Monday, February 18, 2013

SIA set to recover in 2013

The following is my opinion. It is based on my gut feeling as well as what I have read regarding aviation revenue in 2013.

Experts is talking about US airlines leading the race to airlines' profitability.
IATA has 240 member airlines and they will carry a total of the world's 84% passengers and cargo. It expects a rise of airlines' revenue to US$660 billion from $637 billion (2012).

American airlines are forecast to make US$3.4 billion and the Asian carriers US$3.2 this year (2013)

My guess is SIA may make a profit of at least S$1 billion which is a quarter of the combined Asian airlines' profit.
SIA has been tightening it's belts by taking a slew of cost cutting measures. Expats pilots were forced to leave and the local pilots were asked to go on no-pay leave. Crew's were put in less than 5-star hotel whenever possible. Their allowances were also slashed downwards. Every division and department in SIA are also cutting cost and all staff are asked to increase productivity.
These actions are vital not only for SIA's survival but to increase its profitability.

SIA made a profit of S$311 million for the period April to December last year, a drop of 17% as compared to the same period the year before. However, this year should be a good year for SIA as the US economy is on the road to recovery.

Gambatte SIA! We have faith in you.

Note: SIA closed $10.95 up 2 cents on a volume of 844,000 today. Wah the market believe what I've blogged about how SIA is gonna to make $1 billion this year......aiya got so many naive people too hor?


Anonymous said...

I can imagine the staff at SIA cc will be laughing at your prediction of SIA making $1 billion. Your ex colleagues like frogged eyed,fat aleem,botak gab,sloppy kasim and others will be poking fun at you BT. FYI they are monitoring your blog.

boh tong said...

They can laugh all they want to but if my forecast is wrong they will probably be out of job!

Anonymous said...

AM and M job is for life... dats why lots of people climb, kick, stab and poison their way up.

Too bad you guys shied away from the contest.

Anonymous said...

Ha Ha! I like all the names given to those as**oles. I really hope they're monitoring BT's blog. What can they do to BT? CI? Lol!