Singapore Airlines 2007 Annual Report Download - page 11

Singapore Airlines 9 Annual Report 2006-07
However, growth in capacity was constrained during
the year, because of further delays to the deliveries of
the new Airbus A380s. Our people responded to the
challenge by working hard to achieve growth, in revenue
and passenger numbers, considerably higher than the
additional capacity we were able to add. That meant
fi lling more fl ights and paying close attention to yield
improvement, while still ensuring we responded to the
competitive position in the market – especially in
South-east Asia.
The achievement of good results and improvements
in the operating performance of the Group required
concerted effort from all the staff across the Airline, as
well as the subsidiary companies. A lot of effort was
undertaken during the year to build stronger working
relationships between management and the workplace
unions. I am particularly proud of the efforts of all who
contributed to this result.
One of many attributes that our competitors will fi nd hard
to copy or replicate is the bond between management
and our people. There is good understanding from
our unions, and their leaders and members, of the
competitive pressures we must face. And management
benefi ts from the increased engagement of unions in
meeting those challenges. A new union-management
partnership, developed during the last year, is built on
those principles. I am pleased that the Group, and its
unions, are playing an active and leading role in the
Labour Movement for 2011 programme, and addressing
challenges which will strengthen our labour relations and
contribution in future years.
The Environment
On top of constantly facing high fuel prices and other
threats, our industry has become a target of the
environmental lobby, especially in Europe.
It is an undeniable fact that aircraft emit so-called
greenhouse gases, and create noise. However, it
is important that the pollution impact be kept in
perspective.
The aviation industry must continue to improve its
environmental performance. Singapore Airlines will
adhere to its policy of maintaining a young and modern
fl eet of the quietest, and most fuel-effi cient, aircraft to
ensure we stay at the cutting edge of improvement.
Further, we will push our suppliers – especially aircraft
and engine manufacturers – to continue the quest for
improvements. And we will work with governments
around the world to open more direct fl ight routes, to
reduce fuel consumption and emissions.
Global problems require properly-considered global
solutions. That’s why we have reservations about regional
emissions trading schemes and state-based carbon taxes.
Solutions should not merely dampen demand for travel;
and they must recognise efforts of those who quickly
integrate new technology, with the environmental
benefi ts that brings.
In Closing
I would like to thank my fellow directors for their
commitment to the Company during the year in review.
We bid farewell to two long-serving directors this year
– Davinder Singh and Ho Kwon Ping. Messrs Singh and
Ho have made solid contributions to the Board over the
years, and they will be missed. I thank them for their
efforts.
We were fortunate to welcome David Gonski and
Euleen Goh to the Board this year, and like all our
colleagues, shareholders can be pleased with the
determination of the Board to continue to work hard
and deliver good returns on your investments.
In addition to recognising the commitment of our staff to
delivering a very strong result, I would like to thank our
many loyal customers for their continued support and
business over this past year. As we roll out new products
and services, they will see the evidence that Singapore
Airlines will never give up in the constant race to remain
the world’s premium airline.
Stephen Lee
Chairman