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ANNUAL REPORT 2007-08

Table of contents

  • Page 1
    ANNUAL REPORT 2007-08

  • Page 2
    ... a total dividend for the year of $1.00 per share. The highlight of the year in review was the entry into service of the world's largest passenger aircraft, the Airbus A380. Singapore Airlines is the first airline in the world to operate this new plane, which has won accolades from customers and...

  • Page 3
    ... Board Of Directors ...04 Chairman's Letter To Shareholders ...08 Corporate Data ...10 Significant Events ...12 The Year In Review ...13 Network Development ...14 Fleet Management ...16 Singapore Airlines: First To Fly The A380 ...18 Products And Services ...20 Awards And Accolades ...26 Supporting...

  • Page 4
    ... equity holders of the Company Return on equity holders' funds (%) R2 Return on equity holders' funds (%) R2 Total assets Total assets debt Total Total debt equity ratio (times) R3 Total debt Total debt equity ratio (times) R3 Value added Value added Per Share Data Earnings before Per Share Data tax...

  • Page 5
    ... capacity = Cargo unit cost expressed as a percentage of cargo yield. This is the theoretical load factor at which (in tonne-km) revenue equates to the operating expenditure (including expenditure Singapore Airlines) = cargo Cargo unit cost expressed as a percentage of cargo yield. bellyhold This...

  • Page 6
    BOARD OF DIRECTORS BOARD OF DIRECTORS Singapore Airlines Annual Report 2007-08 4

  • Page 7
    From left to right: Stephen Lee Ching Yen; Chew Choon Seng; Chia Pei-Yuan; Euleen Goh Yiu Kiang; David Michael Gonski; James Koh Cher Siang; Christina Ong; Sir Brian Pitman; Lucien Wong Yuen Kuai Singapore Airlines Annual Report 2007-08 5

  • Page 8
    ...and overseas. Mr Chew has been a member of the Board of Governors of the International Air Transport Association (IATA) since June 2003. He was named Outstanding CEO for 2007 by the judges of the 23rd Singapore Business Awards in March 2008. Age 61. senior management positions in Standard Chartered...

  • Page 9
    James Koh Cher Siang Director Appointed Director on 1 August 2005. Mr Koh is Chairman of Housing and Development Board and Singapore Deposit Insurance Corporation Limited. From 1997 to 2005, he was Chief Executive Officer of the Inland Revenue Authority of Singapore. In that capacity, he was both ...

  • Page 10
    ...-London routes. The long, hard work by thousands of people across the Singapore Airlines Group, as well as our suppliers and vendors, to plan for the aircraft's delivery and operation paid off: the A380 has enjoyed the smoothest entry into service of any new aircraft to date. On board, the cabin...

  • Page 11
    ... network. Singapore Airlines added one new city to the network - Houston. Additional ï¬,ights were added to Barcelona, Milan, Moscow, Paris and Zurich, to bring the Airline's weekly schedule of ï¬,ights to Europe to 93. Nearer to home, frequencies to cities in Vietnam and India were added. SilkAir...

  • Page 12
    ... 31 July 2007) COMPANY SECRETARY Ethel Tan SHARE REGISTRAR M & C Services Private Limited 138 Robinson Road #17-00 The Corporate Office Singapore 068906 AUDITORS Ernst & Young Certified Public Accountants One Rafï¬,es Quay North Tower #18-01 Singapore 048583 AUDIT PARTNER Kevin Kwok (appointed...

  • Page 13
    ... President Human Resources Yap Kim Wah Senior Vice President Product and Services Ng Chin Hwee President and Chief Executive Officer Singapore Airport Terminal Services Limited (until 31 December 2007) Goh Choon Phong President Singapore Airlines Cargo Pte Ltd Singapore Airlines Annual Report...

  • Page 14
    .... The new Singapore Airlines Suites product is unveiled to outstanding reviews. The Singapore Airlines A380 takes off on the world's inaugural A380 ï¬,ight, SQ380, from Singapore to Sydney. Scheduled A380 service on the Singapore-Sydney route starts. The Group posts a profit attributable to equity...

  • Page 15
    ... THE YEAR IN REVIEW Singapore Airlines achieved a profit attributable to equity holders of $2,049 million for the financial year ending 31 March 2008. The year marked the long-anticipated entry into service of the world's largest passenger plane. The first A380 took off from Singapore to Sydney...

  • Page 16
    ... OF TIGHTER CAPACITY GROWTH, CAUSED BY DELAYS TO THE DELIVERY OF NEW AIRCRAFT, SINGAPORE AIRLINES CARRIED MORE CUSTOMERS THAN EVER BEFORE. NEW CABIN PRODUCTS POSITIONED THE AIRLINE WELL TO MEET THE DEMANDS OF PREMIUM TRAVELLERS ACROSS ITS NETWORK. Singapore Airlines Annual Report 2007-08 14

  • Page 17
    ... DEVELOPMENT Singapore Airlines added Houston as a new destination to its expanding global network, during the year in review. The four-times weekly service via Moscow started in March 2008, boosting the number of weekly passenger ï¬,ights between Singapore and the USA to more than 50. The routing...

  • Page 18
    OPERATING REVIEW THE ENTRY INTO SERVICE OF THE NEW AIRBUS A380, AND DELIVERIES OF MORE BOEING 777-300ERS, HELPED SINGAPORE AIRLINES MAINTAIN ITS POSITION AS AN INNOVATOR, OPERATING THE YOUNGEST, MOST MODERN AND FUEL-EFFICIENT AIRCRAFT IN THE WORLD. Singapore Airlines Annual Report 2007-08 16

  • Page 19
    FLEET MANAGEMENT Three new Airbus A380 aircraft were delivered during the year in review. Singapore Airlines is the first to ï¬,y the A380, and currently the only airline in the world operating the aircraft. As the first to operate the largest and most technologically advanced passenger plane ever...

  • Page 20
    ... A380 made its first-ever commercial ï¬,ight. Singapore Airlines ï¬,ight SQ380 took off from Singapore Changi Airport at 8am on a sunny October morning for Sydney International Airport. Smooth ï¬,ying conditions ensured a very happy occasion for all on board. Singapore Airlines Annual Report 2007...

  • Page 21
    ... and its cabin products are well received by customers. By the end of the year in review, almost 200,000 customers had ï¬,own on the Singapore Airlines A380. At the end of the year in review, three Singapore Airlines A380s have been put into service. Singapore Airlines Annual Report 2007-08 19

  • Page 22
    OPERATINGREVIEW OPERATING REVIEW SINGAPORE AIRLINES REDEFINES THE AIR TRAVEL EXPERIENCE, WITH ITS LUXURY CABIN PRODUCTS AND LEGENDARY CUSTOMER SERVICE CONTINUING TO WIN ACCLAIM THE WORLD OVER. Singapore Airlines Annual Report 2007-08 20

  • Page 23
    ...rst. Designed for the most distinguished of customers, Singapore Airlines Suites offers unrivalled privacy and luxury. Each of the 12 Suites is the customer's very own private cabin in the sky in which to work, relax, dine and sleep. Doors can be closed and window screens lowered for greater privacy...

