route but load factor for Americas declined due to weaker demand.

Regional unit SilkAir saw a decline in passenger load factor to 71.5 per cent, from 71.7 per cent a year ago.

Looking ahead, SIA said the operating environment remains challenging. "Capacity will be adjusted accordingly to better match market demand and promotional activities shall continue in markets that require additional support," the airline added.

SIA's overall load factor, which takes into consideration cargo carried relative to capacity, was also higher last month, hitting 70 per cent compared with 69.1 per cent in the same month last year.

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SIA filled higher proportion of seats in July

National carrier Singapore Airlines (SIA) filled a higher proportion of its seats last month as it carried more passengers and capacity declined, the airline said on Friday (Aug 15).

SIA said its passenger load factor rose to 81.7 per cent in July, from 80.8 per cent a year ago. The number of passengers carried increased by 1.6 per cent year-on-year to 1.6 million.

Its capacity, as measured in seats per kilometres, fell 1 per cent in July from a year ago. The Singapore flag carrier's passenger load factor improved across all regions except for the Americas. Regional unit SilkAir also saw a rise in passenger load factor to 70.5 per cent from 70.1 per cent a year ago.

SIA said the higher passenger traffic was part due to the Hari Raya holidays taking place in July this year, unlike in 2013 when the holiday period fell in August.

Looking ahead, SIA said the operating environment remains challenging. "Capacity will be adjusted accordingly to better match market demand and promotional activities shall continue in markets that require additional support," it said.

SIA's overall load factor, which takes into consideration cargo carried relative to capacity, was also higher last month, hitting 69.8 per cent compared with 69 per cent in the same month last year.

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TATA SIA names its new airline Vistara

India's newest airline announced on Monday (Aug 11) flights could begin as early as October, saying it was "bullish" about the future even as a rival carrier reported a big loss.

The new airline, to be called Vistara - a Sanskrit word meaning "limitless expanse" - is 49 percent-owned by Singapore Airlines, while the Mumbai-based Tata conglomerate controls 51 percent.

The airline will offer both business and economy class, new chief executive Phee Teik Yeoh told reporters in New Delhi, and hoped to start flying passengers "sometime in October", subject to approval by India's Directorate General of Civil Aviation (DGCA).

The previous Congress government began allowing foreign airlines to buy up to 49 percent stakes in Indian carriers in 2012. India's air passenger market has expanded at breakneck speed but many companies are laden with debts and beset by cut-throat fare wars, high fuel costs and shoddy infrastructure.

India's second-biggest carrier by passengers, Jet Airways, reported on Monday it lost 2.2 billion rupees (US$36 million) in the three months to June 30. The figure was down from the 3.55 billion-rupee loss Jet reported in the same quarter a year ago after it cut financing costs, but the performance underscored entrenched problems facing the sector.

The Centre for Asia Pacific Aviation consultancy estimates the industry will lose US$1.3-1.4 billion in the financial year to March 2015 after losing US$1.7 billion in 2013-14.

IndiGo, India's largest passenger carrier, is the sole airline among the four biggest currently operating to consistently report profits. Kingfisher, another full-service airline owned by liquor tycoon Vijay Mallya, was grounded by huge losses in 2012.

But Vistara's new chief executive projected a strong future for the new carrier thanks to India's fast-growing middle class. "The Indian aviation sector is on the cusp of change," he said, saying the company was "very bullish about the future" thanks to low air-travel penetration in the country of 1.25 billion.

Air trips per person each year in India stand at just 0.07, far behind developed countries such as the United States with 2.49 air trips annually.

Vistara will take delivery of its first plane, an Airbus A320-200, in September, and will have five aircraft by December. It plans to increase its fleet to 20 by the end of its fifth year in business.

The Tata Group, which launched India's first civilian airline - later nationalised - announced its partnership with Singapore Airlines 11 months ago. Tata also holds a stake in an Indian low-cost carrier which started flying in June, operated by Asia's biggest budget airline AirAsia.

Tata said it believed there would be no conflict in holding stakes in two Indian airlines. "AirAsia is a low-cost carrier, Vistara is a full-service carrier - they are in different spaces," said Tata Group spokesman Mukund Rajan.

