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23 SIA annual report 00/01
SIA Cargo introduced several new
freighter services in October and
November 2000, adding Jakarta, Osaka
and Penang to the freighter network.
During the same period, freighter
frequency was increased to Bangalore,
Chennai, Copenhagen, Dublin, Paris,
Los Angeles and San Francisco. Earlier in
the year, frequency to Amsterdam was
also increased.
To build upon this growth, SIA Cargo will
become incorporated as an independent
subsidiary in July 2001. The increased
independence will allow management
to react more quickly to market forces
and consolidate SIA Cargo's position as
the world's third largest air cargo carrier
in terms of international freight-tonne
kilometres flown.
SUBSIDIARIES AND ASSOCIATED
COM PANIES
SIA Engineering Company (SIAEC)
In January 2001, SIAEC announced
plans to invest $80-90 million in another
two new maintenance hangars at Changi,
subject to it being able to secure the
necessary sites from the authorities. These
two hangars, due to be completed in
2002 and 2003, will be able to
accommodate the 'super jumbo' A380
aircraft and will add a further 30 per cent
capacity. Their construction is in line with
SIAEC's plan to be a maintenance, repair
and overhaul centre for the A380.
A ground breaking ceremony for a
$25 million single bay hangar (including
land cost) was held in the same month.
The 85-metre wide facility is due to be
operational in July 2001 and will be able
to accommodate B747, B777 and A340-
500/600 aircraft.
SIAEC continued to enter into joint
ventures with well-established aerospace
companies. In July 2000, it paid US$8
million for a 40 per cent stake in Messier
Services Asia, a Singapore-based landing
gear repair and overhaul facility. This was
followed in November by the signing of
a joint venture agreement with United
Technologies Holdings (Singapore) Pte Ltd
and Singapore Technologies Aerospace to
form Turbine Coating Services Pte Ltd, an
engine-part repair joint venture. SIAEC
will take a 24.5 per cent share worth
US$3.2 million.
In March 2001, SIAEC paid US$15 million
to acquire a 30% stake in BFGoodrich
Aerostructures & Aviation Services Group's
wholly-owned subsidiary, Rohr Aero
Services-Asia (RASA), which repairs and
overhauls aircraft nacelles, thrust reversers
and composite structures. SIAEC has an
option to acquire a further 10% equity
share of RASA, subject to certain conditions.
These investments increased the number
of SIAEC joint ventures to 15.