  • Page 24
    ... it was introduced in 2006. Business Class on the A380 also features a Passenger Corner, specially created for these customers to pick up snacks and socialise during long ï¬,ights. NEW SINGAPORE AIRLINES ECONOMY CLASS The new Singapore Airlines Economy Class seat offers greater comfort and ambience...

  • Page 25
    ... and in-seat power supply. GENERAL CABIN AMENITY The Singapore Airlines A380 cabin is spacious and quiet, with special lighting features. Designer touches in the form of cutlery and linen by Givenchy further convey a sense of serenity and relaxation. Singapore Airlines Annual Report 2007-08 23

  • Page 26
    ...of Changi Airport's new Terminal 3 in January 2008. The expansion of operations to include both Terminal 2 and Terminal 3 will help the Airline meet its projected increase in ï¬,ight operations and customer numbers in future years. The Airline's facilities in Terminal 3 include an exclusive check-in...

  • Page 27
    ... members in December 2007. Non-airline partners have also grown. New partners include Maybank, Standard Chartered Bank and Sumitomo-Mitsui. KrisFlyer and Standard Chartered Bank launched the Standard Chartered-Singapore Airlines/KrisFlyer Gold Visa Business Credit Card which is primarily targeted...

  • Page 28
    ...by the number of awards it earns, the Airline's performance is a validation for the new cabin products unveiled on the A380 and B777-300ER aircraft, and the hard work of the staff. During the year in review, Singapore Airlines was named Airline of the Year by Air Transport World and rated Airline of...

  • Page 29
    ... management, engineering maintenance and ground handling, just to name a few. The Airline is also working closely with other safety organisations, such as IATA and AAPA, to promote and enhance ï¬,ight safety. Information and data are exchanged to address common safety issues. Singapore Airlines...

  • Page 30
    ... to the long-standing policy of operating a young and modern ï¬,eet of fuel-efficient aircraft. Singapore Airlines is an early adopter of technology - ordering the A380, the Boeing 787 and Airbus A350, all as an early customer. The year has seen some governments continue to target the aviation...

  • Page 31
    .... Closer to home, efforts are continuing to reduce our consumption of water and energy through smarter work practices and design. The Group continues its detailed environmental reporting with its Environmental Report, available online at singaporeair.com. Singapore Airlines Annual Report 2007-08...

  • Page 32
    ...245 (46.8%) were employed by the Airline, with 7,172 as cabin crew and 2,286 as pilots. DEVELOPING OUR PEOPLE The Airline conducted a second Organisational Climate Survey during the year in review. This is an ongoing process to seek staff feedback on work-related issues and assess the progress made...

  • Page 33
    ... 2007 on re-employment terms for general staff. As at 31 March 2008, the staff strength of SIA Group was 30,438, an increase of 4.8% over the previous year. 14,245 (46.8%) were employed by the Airline, with 7,172 as cabin crew and 2,286 as pilots. Singapore Airlines Annual Report 2007-08 31

  • Page 34
    ... AIRPORT TERMINAL SERVICES LIMITED In FY2007-08, revenue from the Singapore Airport Terminal Services (SATS) Group grew 1.3% to $958 million, because of higher business volumes. Group expenditure declined 1.1% to $783.7 million due to lower employee profit sharing bonus arising from the de-linking...

  • Page 35
    ...overhaul business. For line maintenance at Changi Airport, 21 new contracts were secured. As of 31 March 2008, its Fleet Management contracts cover a total of 109 aircraft, comprising 57 in service and the remaining awaiting deliveries to its customer airlines. Singapore Airlines Annual Report 2007...

  • Page 36
    ... to equity holders of $115.4 million. SINGAPORE AIRLINES CARGO SIA Cargo reported a strong performance, turning around from an operating loss in the previous year, contributing $131.5 million to the Group's operating profit in the year in review. This is the result of effective capacity management...

  • Page 37
    ...Traveler, also rated SilkAir tops in its Annual Readers' Choice Awards 2007, in the poll's Foreign Route category. This award category - introduced for the first time this year - separates and honours carriers that do not have ï¬,ights to U.S. destinations. Singapore Airlines Annual Report 2007-08...

  • Page 38
    ...First฀Class •฀ Asia's฀Best฀Airline฀for฀Business฀Class •฀ Asia's฀Best฀Airline฀for฀Economy฀Class •฀ Asia's฀Best฀Websites฀for฀Online฀Booking •฀ Asia's฀Best฀Online฀Check-in฀Facilities DestinAsian (Hong Kong) Readers' Choice Awards (3rd consecutive...

  • Page 39
    STATEMENT ON RISK MANAGEMENT 1. GROUP-WIDE SYSTEM TO MANAGE RISKS As part of the overall management and governance structure of Singapore Airlines, a formalised Risk Management Framework has been put in place since 2002 to assist the Group in identifying, managing and reporting risks. The ...

  • Page 40
    ...in the Board, with the Nominating Committee considering 7 out of 9 directors to be independent. Mr Stephen Lee is a member of the Advisory Panel of the Company's substantial shareholder, Temasek Holdings (Private) Limited ("Temasek"). Mr Chew Choon Seng is the Chief Executive Officer ("CEO") of the...

  • Page 41
    ...nancial year. The Board holds separate Strategy Sessions to assist Management in developing its plans and strategies for the future. The non-executive Directors also set aside time to meet without the presence of Management to review the latter's performance in meeting goals and objectives. A table...

  • Page 42
    ... Board to review and approve recommendations on remuneration policies and packages for key executives, and administer the Company's EVA-based Incentive Plan, Performance Share Plan and Restricted Share Plan for key senior executives and the Company's Employee Share Option Plan. The award of shares...

  • Page 43
    ... growth for the Company in the changing business environment, and to foster a greater ownership culture amongst key senior management and senior executives. These PSP and RSP contemplate the award of fully paid Shares, when and after pre-determined performance and/or service conditions are met. The...

  • Page 44
    ...Committee and Audit Committee Chairman of other Board Committees, Member of Executive Committee and Audit Committee Member of other Board Committees Attendance Fees Home-city In-region Out-region Teleconference - Normal hours Teleconference - Odd hours Singapore Airlines Annual Report 2007-08 42

  • Page 45
    ...by, Singapore Airlines Limited. No employee of the Group who is an immediate family member of a Director was paid a remuneration that exceeded $150,000 during the financial year ended 31 March 2008. Performance and Restricted Shares granted during the year 2 Variable 1 % Benefits % Total % Number...

  • Page 46
    ...the following: (a) Financial Reporting The AC reviewed the interim and annual financial statements and financial announcements required by SGX-ST for recommendation to the Board for approval. The review focused on changes in accounting policies and practices, major judgmental and risk areas, signi...

  • Page 47
    ... policies. The Risk Management Report can be found on page 37. Communication with Shareholders (Principles 14 and 15) The Company believes in prompt disclosure of pertinent information. It values dialogue with shareholders, and holds analyst and media briefings when announcing half-yearly and year...