Dr Rajan, member of the Group Executive Council and Brand Custodian at Tata Sons, and director at TATA SIA Airlines Limited (TSAL), said: “All of us at Tata are extremely pleased to have witnessed the coming together of all the elements that have led to the realisation of Vistara, a long cherished dream for the group that pioneered civil aviation in the country.”

Commenting on the significance of SIA operating in India along with Tata, Mr Swee Wah Mak, executive vice-president commercial at SIA, and director at TSAL, said: “From a global investor’s perspective, the Indian aviation sector has a lot of potential for growth and I am delighted that SIA now has a fruitful role to play here.”

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SIA Q1 profit falls 71.3%, flags weak outlook

Singapore Airlines, Asia’s second-largest carrier by market value, reported a 71.3 per cent fall in its fiscal first-quarter net profit, as intense competition for passengers and cargo squeezed yields and its share of profits from associated companies dropped, mainly because of losses at Tiger Airways.

“Looking at the competition and what is coming in terms of capacity, we think that the next 1-2 years will continue to exert pressure on yields. We will have to manage our costs better, including fuel costs, in order to stay competitive,” SIA chairman Stephen Lee said on the sidelines of the company’s shareholders’ meeting today (July 30).

Five analysts have a “sell” rating on SIA, six rate it as a “buy” and 10 have a “hold” recommendation.

Battling intense competition from Gulf airlines and discount carriers, SIA Chief Executive Goh Choon Phong is pushing Singapore’s flag carrier into new markets including India, while increasing the group’s exposure to the low-cost segment through Tiger and its fully-owned subsidiary Scoot.

An overcapacity in the global air freight market is also hitting SIA, whose cargo unit still reported an operating loss.

Net income in the three months ended June was S$34.8 million, compared with S$121.8 million a year earlier, SIA said. Sales dropped 4.1 per cent to S$3.68 billion.

SIA, facing increased competition from budget airlines and Middle East carriers such as Emirates that are expanding into Asia, took a loss of S$18.9 million from associated companies, mainly from Tiger, in the quarter, compared with a loss of S$2.9 million a year earlier, according to the statement.

Tiger, which is 40 per cent owned by SIA, earlier this month reported a loss of S$65.2 million in the quarter ended in June, widening from a S$32.8 million loss a year earlier. The budget carrier plans to put more focus on growing its overseas business and ground eight planes to help revive the business after losing money for three straight quarters.

Travel demand to Thailand has eased since the May imposition of martial law while the two crashes involving Malaysian Airlines planes threaten to slow visitor arrivals to the Southeast Asian region.

“This sector has got far, far too much outside its own ability to control,” said Mr Credit Suisse analyst Timothy Ross. “There’s going to be weaknesses in Southeast Asia, where we’ve seen Thailand impact travel demand. The ongoing difficulties that Malaysian Airlines is having probably rubbed off a little bit for travel demand in the region.”

Operating profit dropped 52 per cent in the first quarter as growing competition hurt ticket prices. The airline’s passenger yield, or the money earned from carrying travellers one kilometre, fell to 10.9 Singapore cents from 11.1 cents a year earlier, while cargo yield rose to 33 cents from 32.7 cents.

Cost of fuel, the airline’s biggest expense, fell 4.7 per cent to S$1.37 billion.

The airline gained S$20.4 million from fuel hedging in the quarter, compared with a loss of S$42.8 million, it said.

Passengers carried by SIA rose 1.7 per cent to 4.65 million in the quarter and the carrier filled 77.7 per cent of available seats. It packed 278.5 million kilograms of cargo, 0.4 per cent more than a year ago, and filled 62.4 per cent of space.

“Aggressive fares and capacity injections from competitors will continue to place pressure on yields,” SIA cautioned. “The outlook for the air transportation industry has become more challenging with continuing uncertain global economic climate, geo-political concerns in the region and elevated fuel prices,” SIA added.

