Corporate affairs of Singapore Airlines
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Singapore Airlines Singapore Airlines (abbreviation: SIA) is the flag carrier airline of the Republic of Singapore with its Airline hub, hub located at Singapore Changi Airport. The airline is notable for highlighting the Singapore Girl as its central figure in ...
is majority-owned by Singapore government investment and
holding company A holding company is a company whose primary business is holding a controlling interest in the securities of other companies. A holding company usually does not produce goods or services itself. Its purpose is to own shares of other companies ...
Temasek Holdings Temasek Holdings (Private) Limited, or simply Temasek, is a Singaporean state holding company owned by the Government of Singapore. Incorporated on 25 June 1974, Temasek owns and manages a total of US$496.59 billion (S$671 billion) in assets u ...
which holds 56% of voting stock.


Subsidiaries

Singapore Airlines has diversified into related industries and sectors, including ground handling, aircraft leasing, aviation engineering, air catering, and tour operations. It has also restructured itself by hiving off operational units as fully owned subsidiaries to maintain its core business as a passenger airline. The Singapore Airlines Group comprised 25 subsidiaries, 32 associates, and two joint venture companies in the
financial year A fiscal year (or financial year, or sometimes budget year) is used in government accounting, which varies between countries, and for budget purposes. It is also used for financial reporting by businesses and other organizations. Laws in many j ...
ending 31 March 2007. SIA sold all its equity share of 35.5% in a joint venture, Singapore Aircraft Leasing Enterprise, to the
Bank of China The Bank of China (BOC; ) is a Chinese majority state-owned commercial bank headquartered in Beijing and the fourth largest bank in the world. The Bank of China was founded in 1912 by the Republican government as China's central bank, repl ...
for US$980 million on 15 December 2006. There were suggestions to divest
SIA Engineering Company SIA Engineering Company Limited (commonly abbreviated as SIAEC) () is a Singaporean company, specialising in aircraft maintenance, repair and overhaul ( MRO) services in the Asia-Pacific. It is a wholly owned subsidiary of the Singapore Airline ...
and Singapore Airport Terminal Services, two of SIA's largest subsidiaries. Former
Minister Mentor Minister Mentor was a position in the Cabinet of Singapore created in 2004 as part of a transition in political leadership. The only person to hold the post, between 2004 and 2011, was Lee Kuan Yew. Background On 12 August 2004, when Lee Hsien L ...
Lee Kuan Yew, for one, voiced his opinion in December 2005 that Singapore Airlines should divest these two companies to focus on its core business of air transportation. Singapore Airlines has evaluated the divestment opportunity and Singapore Airport Terminal Services (which was renamed as SATS Group) was diversified from the group on 1 September 2009. On 18 May 2016, Singapore Airlines established
Budget Aviation Holdings Budget Aviation Holdings is a Singapore-based holding company for a low-cost carrier operating in the Asia-Pacific region, consisting of Scoot Scoot Pte Ltd, operating as Scoot, is a Singaporean low-cost airline and a wholly owned subsidiary ...
, a holding company to own and manage its budget airlines Scoot and Tigerair following the delisting of Tigerair from the Singapore stock exchange. On 19 May 2017, Singapore Airlines announced that
Singapore Airlines Cargo Singapore Airlines Cargo (abbreviation: SIA Cargo) is the unit within Singapore Airlines (SIA) responsible for air cargo operations. It was incorporated in 1988. SIA Cargo manages the cargo operations of SIA's fleet of freight- and passenger airc ...
would be re-integrated as a division within the SIA group, expected to be completed in the first half of 2018, after which Singapore Airlines Cargo will become the airline's cargo division. On 18 May 2018, it was announced that
SilkAir SilkAir Singapore Private Limited, operating as SilkAir, was a Singaporean airline with its head office in Changi, Singapore. It was a wholly owned subsidiary of Singapore Airlines and at its peak operateed scheduled passenger services from Si ...
would undergo cabin refreshes before being merged with the parent brand Singapore Airlines. At the time, it was anticipated that the cabin revamps would start in 2020. Companies in the Singapore Airlines Group include:


Scoot

In May 2011, Singapore Airlines revealed plans to launch a low-fare airline subsidiary within a year. The wholly owned subsidiary, New Aviation, was incorporated on 17 June 2011 with an issued and paid up capital of S$1.Singapore Airlines unveils Scoot budget carrier
/ref> On 1 November 2011, it was announced that the low-cost airline would be named Scoot and would begin flights from mid-2012 with a fleet of four
Boeing 777-200 The Boeing 777, commonly referred to as the Triple Seven, is an American long-range wide-body airliner developed and manufactured by Boeing Commercial Airplanes. It is the world's largest twinjet. The 777 was designed to bridge the gap betw ...
wide-body aircraft. focused on medium- and long-haul routes. The airline will be wholly owned but operated independently and managed separately from Singapore Airlines.


Vistara

In 2013, Singapore Airlines announced the formation of a joint venture with India's
Tata Sons Tata Sons Private Limited is the parent company of the Tata Group and holds the bulk of shareholding in the Tata group of companies including their land holdings across India, tea estates and steel plants. It is a privately owned conglomerate of ...
, which was later christened as Vistara (means "limitless expanse" in
Sanskrit Sanskrit (; attributively , ; nominally , , ) is a classical language belonging to the Indo-Aryan branch of the Indo-European languages. It arose in South Asia after its predecessor languages had diffused there from the northwest in the late ...
). The full-service airline, based in New Delhi's
Indira Gandhi International Airport Indira Gandhi International Airport is the primary international airport serving Delhi, the capital of India, and the National Capital Region (NCR). The airport, spread over an area of , is situated in Palam, Delhi, southwest of the New De ...
commenced operation on 9 January 2015. As of March 2020, the airline serves 36 cities across India, Thailand, Sri Lanka, the United Arab Emirates (UAE), Nepal, and Singapore with a fleet of
Airbus A320 The Airbus A320 family is a series of Narrow-body aircraft, narrow-body airliners developed and produced by Airbus. The A320 was launched in March 1984, Maiden flight, first flew on 22 February 1987, and was introduced in April 1988 by Air F ...
, Boeing 787 and Boeing 737-800NG aircraft.


Operational investments

The airline has invested in other airlines in a bid to expand beyond its Singapore base. In 1989, it formed a tripartite alliance with
Delta Air Lines Delta Air Lines, Inc., typically referred to as Delta, is one of the major airlines of the United States and a legacy carrier. One of the List of airlines by foundation date, world's oldest airlines in operation, Delta is headquartered in Atla ...
and
Swissair Swissair AG/ S.A. (German: Schweizerische Luftverkehr-AG; French: S.A. Suisse pour la Navigation Aérienne) was the national airline of Switzerland between its founding in 1931 and bankruptcy in 2002. It was formed from a merger between Bal ...
, but terminated their partnership in 1999 after divesting their 5% equity stake in each other's company. The airline also purchased 25% of Air New Zealand in 2000. However following the near collapse of Air New Zealand, the New Zealand government bought into the airline to rescue it from bankruptcy, reducing Singapore Airlines' stake to 4.5%. This was subsequently sold in October 2004 at a substantial loss. SIA bought a 49% stake in Virgin Atlantic on 30 March 2000 worth £600 million in cash in the hope of leveraging on it on the lucrative transatlantic market, but by 2007, there had been reports of underperformance and the possibility of divesting its stake. On 14 May 2008, the company formally announced an invitation for offers for its Virgin Atlantic stake, and publicly acknowledged that its stake in the airline had "underperformed". On 12 December 2012, Singapore Airlines sold its 49% stake in Virgin Atlantic for US$360 million to
Delta Air Lines Delta Air Lines, Inc., typically referred to as Delta, is one of the major airlines of the United States and a legacy carrier. One of the List of airlines by foundation date, world's oldest airlines in operation, Delta is headquartered in Atla ...
. In September 2004, the airline entered the
low-cost carrier A low-cost carrier or low-cost airline (occasionally referred to as '' no-frills'', ''budget'' or '' discount carrier'' or ''airline'', and abbreviated as ''LCC'') is an airline that is operated with an especially high emphasis on minimizing op ...
market by establishing
Tiger Airways Tiger Airways Singapore Pte Ltd, operating as Tigerair, was a budget airline headquartered in Singapore. It operated services to regional destinations in Southeast Asia, Bangladesh, Taiwan, China and India from its main base at Singapore Changi ...
with a 49% stake, in partnership with
Indigo Partners Indigo Partners, LLC is an American private equity firm which has a controlling interest in the American Frontier Airlines and Chilean low-cost JetSmart, as well as holding stakes in Mexican budget airline Volaris and European low-cost carrier ...
(24%); Irelandia Investments, the private investment arm of Tony Ryan and his family, (16%); and
Temasek Holdings Temasek Holdings (Private) Limited, or simply Temasek, is a Singaporean state holding company owned by the Government of Singapore. Incorporated on 25 June 1974, Temasek owns and manages a total of US$496.59 billion (S$671 billion) in assets u ...
(11%). Tiger Airways was eventually listed on
Singapore Exchange The Singapore Exchange Limited (SGX) is a Singaporean investment holding company that provides different services related to securities and derivatives trading and others. SGX is also a member of the World Federation of Exchanges and the Asian ...
in February 2010, reducing SIA's share of ownership to 34.4%. SIA purchased a 10% stake in
Virgin Australia Holdings Virgin Australia Holdings Limited is the holding company that owns and operates Virgin Australia, Virgin Australia International Airlines and Virgin Australia Regional Airlines. It previously operated Pacific Blue Airlines, Tigerair Australia a ...
in October 2012. When it collapsed in April 2020, SIA owned 20%.