  • Page 48
    ... OF SINGAPORE AIRLINES LIMITED BOARD OF DIRECTORS AND BOARD COMMITTEE MEMBERS For the period 1 April 2007 to 31 March 2008 Board Compensation and Industrial Relations Committee Board Name of Director Scheduled Ad-hoc Board Executive Committee Board Audit Committee Board Safety and Risk Committee...

  • Page 49
    ... Company Limited Singapore Airport Terminal Services Limited Government of Singapore Investment Corporation Pte Ltd Singapore Exchange Ltd International Air Transport Association Deputy Chairman Deputy Chairman Director Director Member, Board of Governors Singapore Airlines Annual Report...

  • Page 50
    ... 3 years Company Title 1. 2. 3. 4. 5. 6. International Air Transport Association Singapore Aircraft Leasing Enterprise Pte Ltd Singapore International Foundation Virgin Atlantic Limited Virgin Atlantic Airways Limited Virgin Travel Group Limited Chairman, Board of Governors Chairman Member, Board...

  • Page 51
    ...Pty Limited Art Gallery of New South Wales Trust ANZ Banking Group Limited ING Australia Limited John Fairfax Holdings Limited UNSW Asia The Takeovers Panel Singapore Airlines Annual Report 2007-08 Chairman Chairman Chairman Chairman President Director Director Director Director Director/Member 49

  • Page 52
    ...Singapore Deposit Insurance Corporation Limited Housing & Development Board CapitaLand Limited CapitaLand Hope Foundation Hotel Plaza Limited Singapore Cooperation Enterprise UOL Group Limited Chairman Chairman Director Director Director Director Director Directorships for the past 3 years Company...

  • Page 53
    ... Director Director Director Board Member Board Member Member, Board of Trustees Trustee Directorships for the past 3 years Company Title 1. 2. 3. CapitaLand Limited Mabanaft Singapore Pte Ltd Singapore Technologies Engineering Ltd Director Director Director Singapore Airlines Annual Report...

  • Page 54
    ......161 Quarterly Results Of The Group ...162 Five-Year Financial Summary Of The Group ...163 Ten-Year Statistical Record ...165 Ten-Year Charts ...166 The Group Fleet Profile ...167 Group Corporate Structure ...168 Information On Shareholdings ...170 Share Price And Turnover ...172 Notice Of Annual...

  • Page 55
    ...) •฀ Equity฀attributable฀to฀equity฀holders฀of฀the฀Company฀$15,125฀million฀(+0.2฀per฀cent) •฀ Net฀asset฀value฀$12.77฀per฀share฀(+5.5฀per฀cent) •฀ Total฀debt฀equity฀ratio฀0.11฀times฀(-0.01฀times) Singapore Airlines Annual Report 2007...

  • Page 56
    ...expenditure฀was฀due฀mainly฀to฀higher฀fuel฀cost฀from฀increase฀in฀jet฀fuel฀price฀and฀depreciation฀from฀ delivery฀of฀new฀aircraft. Group฀profit฀attributable฀to฀equity฀holders฀of฀the฀Company฀for฀the฀financial฀year฀was฀$2,049฀million...

  • Page 57
    ...฀liquidity฀position฀(+$117฀million)฀was฀a฀result฀of฀stronger฀cash฀generated฀from฀operations.฀Total฀debt฀to฀equity฀ratio฀ improved฀marginally฀by฀0.01฀times฀to฀0.11฀times. Group Equity Holders' Funds, Total Assets and Net Asset Value (NAV) Per Share...

  • Page 58
    FINANCIAL REVIEW Performance of the Group (continued) Financial Position of the Group (continued) For฀the฀financial฀year฀ended฀31฀March฀2008,฀the฀Board฀recommends฀a฀total฀distribution฀of฀100฀cents฀per฀share,฀comprising฀ 20฀cents฀interim฀dividend฀paid...

  • Page 59
    FINANCIAL REVIEW Performance of the Group (continued) Statements of Value Added and its Distribution ($ million) 2007-08 2006-07 2005-06 2004-05 2003-04 Total฀revenue฀ Less:฀Purchase฀of฀goods฀and฀services Add:฀Interest฀income฀ ฀ Surplus฀on฀disposal฀of฀aircraft,฀...

  • Page 60
    ... tax rate. Group Valued Added Distribution 2007-08 5.8% 19.4% 33.8% 41.0% Employees Retained฀in฀the฀Business Suppliers฀of฀Capital Government Total฀value฀added Amount Distribution $฀million฀ % 2,903.4 41.0 2,396.3 33.8 1,372.1 19.4 410.3 5.8 Singapore Airlines Annual Report...

  • Page 61
    FINANCIAL REVIEW Performance of the Group (continued) Group Average Staff Strength and Productivity The฀Group's฀average฀staff฀strength฀increased฀by฀963฀to฀30,088฀employees.฀A฀breakdown฀is฀as฀follows: 2007-08 2006-07 % Change Singapore฀Airlines฀ SATS฀Group฀ ...

  • Page 62
    ... REVIEW Performance of the Company Operating Performance 2007-08 2006-07 % Change Passengers฀carried฀(thousand)฀ Available฀seat-km฀(million)฀ Revenue฀passenger-km฀(million)฀ Passenger฀load฀factor฀(%)฀ Passenger฀yield฀(¢/pkm)฀ Passenger฀unit฀cost฀(¢/ask...

  • Page 63
    ...Change % Revenue฀ Expenditure฀ Operating฀profit฀ Finance฀charges฀ Interest฀income฀ Surplus฀on฀disposal฀of฀aircraft,฀spares฀and฀spare฀engines฀ Dividends฀from฀subsidiary฀companies,฀gross฀ Dividends฀from฀long-term....5 Singapore Airlines Annual Report 2007...

  • Page 64
    FINANCIAL REVIEW Performance of the Company (continued) Revenue The฀Company's฀revenue฀increased฀12.5฀per฀cent฀to฀$12,760฀million฀as฀follows: 2007-08 $ million 2006-07 $ million Change % Passenger฀revenue฀ Excess฀baggage฀revenue฀ Non-scheduled฀services฀ Bellyhold...

  • Page 65
    ... costs, foreign exchange hedging and revaluation loss, comprehensive aviation insurance costs, airport lounge expenses, non-information technology contract and professional fees, expenses incurred to mount nonscheduled services, aircraft licence fees and recoveries. Singapore Airlines Annual Report...

  • Page 66
    ...฀the฀year฀before,฀mainly฀driven฀by฀increase฀in฀sales฀bookings฀and฀higher฀credit฀card฀ commissions฀from฀increase฀in฀internet฀sales. Aircraft฀maintenance฀and฀overhaul฀costs฀rose฀$105฀million,฀with฀more฀component฀maintenance฀work฀carried...

  • Page 67
    ...of฀prior฀years'฀ deferred฀tax฀liabilities฀which฀arose฀from฀the฀2฀percentage฀points฀reduction฀in฀statutory฀tax฀rate. As฀at฀31฀March฀2008,฀the฀Company's฀deferred฀taxation฀account฀stood฀at฀$2,102฀million. Singapore Airlines Annual Report 2007...

