Singapore Airlines 2004 Annual Report Download - page 24

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Subsidiaries
and Associated
Companies
SIA Engineering Company (SIAEC)
On 24 February 2004, SIAEC announced
that it would be investing up to $120
million to expand its airframe
maintenance capacity at Singapore
Changi Airport, which would include
the construction of two new hangars
equipped to handle the latest jets, such
as the A340-500. Hangars 4 and 5 will
increase SIAEC’s airframe maintenance
capacity by 30 per cent and enable the
Company to capture a larger slice of
the global maintenance, repair and
overhaul (MRO) business. Up to 800
new engineers, technicians and support
staff will be recruited and receive
intensive training to acquire the skills
and license coverage on new-generation
aircraft such as the A340-500 and A380.
SIAEC welcomed new customers
Air Europe, Air Pacific, Air Paradise,
Air Plus Comet, China Eastern Airlines,
China Northern Airlines, Debis Air
Finance, Dubai Air Wing, Global Supply
Systems, Iberia, Islandsflug, Northwest
Airlines and Pegasus to its airframe
maintenance, component overhaul
and fleet management programmes.
The latter programme provides
customers with high value-added
services, such as fleet and inventory
technical management.
Singapore Aircraft Leasing Enterprise
(SALE)
Celebrating the 10th Anniversary of its
establishment, SALE continues to
demonstrate its ability to compete with
the best in the global leasing market.
Altogether, the Company took
delivery of seven new Airbus A320 family
aircraft during the year, all of which were
placed with airlines on delivery. In
addition, the Company acquired five
more new single aisle aircraft through
purchase and leaseback arrangements
with airlines. These included four Boeing
737-700 Next Generation aircraft,
reflecting further diversification of the
Company’s portfolio.
Despite a difficult aircraft trading
environment, SALE successfully completed
the profitable sale of one A321 and its
last A310-200 during the year, as well as
the sale of an A320 simulator.
At year-end, the SALE portfolio
comprised 55 modern aircraft flying with
29 airlines worldwide, with 19 more on
firm order for delivery through to 2007.
The Company’s fleet remains one of the
youngest in the leasing industry, with an
average age of just five years.
SilkAir
On 5 January 2004, Mr Mike Barclay,
formerly SIA’s General Manager in
Germany, succeeded Mr Subhas Menon
as Chief Executive. Mr Menon is now
SIA’s Regional Vice-President for the
Americas, based in Los Angeles.
Like its parent, SilkAir was severely
affected by the SARS outbreak and was
forced to cut capacity by an average of
20 per cent between April and September
2003. Services on the affected routes
were gradually reinstated as fears of
SARS receded and confidence in the
travel industry was restored.
22 SIA Annual Report 03/04