Singapore Airlines 2002 Annual Report Download - page 9

Internationally, there is no denying that our mission to expand abroad has faced difficulties, but we
have always known the path would not be easy. Restrictions on air traffic rights continue to be a given.
Governments continue to support and subsidize their flag carriers. Equity ownership restrictions
mean that a stake in another airline often comes without meaningful management control. We
continue to argue for the liberalization of these regulatory hurdles and for more open and free
competition among carriers, but until that happens, we will take these realities in our stride.
In the long run, we cannot rely solely on operations based in Singapore. In order to have continuing growth and
profit, it is important for us to expand beyond our home base. Therefore, we will continue to look at international
expansion opportunities as they arise, since these tend to happen only with liberalization and regulatory changes.
We will also explore and develop joint activities with other airlines where they make sense. At the same time, we
shall continue our organic growth whenever and wherever possible within the international restrictions placed on
us. As mentioned earlier, we will soon begin a new service to Las Vegas. We have also recently started three extra
weekly services to Tokyo, and a new air services agreement with China opens up more possibilities for us to expand
our future capacity into this growing market.
Apart from the Airline, other members of the SIA Group have also worked through a demanding year and have emerged
with strong records of development and achievement.
SIA Engineering Company (SIAEC) has, in the past year, grown its airframe maintenance capacity by 15 per cent with
the opening of a third hangar at Changi Airport last October. Plans are under way for the construction of two additional
single-bay maintenance hangars to be ready by 2003 and 2004. Last year, SIAEC also started a new joint venture
for engine overhaul, Singapore Aero Engine Services Limited (SAESL). It continues to look for expansion opportunities
overseas, particularly in the fast-growing China market.
Another member of the SIA Group, Singapore Airport Terminal Services (SATS), has also had a year of expansion.
This year, it started operations at SATS Airfreight Terminal 6, adding 800,000 tonnes of cargo capacity per annum –
bringing its total capacity to 2.3 million tonnes. It opened SATS Express Courier Centre 2 to handle 180,000 tonnes
of express cargo capacity per annum. As part of its expansion, SATS has also started Aerolog Express Pte Ltd, a
new joint venture subsidiary, to provide cargo delivery services from SATS airfreight terminals in Singapore, opened
a joint venture cargo warehouse operation in Taipei, and begun a new joint venture to provide inflight catering operations
at six airports in India.
Finally, I wish to thank everyone in the SIA Group for their efforts, sacrifices and dedication during the past financial
year. I also wish to thank my predecessor, Dr Michael Fam, and other members of the SIA Board, who have steered
the Airline through a most difficult period.
Koh Boon Hwee
Chairman
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