  • Page 68
    FINANCIAL REVIEW Performance of the Company (continued) Average Staff Strength and Productivity The฀Company's฀average฀staff฀strength฀was฀14,071,฀an฀increase฀of฀224฀over฀the฀previous฀year.฀The฀distribution฀of฀employee฀ strength฀by฀category฀and฀location฀...

  • Page 69
    ... Company Limited ("SIAEC"), Singapore Airlines Cargo Pte Ltd ("SIA Cargo") and SilkAir (Singapore) Private Limited ("SilkAir"). The following performance review includes intra-group transactions. Singapore Airport Terminal Services Group 2007-08 $ million 2006-07 $ million Change % Total revenue...

  • Page 70
    ...'฀funds฀at฀23.9฀per฀cent,฀was฀0.1฀percentage฀point฀higher฀than฀the฀last฀financial฀year.฀Basic฀earnings฀ per฀share฀rose฀3.2฀per฀cent฀to฀23.7฀cents. Singapore Airlines Cargo 2007-08 $ million 2006-07 $ million Change % Total฀revenue฀ Total...

  • Page 71
    ...฀(Taiwan)฀in฀May฀2007,฀as฀well฀as฀Coimbatore฀(India)฀and฀Kathmandu฀(Nepal),฀both฀in฀฀ October฀2007. As฀at฀31฀March฀2008,฀equity฀holders'฀funds฀of฀SilkAir฀was฀$443฀million฀(+11.7฀per฀cent). Singapore Airlines Annual Report 2007-08 69

  • Page 72
    ...3 Name of Director 31.3.2008 31.3.2008 Interest in Singapore Airlines Limited Ordinary shares Stephen Lee Ching Yen Chew Choon Seng Euleen Goh Yiu Kiang James Koh Cher Siang Lucien Wong Yuen Kuai Options to subscribe for ordinary shares Chew Choon Seng Conditional award of restricted shares Chew...

  • Page 73
    .../ date of appointment Name of Director 31.3.2008 31.3.2008 Interest in Singapore Telecommunications Limited Ordinary shares Stephen Lee Ching Yen Chew Choon Seng Euleen Goh Yiu Kiang James Koh Cher Siang Lucien Wong Yuen Kuai Interest in SMRT Corporation Limited Ordinary shares Chew Choon Seng...

  • Page 74
    ... closing prices of the Company's ordinary shares on the Singapore Exchange Securities Trading Limited ("SGX-ST") for the five market days immediately preceding the date of grant. Under the Employee Share Option Scheme, options will vest two years after the date of grant. Under the Senior Executive...

  • Page 75
    ... outstanding at end of financial year under review Chew Choon Seng - - 1,194,000 - - 1,194,000 The particulars of options on shares in subsidiary companies are as follows: (a) Singapore Airport Terminal Services Limited ("SATS") The Singapore Airport Terminal Services Limited Employee Share...

  • Page 76
    ... THE BOARD OF DIRECTORS 5 Options on Shares in the Company (continued) (i) Employee Share Option Plan (continued) (a) Singapore Airport Terminal Services Limited ("SATS") (continued) At the end of the financial year, options to take up 55,873,275 unissued shares in SATS were outstanding: Number of...

  • Page 77
    REPORT BY THE BOARD OF DIRECTORS 5 Options on Shares in the Company (continued) (i) Employee Share Option Plan (continued) (b) SIA Engineering Company Limited ("SIAEC") At the end of the financial year, options to take up 52,004,788 unissued shares in SIAEC were outstanding: Number of options to ...

  • Page 78
    ... year under review Aggregate awards not released at end of financial year under review Name of participant Conditional awards granted during financial year under review RSP Chew Choon Seng PSP Chew Choon Seng 47,025 77,025 77,025 50,025 77,025 77,025 Singapore Airlines Annual Report...

  • Page 79
    REPORT BY THE BOARD OF DIRECTORS 5 Options on Shares in the Company (continued) (ii) Restricted Share Plan ("RSP") and Performance Share Plan ("PSP") (continued) The particulars of RSP and PSP in subsidiary companies are as follows: (a) Singapore Airport Terminal Services Limited ("SATS") The SATS ...

  • Page 80
    ...Governance. Auditors The auditors, Ernst & Young, Certified Public Accountants, have expressed their willingness to accept re-appointment. 7 On behalf of the Board, STEPHEN LEE CHING YEN Chairman CHEW CHOON SENG Chief Executive Officer Dated this 13th day of May 2008 Singapore Airlines Annual...

  • Page 81
    ... this statement there are reasonable grounds to believe that the Company will be able to pay its debts as and when they fall due. On behalf of the Board, STEPHEN LEE CHING YEN Chairman CHEW CHOON SENG Chief Executive Officer Dated this 13th day of May 2008 Singapore Airlines Annual Report 2007...

  • Page 82
    ... 2008, the statements of changes in equity of the Group and the Company, the profit and loss account and cash ï¬,ow statement of the Group for the year then ended, and a summary of significant accounting policies and other explanatory notes. Management's Responsibility for the Financial Statements...

  • Page 83
    ... For the financial year ended 31 March 2008 (in $ million) The Group Notes 2007-08 2006-07 REVENUE EXPENDITURE Staff costs Fuel costs Depreciation Impairment of property, plant and equipment Amortisation of intangible assets Aircraft maintenance and overhaul costs Commission and incentives Landing...

  • Page 84
    ... Company 2008 2007 EQUITY ATTRIBUTABLE TO EQUITY HOLDERS OF THE COMPANY Share capital Treasury shares Capital reserve Foreign currency translation reserve Share-based compensation reserve Fair value reserve General reserve MINORITY INTERESTS TOTAL EQUITY DEFERRED ACCOUNT DEFERRED TAXATION LONG-TERM...

  • Page 85
    STATEMENTS OF CHANGES IN EQUITY For the financial year ended 31 March 2008 (in $ million) The Group Attributable to Equity Holders of the Company Foreign currency Share-based translation compensation reserve reserve Notes Share capital Treasury shares Capital reserve Fair value reserve ...

  • Page 86
    STATEMENTS OF CHANGES IN EQUITY For the financial year ended 31 March 2008 (in $ million) The Group Attributable to Equity Holders of the Company Foreign currency translation reserve Share-based compensation reserve Notes Share capital Capital reserve Fair value reserve General reserve Total...

  • Page 87
    STATEMENTS OF CHANGES IN EQUITY For the financial year ended 31 March 2008 (in $ million) The Company Share capital Treasury shares Share-based compensation reserve Fair value reserve General reserve Notes Total Balance at 1 April 2007 Net fair value changes on available-for-sale assets Net fair...

  • Page 88
    ...ts of associated companies Surplus on sale of SIA Building Surplus on sale of investment in Singapore Aircraft Leasing Enterprise Pte Ltd Operating profit before working capital changes Increase in trade and other creditors Decrease/(Increase) in short-term investments Increase in sales in advance...

  • Page 89
    ... STATEMENT For the financial year ended 31 March 2008 (in $ million) The Group Notes 2007-08 2006-07 CASH FLOW FROM FINANCING ACTIVITIES Dividends paid Dividends paid by subsidiary companies to minority interests Interest paid Proceeds from borrowings Repayment of borrowings Repayment of long-term...

