Table of Contents
1. Corporate Overview
Headquartered in Singapore, Singapore Airlines Ltd. (SIA) is a passenger and cargo airline.
1.1 Corporate History
Established as Malayan Airways in 1937, SIA began its scheduled service in May 1947.
1.2 Key Facts
Revenue for 2005 stood at US$7.17 billion
1.3 Subsidiaries/Affiliates
List of its Subsidiaries and Affiliates
1.4 Organizational Chart
1.5 Profiles of Key People
Stephen Lee Ching Yen (Chairman) was appointed as the Chairman of SIA in Oct 2005.
1.6 Recent Developments
Singapore Airlines Starts Flights to Abu Dhabi.
2. Business Description
2.1 Business Segments
Airline Operations, Airport Terminal Services, Engineering Services and others.
2.1.1 Products/Services
Airline Operations
Airport Terminal Services
Engineering Services
Cargo Services
2.2 Geographical Segmentation
East Asia is SIA’s largest geographical market, accounting for 29.6% of the total revenues by route region in FY05.
2.3 Key Partnerships/Alliances
3. SWOT Analysis
3.1 Strengths
Continuous Innovation
The USP of In-Flight Experience
Young Fleet of Aircraft
3.2 Weaknesses
Decline in Load Factor
Weak Presence in Low budget airlines Segment
3.3 Opportunities
Weak Presence in Low budget airlines Segment
Increase in East-Bound Cargo
3.4 Threats
Outbreak of Pandemics
Rising Crude oil prices
4. Key Business Strategies
5. Financial Performance
5.1 Financial Highlights
For Q3 FY06, the revenues were pegged at US$2.1 billion, with year on year (y-o-y) growth of 9% over Q3 FY05.
5.2 Five-Year Financial Summary
5.3 Ratio Analysis
Singapore Airlines witnessed a rise in its profitability margins in the financial year 2004-05.
5.4 Market Indicators
5.4.1 Stock Chart
The stock performance of the company has demonstrated significant improvement over the 52 weeks.
5.4.2 Earnings Estimates
The company’s operating income is expected to rise in the future as well. These estimates seem probable as a result of the company’s expansion plans.
6. Competitive Landscape
6.1 Industry Overview
6.1.1 Industry Definition and Segmentation
Air Cargo Services
Air Traffic Control Services
Airlines
Airport Management Services
Charter & Other Nonscheduled Airplane Passenger Services
6.1.2 Key Drivers
Emerging Economies
Booming Travel & Tourism Sector
Deregulation Facilitates Liberalization of Routes
Outsourcing Boosts Cargo Demand
Technology Revamping Airline Operations
6.1.3 Major Trends
Steady Growth in the Demand for Air Travel
More Strategic Alliances
Strong Focus on Cost Reduction
Low-Cost Carrier Expansion
6.1.4 Outlook
6.2 Competition
Air France, AMR Corp. and UAL Corp. are the three largest companies in the global airlines industry.
6.2.1 Competitive Positioning- All Nippon, Qantas, Vietnam
6.2.2 Geographical Coverage
Qantas Airways and Singapore Airlines are the leading players in the Asia-Pacific region.
6.2.3 Client Base
All Nippon, Qantas, Vietnam
6.3 Financial Assessment
Revenue, Income and Ratio comparison vis-’-vis the competitors
6.4 Stock Market Performance
Singapore Airlines’ highest annual return was 24.6%.
7. Outlook
7.1 Company View
The outlook for SIA’s airline operations in 2006 is encouraging, given the sound economic outlook for the major markets.
7.2 Analyst View
Over the years, SIA’s passenger profitability has remained strong.
Appendices
Appendix 1 Income Statement, 2001-2005
Appendix 2 Balance Sheet. 2001-2005
Appendix 3 Mergers & Acquisitions, 1999-2005
Appendix 4 Glossary
List of Tables/Figures
Table 1.1 Key facts
Table 1.2 Subsidiaries/Affiliates
Table 1.3 Profiles of Key People
Table 1.4 Recent Developments
Table 1.5 Subsidiaries/Affiliates, 2000-2005
Table 1.6 Recent Developments, 2005-2006
Table 2.1 Product Wise Revenue Mix, 2005
Table 2.2 Key Partnerships & Alliance, 2005-2006
Table 2.3 List of SIA’s Joint Ventures
Table 5.1 Financial Highlights, Q305- Q306
Table 5.2 Five-Year Financial Summary, 2001-2005
Table 6.2 China Air-Transport Growth
Table 6.3 Airline Industry: Mergers, Acquisitions, And Alliances (Since 2000)
Table 6.4 Traffic Growth by Regions of the World
Table 6.5 Top-15 Players in the Global Airline Industry
Table 6.6 Competitive Positioning- All Nippon, Qantas, Vietnam
Table 6.7 Client Base-All Nippon, Qantas, Vietnam
Table 7.1 Proposed Capacity Increase
Figure 1.1 Company Timeline
Figure 1.2 Organizational Chart
Figure 2.1 Revenue by Business Segments, 2005
Figure 2.2 Revenue Composition by Route Region, 2005
Figure 3.2 Jet Fuel Prices, 1998-2005
Figure 5.1 Profitability Ratio, 2004-2005
Figure 5.2 Performance Ratio, 2004-2005
Figure 5.3 Stock Performance (January 31st, 2005 to February 28th, 2006)
Figure 5.4 Estimated Sales, 2005-2008
Figure 5.5 Estimated Net Profit, 2005-2008
Figure 6.1 World Travel & Tourism Total Demand (1990 Constant)
Figure 6.2 YoY Change in Cargo Revenue of Leading Airlines in Asia Pacific Region (H104-H105)
Figure 6.3 World Air Traffic, 1990-2005
Figure 6.4 World Air Travel Growth, 2005-2024
Figure 6.5 Projected Traffic & Economic Growth by Region (2005-24)
Figure 6.6 World Air Freight Traffic:1999-2009F
Figure 6.7 World Fleet-2004 & 2024
Figure 6.8 Geographical Revenue Segmentation, 2005
Figure 6.9 Revenue, 2004
Figure 6.10 Net Income, 2005
Figure 6.11 Performance Ratio, 2005
Figure 6.12 Debt Equity Ratio, 2005
Figure 6.13 Market Capitalization (as on February 28 2006)
Figure 6.14 Stock Performance - March 31, 2005 to February 28, 2006
Figure 7.1 Cargo Load Factor, Cargo Yield, 2003-2008
