Asian Perspective

摘要

SIA Cargo is the carrier's sore thumb: Following publication of the latest financial results from Singapore Airlines, informed sources in the Lion Republic suggest a shake up at the flag carrier's cargo division is in the offing. The company as a whole saw profits for the second quarter slide 32.6% to US$332 million despite increasing revenues by 10.4%. SIA blamed weak consumer confidence and rising fuel bills for the drop. Noticeable though was that while every other division of the company remained in the black, SIA Cargo swung into the red. The divisional result fell from a S$19m profit to a US$12 million loss. "Worse is still to come, and we may well see a considerable change of tactics and personnel in the division come 2009," said a source connected to the company. Action is being taken to mitigate losses with route reductions and the announcement last month that SIA Cargo will use Pratt & Whitney Global Service Partners for a US$228 million fleet management and service contract. During the first half, the group as a whole took delivery of three A380-800s and four 777-300ERs, and decommissioned four 747-400s. As of September 30, the operating fleet comprised 101 aircraft, including fourteen 747-400Fs.