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SIA aims to cut pilot training time from 3 years to 2

Future Singapore Airlines (SIA) cadet pilots can expect to graduate in two years instead of three, and with skills that should better prepare them for actual flight operations.

The airline has carried out a detailed study on a new multi-crew pilot licence (MPL) programme and is now preparing for a field test.

Unlike the conventional training method, the new teaching programme focuses on simulator experience and multi-crew operations, instead of solo flying.

The plan is for the bulk of the training to be done in Singapore, instead of at SIA's facilities in Australia where cadets currently spend much of their time.

The field test will start soon and involve up to eight new SIA cadets. Those already being trained will not be affected.

SIA spokesman Nicholas Ionides told The Straits Times: "As cadets are immersed early on into the airline environment, the training provided is more airline specific, equipping cadets with the relevant skills to operate in the cockpit of a multi-crew airliner."

Currently, cadets who graduate from the flight academy need to be trained in multi-crew cooperation skills before moving to the aircraft they will be flying.

It takes about three years for the full training to be completed.

SIA is proposing a 24-month plan for its new training programme which must first be approved by the Civil Aviation Authority of Singapore. A spokesman said it is reviewing details of SIA's trial.

So far, budget carrier Tigerair is the only Singapore airline to have been given the green light to conduct multi-crew pilot licence training.

Approved by the International Civil Aviation Organisation in 2006, the new programme is backed by global carriers represented by the International Air Transport Association.

More time spent in flight simulators, and on equipping trainees with interpersonal and communication skills, better prepares them to operate in a multi-crew environment, experts say.

They believe that simulators allowing airlines to put their trainee pilots through many different incidents and scenarios are also more relevant to commercial flying than hours spent in a single-pilot plane.

Captain Mok Hin Choon, president of the Air Line Pilots Association - Singapore, said that while total training time will be cut, he is certain SIA will work closely with the regulator to ensure that safety and other standards are met.

Calling it a step in the right direction, he said: "It makes sense to get trainees accustomed to teamwork and the dynamics of two-man operations instead of a focus on solo flying, the relevance of which in commercial aircraft operations may be questionable."

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Typhoon Rammasun causes SIA plane to hit aerobridge

Singapore Airlines (SIA) confirmed that one of its aircraft parked at the Manila International Airport "came into contact" with an aerobridge due to strong winds from Typhoon Rammasun on Wednesday (July 16).

Responding to queries by Channel NewsAsia, a SIA spokesperson said: "There were no passengers or crew on board at that time and our engineers will assess the aircraft when weather conditions permit.

Alternative travel arrangements are being made for those who were affected as well. "Passengers who are booked on SQ915 for July 16 will be accommodated accordingly in order to minimise disruption to their travel plans," the spokesperson said.

Twitter user @raoulesperas posted an image, and stated that the left wing and engine of the plane were damaged though.

Typhoon Rammasun, locally known as Glenda, caused the Philippine capital to shut down on Wednesday, and authorities said the typhoon claimed at least one life and forced hundreds of thousands to evacuate. Wind gusts of up to 250 kilometres an hour (km/h) were recorded, and intense rain affected those in the city as well as remote fishing villages after the typhoon blew in on Tuesday night.

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SIA carried more passengers in June

Singapore Airlines (SIA) carried more passengers in June on the back of higher demand for its East Asia and South West Pacific routes. The Singapore flag carrier announced on Tueday (July 15) that the number of passengers it carried in June increased by 0.9% year-on-year to 1.6 million.

However, SIA's system-wide passenger carriage - as measured in revenue passenger kilometres - fell 1.4 per cent amid a 1.3 per cent decline in capacity in the same month. This resulted in SIA's passenger load factor for the month to remain unchanged at 81.5 per cent.

Looking ahead, the airline said the operating environment is expected to remain challenging. SIA says it will adjust capacity to better match market demand and continue promotional activities in markets that require additional support. However, it adds that this will likely put downward pressure on yields.

As for SilkAir, systemwide passenger carriage increased 2.3 per cent year-on-year against 3 per cent growth in capacity. As a result, the passenger load factor decreased by 0.5 percentage points to 72.7 per cent.

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