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.