Labour

The Singapore Airlines Group employed a total of 21,534 staff members at the end of the fiscal year on 31 March 2011. The parent airline itself employed 13,942 (47.3%), of which there are 2,174 pilots and 6,914 cabin crew. The group's employees are represented by five labour unions, namely the Singapore Airlines Staff Union (SIASU), the SIA Engineering Company Engineers and Executives Union (SEEU), the Singapore Airport Terminal Services Workers' Union (SATSWU), the Air Transport Executives Staff Union (AESU) and the Air Line Pilots' Association Singapore (ALPA-S). Relations between the labour unions and the group management have been testy at times, particularly after a series of wage cuts, retrenchments, and early retirement affected staff morale during and after difficult economic conditions such as the SARS outbreak in 2003. The ALPA-S alone has been involved in no less than 24 disputes with group management since its registration in May 1981 (itself formed after its predecessor, the Singapore Airlines Pilots Association had 15 EXCO members charged and convicted for initiating illegal industrial action in 1980 in the wake of disputes with management and the SIAPA was deregistered on 26 February 1981) up to 30 November 2003, when the
Ministry of Manpower (Singapore) The Ministry of Manpower (MOM; ms, Kementerian Tenaga Manusia; zh, 新加坡人力部; ta, மனிதவள அமைச்சு) is a ministry of the Government of Singapore responsible for the formulation and implementation of policies r ...
amended the Trade Unions Act to overrule an item in ALPA-S's constitution requiring formal ratification from the general membership for negotiation agreements involving the executive committee. In 2007, the airline was in the spotlight again when ALPA-S disagreed with the management's proposed salary rate for pilots flying the Airbus A380, and the case had to be settled by the Industrial Arbitration Court. The salary ranges of SIA's pilots were made public during the first day of the hearings, and the press noted that the airline's 935 captains who fly the Boeing 777 received higher salaries (over S$270,000) at the midpoint of their salary brackets compared to the company's 36 vice-presidents (S$233,270). Disputes have also affected the unions, some so severe that they have attracted the intervention of the government. The internal feuding in ALPA-S which led to the ousting of the entire 22-member executive committee on 17 November 2003 was attributed to "internal politics" and theories that it may involve former pilots, including those involved in the deregistration of SIAPA. In January 2008, NTUC secretary-general
Lim Swee Say Lim Swee Say (; born 13 July 1954) is a Singaporean former politician who served as Secretary-General of the National Trades Union Congress between 2005 and 2015, Minister for Manpower between 2015 and 2018, Minister in the Prime Minister's Of ...
spoke up against legal action by parties involved in an internal dispute in SIASU. On 2 April 2007 the airline group and its unions jointly launched the "Singapore Airlines Group Union-Management Partnership" and the Labour Movement 2011 (LM2011) in a bid to improve their relations, each pledging to be "pro-worker" and "pro-business" respectively. In April 2008, the airline's chairman Stephen Lee described the relations between management and the unions as "stable and cordial" in the last two years, with better communication between them. He alluded that several government figures, including Minister Mentor Lee Kuan Yew, has intervened to help alleviate differences, and that there has been more regular meetings and exchanges between the two sides.


