Singapore Airlines 2008 Annual Report Download - page 11

rise and capacity is reduced. Shareholders can be assured
the Board and management will remain vigilant, and act to
ensure the effects of these external factors will be as limited
as possible. While these challenges face all airlines alike, it
reinforces the need for prudent cost management, a strong
balance sheet and a sharp focus on matching capacity with
demand.
The directors have reviewed the capital structure of the
Company. Taking into account the funding requirements
for capital expenditures, and the financial capacity of
the Company under a range of business projections, the
directors are recommending a final dividend for FY 2007-08
of 80 cents per share. Together with the interim dividend
of 20 cents per share paid on 30 November 2007, this will
bring the total dividend for the year to $1 per share. The
directors consider that this is sustainable and will improve
the efficiency of the capital structure.
In Closing
I would like, once again, to thank my fellow directors for
their ongoing support and commitment to the Company. We
extend our welcome to two new colleagues: Christina Ong
and Lucien Wong. Already, the Board is benefiting from their
diverse experience in business and the law.
I feel privileged to work with a team of Directors so
committed to the Company’s long-term best interests, and
shareholders can be confident that the Board’s commitment
to their interests is absolute.
As always, good results come only through the support and
patronage of our customers, the exceptional work of the
people in the Company, and the co-operation of our business
associates. To our customers, I thank each of you for your
ongoing support, and recommit all of us in the Company to
striving harder each year to make your experiences with us
as exceptional as you expect. To our people, the challenge
lies in that commitment, and I have every confidence that
you will rise to it with determination and enthusiasm.
Stephen Lee
Chairman
Complete with a new SilverKris Lounge and other customer
facilities, it gives us the space to grow into the future. Again,
painstaking preparation paid off, with the opening virtually
seamless for our customers.
Capacity constraints did mean that growth opportunities
were limited during the year in review. However, new
frequencies were added to respond to demand across the
network.
Singapore Airlines added one new city to the network
– Houston. Additional flights were added to Barcelona,
Milan, Moscow, Paris and Zurich, to bring the Airline’s
weekly schedule of flights to Europe to 93. Nearer to home,
frequencies to cities in Vietnam and India were added.
SilkAir began flying to Kaohsiung in Taiwan, Coimbatore in
India, and Kathmandu in Nepal.
I am very pleased that management, our staff and unions
across the Group are continuing their commitment to work
together on the long-term challenges facing us. As the
relationships deepen, the bond, which brings us all together,
strengthens; this can only be positive in motivating our
people to do their best for our customers.
The ongoing dialogue with staff and unions has surfaced
issues that require attention. For many of these issues,
solutions will not be easy, or quickly found, but the
commitment to work together is critical to addressing them.
For example, one issue under discussion is what could
be done to assist and prepare our flying crew for careers
after they retire from flying. Our cabin crew are one of our
strongest assets, and I see this challenge as particularly
important in encouraging them to stay longer, to benefit
from their collective experiences.
China Eastern Airlines
In September, Singapore Airlines and Temasek Holdings
joined China Eastern Air Holding Company in announcing a
proposal for a strategic investment in China Eastern Airlines.
In the event, the proposal was not supported by a
sufficient number of minority shareholders to pass. While
disappointed, we respect the decision of China Eastern
Airlines’ shareholders.
We will continue to explore opportunities to cooperate with
China Eastern Airlines and with China’s growing aviation
sector in general.
Outlook
Staggeringly high jet fuel prices and a weaker global
economy mean turbulence ahead. These factors have
already proven too much for some airlines, as bankruptcies
Singapore Airlines Annual Report 2007-08
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