  • Page 90
    ...Temasek Holdings (Private) Limited, incorporated in the Republic of Singapore. The registered office of the Company is at Airline House, 25 Airline Road, Singapore 819829. The principal activities of the Group consist of passenger and cargo air transportation, airport terminal services, engineering...

  • Page 91
    ... goods or services upon the redemption of the award credits. The adoption of this interpretation should not result in a change in accounting policy of the Company as the current accounting treatment of the Company's award credits granted under the frequent ï¬,yer programme ("KrisFlyer") is closely...

  • Page 92
    ..., the share of results is arrived at from the last audited financial statements available and unaudited management financial statements to the end of the accounting period. Where necessary, adjustments are made to bring the accounting policies in line with those of the Group. (e) Intangible assets...

  • Page 93
    ...line basis over its estimated useful life of 2 years. (f) Foreign currencies The management has determined the currency of the primary economic environment in which the Company operates i.e., functional currency, to be SGD. Sales prices and major costs of providing goods and services including major...

  • Page 94
    ... the asset to working condition for its intended use. The cost of all aircraft is stated net of manufacturers' credit. Aircraft and related equipment acquired on an exchange basis are stated at amounts paid plus the fair value of the fixed asset traded-in. Expenditure for heavy maintenance visits...

  • Page 95
    ... value is the estimated selling price in the ordinary course of business less estimated costs necessary to make the sale. Work-in-progress is stated at cost plus estimated attributable profit. (k) Financial assets Financial assets are recognised on the balance sheet when, and only when, the Group...

  • Page 96
    ... investments Long-term investments held by the Group are classified as available-for-sale. As there is no active market for the trading of these investments and fair value cannot be reliably measured, these investments are stated at cost. The accounting policy for this category of financial assets...

  • Page 97
    ... cash ï¬,ows discounted at the current market rate of return for a similar financial asset. Such impairment losses are not reversed in subsequent periods. (iii) Available-for-sale financial assets Significant or prolonged decline in fair value below cost, significant financial difficulties...

  • Page 98
    ...aircraft maintenance and overhaul expenses to meet contractual return conditions for sale and leaseback aircraft are accrued equally over the lease terms. (u) Share capital and share issue expenses Proceeds from issuance of ordinary shares are recognised as share capital in equity. Incremental costs...

  • Page 99
    ... Services Limited Employee Share Option Plan and the SIA Engineering Company Limited Employee Share Option Plan for granting of share options to senior executives and all other employees. The exercise price approximates the market value of the shares at the date of grant. Singapore Airlines Annual...

  • Page 100
    ... FINANCIAL STATEMENTS 31 March 2008 2 Accounting Policies (continued) (aa) Employee benefits (continued) (i) Equity compensation plans (continued) The Group has also implemented the Singapore Airlines Limited Restricted Share Plan and Performance Share Plan, the Singapore Airport Terminal Services...

  • Page 101
    ... would be recognised in the carrying value of the aircraft. At the inception of a hedge relationship, the Group formally designates and documents the hedge relationship to which the Group wishes to apply hedge accounting and the risk management objective and strategy for undertaking the hedge. The...

  • Page 102
    ... of airport terminal services and engineering services, is derived in Singapore and therefore, is not shown. Assets, which consist principally of ï¬,ight and ground equipment, support the entire worldwide transportation system, are mainly located in Singapore. An analysis of assets and capital...

  • Page 103
    ... residual values are reviewed on an annual basis. The carrying amount of the Group's and the Company's aircraft ï¬,eet at 31 March 2008 was $12,545.9 million (2007: $12,381.7 million) and $10,193.7 million (2007: $9,735.9 million) respectively. (iii) Passenger revenue recognition Passenger sales are...

  • Page 104
    ... segments for the financial years ended 31 March 2008 and 2007 and certain assets and liabilities information of the business segments as at those dates. Airline operations 2007-08 2006-07 Airport terminal services 2007-08 2006-07 TOTAL REVENUE External revenue Inter-segment revenue 15,263.9 50...

  • Page 105
    NOTES TO THE FINANCIAL STATEMENTS 31 March 2008 Engineering services 2007-08 2006-07 Others 2007-08 2006-07 Total of segments 2007-08 2006-07 Elimination* 2007-08 2006-07 ....1) 181.8 237.9 38.8 77.9 57.9 79.0 421.0 (82.2) 2,202.4 2,128.8 73.6 2,202.4 Singapore Airlines Annual Report 2007-08 103

  • Page 106
    ... TO THE FINANCIAL STATEMENTS 31 March 2008 4 Segment Information (in $ million) (continued) Business segments (continued) Airline operations 2008 2007 Airport terminal services 2008 2007 OTHER INFORMATION AT 31 MARCH Segment assets Investments in and loans to joint venture and associated companies...

  • Page 107
    NOTES TO THE FINANCIAL STATEMENTS 31 March 2008 Engineering services 2008 2007 Others 2008 2007 Total of segments 2008 2007 Elimination* 2008 2007 Consolidated 2008 2007 960.9 438.0 14.6 ... 15.8 2,728.8 10,448.7 3,026.7 32.5 1,319.4 0.6 54.0 (77.2) Singapore Airlines Annual Report 2007-08 105

  • Page 108
    NOTES TO THE FINANCIAL STATEMENTS 31 March 2008 4 Segment Information (in $ million) (continued) Geographical segments The following table presents revenue information on airline operations by geographical areas for the financial years ended 31 March 2008 and 2007. By area of original sale 2007-08 ...

  • Page 109
    ... 55.2 40.2 1.4 96.8 1.2 32.4 43.1 1.4 (0.2) 77.9 10 Exceptional Items (in $ million) The Group 2007-08 2006-07 Surplus on sale of SIA Building Surplus on sale of investment in Singapore Aircraft Leasing Enterprise Pte Ltd - 223.3 197.7 421.0 Singapore Airlines Annual Report 2007-08 107

  • Page 110
    ... Overprovision in respect of prior years, net Effect of change in statutory tax rate Income under an incentive scheme Others Taxation 2,547.2 458.5 2,284.6 411.2 (61.5) 45.0 10.6 (43.7) 1.4 410.3 (114.7) 57.4 15.4 (19.3) (246.7) (1.9) (19.2) 82.2 Singapore Airlines Annual Report 2007-08 108

  • Page 111
    ... tax exempt [one-tier] dividend of 35.0 cents per share and a special tax exempt [one-tier] dividend of 50.0 cents per share) amounting to $947.2 million (2006-07: $443.0 million and $633.0 million respectively) be paid for the financial year ended 31 March 2008. Singapore Airlines Annual Report...

  • Page 112
    ... TO THE FINANCIAL STATEMENTS 31 March 2008 14 Share Capital (in $ million) The Group and the Company Number of shares Amount 2008 2007 2008 2007 Issued and fully paid share capital Ordinary shares Balance at 1 April Share options exercised during the year Shares cancelled during the year pursuant...

