SIA Cargo
Singapore Airlines Cargo reported an operating loss of
$167.0 million in the year in review, during which the air
cargo industry was faced with overcapacity amidst weak
economic activity in consumer markets.
SIA Cargo continues to adopt a variable frequency approach
to better match capacity with demand for its freighter network.
On a planned basis, services were reduced during lull periods
and additional services were scheduled during periods of
stronger demand. The company also channelled resources to
operate more short and medium-haul services, with increased
frequencies into Indonesia and South West Pacific.
The company also added more destinations to its network
through an agreement with Scoot, a new medium and longhaul
low-cost airline based in Singapore, to manage its
bellyhold capacity.
SIA Cargo and China Cargo Airlines operate codeshare
services between Singapore, Bangkok and Shanghai, and
have a range of agreements allowing both airlines to
seamlessly tap into each other’s network and provide more
flexibility to customers. SIA Cargo holds 16 per cent equity
interest in China Cargo Airlines.
Besides widening its network, SIA Cargo is also strengthening
its competencies by pursuing new and high growth business
segments such as temperature-sensitive pharmaceutical cargo.
In addition, the company continues to foster close
partnerships with its key customers. The Global Partnership
Programme, which is running in its 12th year, recognises the
strong strategic relationship with key multinational players
supporting its business in the airfreight forwarding industry.
The Premier Partnership Programme recognises major local
forwarders in key markets and promotes SIA Cargo as the
preferred carrier to achieve bilateral growth. After a successful
inauguration year in 2012, The Premier Partnership
Programme is expanded to 18 key local forwarders across
11 countries for 2013.
As at March 2013, based on the electronic air waybill (e-AWB)
standards, SIA Cargo carried 23 per cent of total shipments to
electronic air waybill (e-AWB) ready destinations. In Singapore,
the adoption rate of e-AWB amongst freight forwarders has
also surpassed expectations, achieving 90 per cent of total
shipments from Singapore to e-AWB ready destinations.
033
ANNUAL REPORT 2012/13
SIA Cargo will
remain flexible
in deploying
capacity to better
match demand,
and maintain cost
discipline in this
challenging business
environment.
The outlook remains uncertain. Demand fluctuations
continue to be volatile. Jet fuel prices remain high. SIA Cargo
will remain flexible in deploying capacity to better match
demand, and maintain cost discipline in this challenging
business environment. The company will continue to grow
its footprint in higher value business segments and also
increase connectivity in emerging markets.
SIA Cargo received the “Award for Excellence (Air Carrier)”
from Air Cargo World during the year in review. It was also
named Best Air Cargo Carrier in Asia and Best Green Service
Provider (Airline) at the Asian Freight & Supply Chain Awards.
SIA Cargo is committed to protecting the environment and
sustainability through environmentally-friendly initiatives
and through partnership with Wildlife Reserves Singapore
to carry live animals on zoo-to-zoo conservation exchange
programmes. SIA Cargo also played a part in a significant
conservation initiative by transporting giant pandas Kai Kai
and Jia Jia on board a Boeing 747-400 freighter specially
operated from Chengdu to Singapore. The special shipment
was in support of Singapore Airlines’ sponsorship of the giant
panda collaborative programme between Wildlife Reserves
Singapore and the China Wildlife Conservation Association.
In addition, the company assisted less privileged children
and supported the arts and heritage through partnerships
with the Singapore Children’s Society and National
Heritage Board.