Singapore Airlines 2002 Annual Report Download - page 46

Financial Review
SIA Annual Report 01/02
46
Performance of subsidiaries (continued)
SIA Engineering Group (continued)
The Group’s taxation increased $15.9 million (+118.7%) over FY 2000-01, a result of an increase in the provision for deferred tax arising
from timing differences relating to fixed assets, and additional tax from the increase in share of profits of associated companies and joint
venture companies.
The increased investment in Singapore Jamco Pte Ltd, from 51% to 65%, gave rise to a pre-acquisition profit of $0.1 million. There were
no gains or losses arising from disposals of investments.
Capital expenditure was $47.2 million, mainly on the third hangar, and engineering plant and equipment.
Singapore Airlines Cargo
Singapore Airlines Cargo began operations as a full-fledged cargo airline on 1 July 2001. It operates 11 B747-400 freighters, and
exclusively markets the bellyhold space of the entire passenger aircraft fleet of SIA. It’s network spans 71 destinations in 38 countries
across 5 continents.
For the 9 months ended March 2002, SIA Cargo incurred an operating loss of $39.7 million compared to a surplus of $41.8 million for
the same period last year R1. In its first quarter ended September 2001, the Company suffered an operating deficit of $61.8 million, an
outcome of the slower economic activity in major economies and lower output from the electronics manufacturing sector. Subsequent
months showed significant improvement in performance. The Company recorded a surplus of $22.1 million for the period October 2001
to March 2002.
Total revenue fell 1.6% (–$24.9 million) to $1,577.2 million. This was primarily attributed to a 6.4% fall in yield and a 0.2% drop in load
carried. Load factor decreased 0.9% point to 68.5%.
Total expenditure rose 3.6% (+$56.5 million) to $1,616.9 million mainly from higher depreciation costs (+$34.5 million) and handling costs
(+$16.6 million).
Unit cost increased 2.1% to 23.8¢/ctk while breakeven load factor went up 6.2% points to 74.2%.
During the year under review, Singapore Airlines Cargo took delivery of 2 B747-400 freighters, which increased the fleet size to 11
B747-400 freighters.
Shareholders’ funds as at 31 March 2002 stood at $1,360.8 million.
R1 Figures for July 2000 - March 2001 are based on SIA’s Cargo Division’s profit-centre accounts.
SilkAir
SilkAir made an operating profit of $17.0 million in 2001-02 against a loss of $6.5 million the previous year. Profit after tax was $17.5
million, after accounting for a profit of $1.2 million from the sale of shares in Equant N.V. and surplus from sale of spares of $1.8 million.
Revenue from scheduled services increased $15.9 million (+9.3%) to $186.4 million as traffic rose 11.5%. Overall load factor was down
3.7% points to 49.4% as traffic increased (+11.5%) at a slower rate than that of capacity (+19.8%). Yield declined 2.0%.
Expenditure was $3.3 million lower (–1.8%) at $181.4 million, mainly because of lower aircraft maintenance and overhaul costs, nil
provision for profit-sharing bonus and a change in aircraft depreciation rate. These were partially negated by higher costs of handling,
landing and parking, insurance and licence fees.
Unit cost dropped 12.8% to 71.1¢/ctk and breakeven load factor improved 6.0% points to 48.1%.
Shareholders’ funds grew 10.8% to $281.9 million at 31 March 2002 (last year’s shareholders’ funds were restated because of new and
revised Statement of Accounting Standards).
Capital expenditure was $107.0 million, principally on the purchase of one A319 and one A320 passenger aircraft delivered during the
year, and spare parts.
SilkAir’s route network links 21 cities in 9 Asian countries.