  • Page 113
    ... FINANCIAL STATEMENTS 31 March 2008 14 Share Capital (in $ million) (continued) Share option plans The Singapore Airlines Limited Employee Share Option Plan ("SIA ESOP"), the Singapore Airport Terminal Services Limited Employee Share Option Plan ("SATS ESOP") and the SIA Engineering Company Limited...

  • Page 114
    ... TO THE FINANCIAL STATEMENTS 31 March 2008 14 Share Capital (in $ million) (continued) Share option plans (continued) SATS ESOP 2007-08 Number of options Weighted average exercise price 2006-07 Number of options Weighted average exercise price Balance at 1 April Granted Cancelled Exercised Balance...

  • Page 115
    ...options (years) Exercise price ($) Share price at date of grant ($) SIAEC ESOP Expected dividend yield (%) Expected volatility (%) Risk-free interest rate (%) Expected life of options (years) Exercise price ($) Share price at date of grant ($) * Management's forecast in line with dividend policy 23...

  • Page 116
    NOTES TO THE FINANCIAL STATEMENTS 31 March 2008 14 Share Capital (in $ million) (continued) Share option plans (continued) Terms of share options outstanding as at 31 March 2008: SIA ESOP Exercisable period Exercise price Number outstanding Number exercisable 28.3.2001 - 27.3.2010 28.3.2002 - 27.3....

  • Page 117
    NOTES TO THE FINANCIAL STATEMENTS 31 March 2008 14 Share Capital (in $ million) (continued) Share option plans (continued) Terms of share options outstanding as at 31 March 2008: SATS ESOP Exercisable period Exercise price Number outstanding Number exercisable 28.3.2001 - 27.3.2010 28.3.2002 - 27...

  • Page 118
    ... writing by the Compensation and Human Resource Committee. The said options are exercisable up to the expiration of the applicable exercise period or the period of five years from the date of retirement or cessation of employment, whichever is earlier. Singapore Airlines Annual Report 2007-08 116

  • Page 119
    ... targets set at the start of a three-year overlapping performance period based on stretched long-term corporate objectives. Performance Conditions SIA ฀ At both Company and Group level •฀ EBITDAR#฀Margin฀ •฀ Absolute฀Total฀Shareholder฀Return฀(TSR) outperform Cost of Equity...

  • Page 120
    ... RSP PSP July 2006 Award RSP PSP SIA Expected dividend yield (%) Expected volatility (%) Risk-free interest rate (%) Expected term (years) Cost of equity (%) Share price at date of grant ($) 18.30 - 19.46 2.41 - 2.61 1.9 - 3.9 N.A. 18.90 Management's forecast in line with dividend policy 18.30 18...

  • Page 121
    ... PSP October 2006 Award RSP PSP SATS Expected dividend yield (%) Expected volatility (%) Risk-free interest rate (%) Expected term (years) Cost of equity (%) Share price at date of grant ($) 21.70 - 25.60 2.45 - 2.59 1.9 - 3.9 N.A. 3.04 Management's forecast in line with dividend policy 21.70 19...

  • Page 122
    ... PSP RSP July 2006 Award PSP SIAEC Expected dividend yield (%) Expected volatility (%) Risk-free interest rate (%) Expected term (years) Cost of equity (%) Share price at date of grant ($) 19.05 - 20.43 2.39 - 2.54 2.00 - 4.00 N.A. 4.64 Management's forecast in line with dividend policy 19.16 16...

  • Page 123
    ... its ordinary shares by way of on-market purchases at share prices ranging from $13.92 to $15.24. The total amount paid to purchase the shares was $33.2 million and this is presented as a component within equity attributable to equity holders of the Company. Singapore Airlines Annual Report 2007-08...

  • Page 124
    NOTES TO THE FINANCIAL STATEMENTS 31 March 2008 16 Other Reserves (in $ million) (a) Capital reserve Capital reserve mainly arises from the revaluation of land and buildings owned by RCMS Properties Private Limited, an associated company. (b) Foreign currency translation reserve The foreign currency...

  • Page 125
    ... March 2008 2007 2008 The Company 31 March 2007 Deferred gain on sale and leaseback transactions - operating leases - finance leases Deferred credit 272.2 45.1 317.3 470.0 787.3 374.8 49.3 424.1 549.5 973.6 190.0 190.0 470.0 660.0 261.3 261.3 549.5 810.8 Singapore Airlines Annual Report 2007...

  • Page 126
    ...-08 2006-07 The Company Balance sheet 31 March 2008 2007 The deferred taxation arises as a result of: Deferred tax liabilities Differences in depreciation Revaluation of jet fuel swap/ option contracts to fair value Revaluation of available-for-sale financial assets to fair value Other temporary...

  • Page 127
    ...TO THE FINANCIAL STATEMENTS 31 March 2008 19 Long-Term Liabilities (in $ million) The Group 31 March 2008 2007 2008 The Company 31 March 2007 Notes payable repayable after one year Loans Repayable within one year Repayable after one year Finance lease commitments Repayable within one year Repayable...

  • Page 128
    ... the previous financial year, the Company fully repaid all finance lease commitments. Interest rates on the finance lease commitments were charged at a margin above the LIBOR. These ranged from 4.80% to 6.11% per annum in 2006-07. Singapore Airlines Cargo Pte Ltd ("SIA Cargo") holds four B747-400...

  • Page 129
    ... depreciation and impairment Aircraft Aircraft spares Aircraft spare engines Freehold buildings Leasehold land and buildings Plant and equipment Office and computer equipment 5,033.2 525.8 162.7 99.8 644.8 908.6 330.9 7,705.8 Net book value 16,311.7 Singapore Airlines Annual Report 2007-08 127

  • Page 130
    NOTES TO THE FINANCIAL STATEMENTS 31 March 2008 20 Property, Plant and Equipment (in $ million) (continued) The Group (continued) 1 April 06 Additions Disposals/ Transfers Impairment 31 March 07 Cost Aircraft Aircraft spares Aircraft spare engines Freehold land Freehold buildings Leasehold land and...

  • Page 131
    ... TO THE FINANCIAL STATEMENTS 31 March 2008 20 Property, Plant and Equipment (in $ million) (continued) The Company Disposals/ Transfers 1 April 07 Additions 31 March 08 Cost Aircraft Aircraft spares Aircraft spare engines Freehold land Freehold buildings Leasehold land and buildings Plant and...

  • Page 132
    ... book value of fixed assets acquired under finance leases: - aircraft - plant and equipment - factory building 858.1 0.2 67.1 925.4 925.4 76.2 1,001.6 Advance and progress payments comprise mainly purchases of aircraft, related equipment and building projects. Singapore Airlines Annual Report...

  • Page 133
    ... Maintenance Service Australia Pty Ltd. Upon acquisition, licenses to operate in Australia are capitalised. Computer software The Group 31 March 2008 2007 2008 The Company 31 March 2007 Balance at 1 April Additions Amortisation Balance at 31 March Cost Accumulated amortisation Net book value...

