Singapore Airlines 2008 Annual Report Download - page 36

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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,
combined with disciplined cost control.
It adopted a variable frequency approach to its freighter
network to better match capacity with cargo demand.
Scheduled services were reduced during lull periods and
additional services were mounted during peak periods.
While freighter services to New York, Dublin, Taipei and
Nagoya were suspended, new services to Hanoi and Leipzig,
were launched. Seventh freedom flights were introduced
with the launch of a thrice-weekly service between Brussels
and the USA.
SIA Cargo expanded its charter customer base. Existing
electronics and racehorse shippers continued to pledge their
support, and the company stepped up its involvement in
areas such as concerts and motor sports. 29 charters were
operated during the year in review.
SIA Cargo also entered a three-year partnership with Wildlife
Reserves Singapore to jointly promote wildlife conservation.
It continues to pioneer the use of electronic information
in place of paper documents with e-freight trials being
conducted in November 2007. Having demonstrated the
technical viability of e-freight, SIA Cargo is working with
IATA to further expand the initiative.
During the year in review, SIA Cargo was named Best Carrier
to the Far East and Best Carrier to Australasia by Air Cargo
News. It was also awarded the Award for Excellence in the
Air Carrier category for the fourth consecutive year.
SIA Cargo was awarded the Friend of Heritage award by
National Heritage Board in recognition of the carrier’s
support to the Singapore National Museum.
SIA Cargo has a fleet of 14 B747 freighters. The average
age of its freighter fleet as of 1 March 2008 is 7 years and
3 months.
The company will continue to be nimble and flexible in
order to control cost more effectively in this demanding
market situation.
Singapore Airlines Annual Report 2007-08
34
OPERATING REVIEW
Singapore Airlines
Cargo (SIA Cargo)
earned a profit
attributable to
equity holders of
$115.4 million.
SINGAPORE AIRLINES CARGO