Airline flies the flag for Singapore

Business Asia, May 31, 1999

Best Asian Business Activity in Australia

Even Asia's debilitating regional financial crisis can't keep down an airline such as Singapore Airlines.

The carrier has recently been buoyed by better-than-expected 1999 results, with a net profit of S$1.03 billion (US$607 million) posted for the year to March 31.

The result was significantly higher than market expectations. Singapore Airlines also continues to fly high in the Business Asia News Magazine Awards, winning the Best Asian Activity in Australia category for the second year in a row.

The national carrier for Singapore, the airline is no stranger to awards.

It boasts many wins in international competitions, including the Best Transpacific Airline for the 1999 OAG Airline of the Year Awards, World's Best Value Airline in 1998 by Travel and Leisure magazine, Best Airline in the World by the Zagat Airline Survey 1997 and Best International Airline 1997 (for the ninth year in a row) by Conde Nast Traveller.

SIA expects more positive times this year. A statement accompanying its end-of-year results said the company believed. Asia's economic decline had bottomed out.

"Overall, the outlook for 1999-2000 is for better growth in cargo tonnage and revenue," the statement said. Cargo capacity is budgeted to grow by 6.5 per cent as strong exports from Asia to Europe and America are expected to continue.

Despite the upbeat predictions, SIA said its outlook for passenger traffic was still uncertain and yields would continue to be under pressure from price competition, particularly on Asian routes, because of excess capacity.

It budgeted passenger capacity to grow by 4.5 per cent, with a new focus being placed on growth markets in Europe and the South Pacific.

SIA's capacity production grew by 7.7 per cent over 1997-98 to 15,652 million tonne-kilometres as a result of frequency increases and the impact of additional services introduced in 1997-98.

The statement said SIA needed to seek avenues for profitable growth outside Singapore.

"Investments in airlines in growing markets will provide SIA with high-growth opportunities and produce higher profits in the long run," it said.

Other finalists in this category were:

* Malaysia Airlines;

* Stamford Hotels and Resorts; and

* Thakral Holdings.