  • Page 134
    ... owing by subsidiary companies Market value of quoted equity investments ## 227.4 5,437.5 The value is $2. The loan to subsidiary company is unsecured and has repayment terms of remaining 3.5 years. Interest on loan to subsidiary companies is computed using SGD Swap-Offer Rates, and applying...

  • Page 135
    ... Engineering Company Limited SIAEC Global Pte Ltd Aircraft Maintenance Services Australia Pty Ltd** Investment holding Inï¬,ight catering services Airport ground handling services Aviation security services Providing and selling laundry and linen services Dormant Airport cargo delivery management...

  • Page 136
    ... FINANCIAL STATEMENTS 31 March 2008 22 Subsidiary Companies (in $ million) (continued) Country of incorporation and place of business Percentage of equity held by the Group 2008 2007 Principal activities Cost (in $ million) 2008 2007 Singapore Flying College Pte Ltd Sing-Bi Funds Private Limited...

  • Page 137
    ... of equity held by the Group 2008 2007 Principal activities Cost (in $ million) 2008 2007 # # Service Quality (SQ) Centre Pte Ltd@ Virgin฀Atlantic฀Limited*++ Tiger Aviation Pte Ltd@ RCMS Properties Private Limited^^+ Aviserv Ltd Taj SATS Air Catering Limited** Servair-SATS Holding Company Pte...

  • Page 138
    ... Private Limited Taj Madras Flight Kitchen Pvt Limited Tan Son Nhat Cargo Services Ltd Asia Airfreight Terminal Co Ltd^ Evergreen Air Cargo Services Corporation+ Evergreen Airline Services Corporation+ MacroAsia Catering Services, Inc.+ Combustor Airmotive Services Pte Ltd+ @@+ Airport ground...

  • Page 139
    ...) 2008 2007 PT JAS Aero-Engineering Services+ Provide aircraft maintenance services, including technical and non-technical handling at the airport Hotel ownership and management Air cargo transportation Indonesia 3.67 3.67 39.7 40.1 PT Purosani Sri Persada Great Wall Airlines Company Limited...

  • Page 140
    ... Pte Ltd* Singapore Aero Engine Services Private Limited* Repair and overhaul of aero engine components and parts Repair and overhaul of aircraft engines Singapore 10.07 10.07 40.4 41.0 - do - 46.53 46.53 40.4 41.0 * Audited by Ernst & Young, Singapore. Singapore Airlines Annual Report...

  • Page 141
    ... receivables are stated at amortised cost and are expected to be received over the next 2 years. The remaining non-current assets relate to capital expenditure incurred for the setting up of associated companies which are not legally incorporated as at year-end. As at 31 March 2008 and 31 March 2007...

  • Page 142
    ... the Group is as follows: USD - 45.1% (2007: 19.8%), AUD - 5.7% (2007: 5.8%), EUR - 6.2% (2007: 5.2%) and JPY - 3.4% (2007: 4.9%). There was no loan to directors of the Company and its subsidiary companies in accordance with schemes approved by shareholders of the Company. Singapore Airlines Annual...

  • Page 143
    ... one day and one year depending on the immediate cash requirements of the Group, and earn interest at the respective short-term deposit rates. The weighted average effective interest rate for short-term deposits is 2.95% (2006-07: 4.30%) per annum. Singapore Airlines Annual Report 2007-08 141

  • Page 144
    ...finance lease Less: Assets acquired under credit terms at 31 March Less: Assets of subsidiary company acquired Cash invested in capital expenditure 15.3 3,951.3 (1,849.9) 2,101.4 (5.5) (22.2) (0.4) 2,088.6 2.7 5,114.7 (2,075.4) 3,039.3 (15.3) 3,026.7 Singapore Airlines Annual Report 2007-08 142

  • Page 145
    ... allowed under all the lease arrangements. SilkAir (Singapore) Private Limited ("SilkAir") has four A320-232 and two A319-132 aircraft under operating leases with fixed rental rates. The lease terms for the two A319-132 aircraft are 5.5 years, which SilkAir holds an option to extend the leases for...

  • Page 146
    .... The Group and the Company have outstanding commitments to subscribe for shares in associated and joint venture companies. Such commitments aggregated $67.4 million (2007: $34.6 million) for the Group and $27.3 million (2007: $27.3 million) for the Company. Singapore Airlines Annual Report 2007-08...

  • Page 147
    ... TO THE FINANCIAL STATEMENTS 31 March 2008 36 Contingent Liabilities (in $ million) (a) Flight SQ006 There were 83 fatalities among 179 passengers and crew members aboard the Boeing 747 aircraft, Flight SQ006 that crashed on the runway at the Chiang Kai Shek International Airport, Taipei en route to...

  • Page 148
    ... the effects of changes in jet fuel prices, foreign currency exchange rates, interest rates and the market value of its investments. The Group's overall risk management approach is to moderate the effects of such volatility on its financial performance. The Group's policy is to use derivatives...

  • Page 149
    ... TO THE FINANCIAL STATEMENTS 31 March 2008 37 Financial Risk Management Objectives and Policies (continued) (e) Counterparty risk Surplus funds are invested in interest-bearing bank deposits and other high quality short-term liquid investments. Counterparty risks are managed by limiting aggregated...

  • Page 150
    NOTES TO THE FINANCIAL STATEMENTS 31 March 2008 37 Financial Risk Management Objectives and Policies (continued) (f) Liquidity risk (continued) The maturity profile of the financial liabilities of the Group and the Company is as follows. The amounts disclosed in the table are the contractual ...

  • Page 151
    ...TO THE FINANCIAL STATEMENTS 31 March 2008 37 Financial Risk Management Objectives and Policies (continued) (f) Liquidity risk (continued) Within 1 year 1-2 years 2-3 years 3-4 years 4-5 years More than 5 years Total 2007 The Group Deferred credit Notes payable Obligations under finance leases Bank...

  • Page 152
    ... Financial liabilities at amortised cost Total 2008 The Group Assets Long-term investments Other non-current assets Trade debtors Deposits and other debtors Amounts owing by associated companies Investments Cash and bank balances Total financial assets Total non-financial assets Total assets...

  • Page 153
    ... Financial liabilities at amortised cost Total 2008 The Company Assets Long-term investments Other non-current assets Trade debtors Deposits and other debtors Amounts owing by subsidiary companies Investments Cash and bank balances Total financial assets Total non-financial assets Total assets...

  • Page 154
    ... Financial liabilities at amortised cost Total 2007 The Group Assets Long-term investments Other non-current assets Trade debtors Deposits and other debtors Amounts owing by associated companies Investments Cash and bank balances Total financial assets Total non-financial assets Total assets...

  • Page 155
    ... risk-free rate estimated as average of the past 12 months Singapore Government Securities benchmark issues' one-year yield (2007-08: 1.97%, 2006-07: 2.97%) was also applied to each individual jet fuel option contracts to derive their estimated fair values at balance sheet date. The fair values...

  • Page 156
    .... Financial instruments carried at other than fair value Long-term investments amounting to $43.3 million (2007: $43.3 million) for the Group and $18.9 million (2007: $18.9 million) for the Company are stated at cost because the fair values cannot be obtained directly from quoted market price or...

