Singapore Airlines 2011 Annual Report Download - page 28

Download and view the complete annual report

Please find page 28 of the 2011 Singapore Airlines annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 208

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152
  • 153
  • 154
  • 155
  • 156
  • 157
  • 158
  • 159
  • 160
  • 161
  • 162
  • 163
  • 164
  • 165
  • 166
  • 167
  • 168
  • 169
  • 170
  • 171
  • 172
  • 173
  • 174
  • 175
  • 176
  • 177
  • 178
  • 179
  • 180
  • 181
  • 182
  • 183
  • 184
  • 185
  • 186
  • 187
  • 188
  • 189
  • 190
  • 191
  • 192
  • 193
  • 194
  • 195
  • 196
  • 197
  • 198
  • 199
  • 200
  • 201
  • 202
  • 203
  • 204
  • 205
  • 206
  • 207
  • 208

OPERATING REVIEW
SINGAPORE AIRLINES
026
Subsidiaries
SIA Cargo
SIA Cargo reported an operating profit of $151 million in the year in review.
With global economic conditions slowly recovering from the downturn from two financial years ago, growth
patterns are showing trends of normalising to be in line with those seen in previous years.
During the financial year, SIA Cargo introduced more freighter flights in response to an increase in global
demand in the first half. Services that were reduced during lull periods in the previous year were reinstated.
The company also channeled resources to operate more short and medium haul services. New freighter points
such as Taipei, Bangkok and Kolkata were introduced.
During the year in review, SIA Cargo signed an agreement to acquire a 16% equity interest in China Cargo
Airlines. China Cargo Airlines will be re-organised into a limited liability Chinese-foreign equity joint venture
company. SIA Cargo’s investment in the re-organised company amounts to RMB328 million. China has always
been a priority for SIA Cargo. With the investment in China Cargo Airlines, SIA Cargo is better positioned to
grow with the Chinese market.
The company continues to focus on close cooperation with key customers moving forward. A total of nine
business partners renewed their participation in our Global Partnership Programme.
Higher volumes of e-freight were carried by SIA Cargo during the year in review. To spearhead the drive for
a paper-free environment, SIA Cargo is also intensifying efforts to launch the electronic airway bill (e-AWB) to
benefit its customers in Singapore by end-2011.
On the information technology front, SIA Cargo has successfully replaced its legacy reservations system with a
new user-friendly system called Reservations Express, or Rx for short. All modules of the system were cut over in
March 2011. The system will be responsive to customer requirements in this fast-changing and volatile market
environment. SIA Cargo will continue to upgrade its systems to meet the challenges of our competitive industry.
During the year in review, SIA Cargo received the “Award for Excellence (Air Carrier)” from Air Cargo World.
It was also named the “Best Air Cargo Carrier in Asia” and “Best Green Service Provider (Airline)” at the 2010
Asian Freight & Supply Chain Awards. In addition, SIA Cargo won the “Best Cargo Airline from Asia Pacific”
award conferred by Air Cargo News. Besides its high standards of customer service, Singapore Airlines Cargo
was also honoured for its contributions to the Arts and was awarded the “Friend of Heritage Award” by the
National Heritage Board of Singapore.
However, there remain concerns in the near future about escalating costs due to rising jet fuel prices and the
stability of the global economy’s recovery.
In view of the uncertain business environment, SIA Cargo will continue to be flexible in deploying its resources
and vigilant in maintaining cost discipline. The company will also continue to seek growth opportunities in
emerging markets and actively pursue more projects and charter opportunities.