  • Page 157
    ... rate swaps are assessed to be highly effective and at 31 March 2008, a net fair value loss of $12.1 million (2007: $3.8 million), with a related deferred tax credit of $2.7 million (2007: $0.8 million), is included in the fair value reserve in respect of these contracts. Singapore Airlines Annual...

  • Page 158
    ..., an increase in price of one US cent per American gallon of jet fuel affects the Group's and Company's annual fuel costs by $20.8 million and $17.0 million (2006-07: $23.1 million and $18.3 million) respectively. The fuel hedging sensitivity analysis is based on contracts that are still open as at...

  • Page 159
    ... 1% of quoted prices Decrease in equity 4.6 6.0 3.6 4.7 (4.6) (6.0) (3.6) (4.7) Other price risks As at 31 March 2008, hypothetical changes in other risk variables will not significantly affect the price of financial instruments at that date. Singapore Airlines Annual Report 2007-08 157

  • Page 160
    ... in the objectives, policies or processes relating to the management of the Company's capital structure. During the financial year ended 31 March 2008, the Company made a cash distribution to shareholders totalling approximately $2.2 billion by way of a special dividend and the cancellation of one...

  • Page 161
    ... Chew Choon Seng Bey Soo Khiang Huang Cheng Eng Mak Swee Wah Ng Chin Hwee - - 1,194,000 762,000 747,000 362,750 214,025 342,000 414,750 156,650 67,000 1,194,000 420,000 332,250 206,100 147,025 Conditional awards granted to directors and key executives of the Company pursuant to the Restricted...

  • Page 162
    ... operating costs arising from recent increases in the price of jet fuel. On 4 April 2008, SIA Engineering Company signed a joint venture agreement with Cebu Pacific Air to set up an aircraft heavy maintenance facility at Clark International Airport in the Philippines. SIA Engineering Company will...

  • Page 163
    ... Hub Ltd Starhub Ltd SNP Corporation Ltd Group SNP Security Printing Pte Ltd Temasek Holdings (Private) Limited Group ASPrecise Pte Ltd Great Wall Airlines Company Ltd PT Bank Danamon Indonesia PT Bank Internasional Indonesia Tiger Airways Pte Ltd Total interested persons transactions Note: All the...

  • Page 164
    QUARTERLY RESULTS OF THE GROUP 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Total TOTAL REVENUE 2007-08 ($ million) 2006-07 ($ million) TOTAL...EQUITY HOLDERS OF THE COMPANY 2007-08 ($ million) 2006-07 ($ million) EARNINGS (AFTER TAXATION) PER SHARE....8 Singapore Airlines Annual Report 2007-08 162

  • Page 165
    ... Pte Ltd Surplus on disposal of Aviation Software Development Consultancy India Limited Staff compensation and restructuring of operations Profit before taxation Profit attributable to equity holders of the Company BALANCE SHEET ($ million) Share capital Treasury shares Capital reserve Foreign...

  • Page 166
    ... (times) PROFITABILITY RATIOS (%) Return on equity holders' funds R4 Return on total assets R5 Return on turnover R6 PRODUCTIVITY AND EMPLOYEE DATA Value฀added฀($฀million)฀ Value฀added฀per฀employee฀($) R7 Revenue per employee ($) R7 Average employee strength S$ per US$ exchange rate...

  • Page 167
    ... companies, and additional long-term investments. Seat capacity per employee is available seat capacity divided by Singapore Airlines average staff strength. Passenger load carried per employee is defined as passenger load and excess baggage carried divided by Singapore Airlines average staff...

  • Page 168
    ...Singapore Airlines Industrial Wide R2 Average age of SIA passenger ï¬,eet: 6 years and 5 months (as at 31 March 2008). R1 SIA Cargo was corporatised on 1 July 2001. Company revenue, expenditure, profit before and after taxation in these charts for 2000-01 and prior years show the combined results...

  • Page 169
    ... and SilkAir respectively. Seats in standard configuration Average age in years (y) and months (m) Expiry of operating lease 2008-09 2009-10 Aircraft type Owned Finance Lease Operating Lease Total On firm order On option Singapore Airlines: B747-400 B777-200 B777-200A B777-200ER B777-300...

  • Page 170
    ... Insurance Company (Pte) Limited SIA Properties (Pte) Ltd Singapore Flying College Pte Ltd Sing-Bi Funds Private Limited Singapore Airlines Cargo Private Limited SIA (Mauritius) Ltd Singapore Airport Duty-Free Emporium (Private) Limited Service Quality (SQ) Centre Pte Ltd Virgin฀Atlantic฀Limited...

  • Page 171
    GROUP CORPORATE STRUCTURE At 31 March 2008 100% 100% 100% 100% 65% 51% 51% 50% 50% 49% 49% 49% 49% 49% 47.1% 45% 40% 40% Aircraft Maintenance Services Australia Pty Ltd SIAEC Global Pte Ltd Singapore Jamco Private Limited Aerospace Component Engineering Services Pte Ltd Aviation Partnership (...

  • Page 172
    ...1,658 25,668 92.00 0.85 0.69 6.46 100.00 Range of Shareholdings 7.30% 0.08% 18.34% Location of Accounts 13.15% 9.82% 74.28% 10.21% 66.82% 1 - 999 1,000 - 10,000 10,001 - 1,000,000 1,000,001 and above Singapore United States United Kingdom Others Singapore Airlines Annual Report 2007-08 170

  • Page 173
    ...at 27 May 2008 Major shareholders Number of shares %* 1 2 3 4 5 6 7 8 9 Temasek Holdings (Private) Limited DBS Nominees Pte Ltd Citibank Nominees Singapore Pte Ltd HSBC (Singapore) Nominees Pte Ltd DBSN Services Pte Ltd United Overseas Bank Nominees Pte Ltd Rafï¬,es Nominees Pte Ltd DB Nominees...

  • Page 174
    ... R2 R1 R2 20.20 14.12 15.60 18.00 12.00 16.60 9.26 1.22 5.31 9.62 1.37 5.85 Based on closing price on 31 March and Group numbers. Cash earnings is defined as profit attributable to equity holders of the Company plus depreciation and amortisation. Singapore Airlines Annual Report 2007-08 172

  • Page 175
    ... to transact the following business: Ordinary Business 1. To receive and adopt the Directors' Report and Audited Financial Statements for the year ended 31 March 2008 and the Auditors' Report thereon. To declare a final dividend of 80 cents per ordinary share for the year ended 31 March 2008. To re...

  • Page 176
    ... of the Company as at 5.00 p.m. on 4 August 2008 will be entitled to the final dividend. The final dividend, if so approved by shareholders, will be paid on 15 August 2008. By Order of the Board Ethel Tan (Mrs) Company Secretary 23 June 2008 Singapore Singapore Airlines Annual Report 2007-08...

  • Page 177
    ... proxy or proxies must be deposited at the office of the Company's Share Registrar, M & C Services Private Limited, 138 Robinson Road, #17-00 The Corporate Office, Singapore 068906 not less than 48 hours before the time fixed for holding the Meeting. Singapore Airlines Annual Report 2007-08 175

  • Page 178
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