Financial performance


Operating performance


Marketing and sponsorships

From 2000 until 2015, SIA was the title sponsor of the Singapore Airlines International Cup, a Group 1
flat Flat or flats may refer to: Architecture * Flat (housing), an apartment in the United Kingdom, Ireland, Australia and other Commonwealth countries Arts and entertainment * Flat (music), a symbol () which denotes a lower pitch * Flat (soldier), ...
horse race Horse racing is an equestrian performance sport, typically involving two or more horses ridden by jockeys (or sometimes driven without riders) over a set distance for competition. It is one of the most ancient of all sports, as its basic p ...
. In April 2014, SIA announced that it has signed an agreement with the
Formula One Formula One (also known as Formula 1 or F1) is the highest class of international racing for open-wheel single-seater formula racing cars sanctioned by the Fédération Internationale de l'Automobile (FIA). The World Drivers' Championship, ...
Group to be the Title Sponsor of the Formula 1 Singapore Grand Prix, taking over from
Singtel Singapore Telecommunications Limited, commonly known as Singtel, is a Singaporean telecommunications conglomerate and one of the four major telcos operating in the country. The company is the largest mobile network operator in Singapore with ...
.


Branding

Branding and publicity efforts have revolved primarily around flight crew, in contrast to most other airlines, who tend to emphasise aircraft and services in general. In particular, the promotion of its female flight attendants known as
Singapore Girl Singapore Girl is a consistent visual advertising slogan applied to depictions of flight attendants of Singapore Airlines (SIA) dressed in the distinctive ''sarong kebaya'' SIA uniform, in use since 1972, and remains a prominent element of SIA's ...
s has been widely successful and is a common feature in most of the airline's advertisements and publications. This branding strategy aims to build a mythical aura around the Singapore Girl, and portray her as representative of Asian hospitality and grace and the airline's training program for both cabin and technical flight crew complement this objective. This is similar to the tactics that Pan Am used as they also tried to promote their stewardesses as a big attraction to flying on the airline. Dressed in a version of the '' Sarong Kebaya'' designed by Pierre Balmain in 1968, the uniform of the Singapore Girl has remained largely unchanged. Stewards previously wore light-blue business jackets and grey trousers. Since June 2008, this has been redesigned by Christophe Galibert, artistic Director of Balmain Uniformes. The new steward's uniform now features a single-breasted navy blue suit (jacket and trousers), a sky blue shirt and different coloured striped ties. The tie colours differentiate the four ranks of cabin crew: inflight supervisor, chief steward(ess), leading steward(ess), and steward(ess). Although a successful marketing image for the airline, the "Singapore Girl" emphasis received criticisms for its portrayal of women as subservient to males. Feminist groups say that its cultural references are outdated and that most Singaporean women today are modern and independent. On 9 January 2007, the airline announced it would put to tender its existing advertising contract with Batey Ads, the Singaporean company headed by founder Ian Batey, who was responsible for building up the Singapore Girl brand name and its partner since 1972. The image of the Singapore Girl would still remain, although SIA will now focus on advertising and promoting its modern fleet and technology instead. On 16 April 2007, the airline appointed New York-based advertising agent TBWA to handle its creative advertising for the airline. The contract is worth S$50 million per year over the following five years. Stephen Forshaw, SIA's Vice-President of Public Affairs, said they will start the new branding campaign "as early as there is a practicable opportunity". This change in advertising agency will not affect SIA's buying media agency, which is presently MEC. The Singapore Airlines logo is a bird, inspired by a silver kris, which comes from the keris, a dagger from Southeast Asia prominently featured in the region's myth and folklore. The keris is central in Singapore Airline's branding, such as the SilverKris lounge and the KrisWorld entertainment system. The logo is featured on the tailfin and in the airline's collaterals, and has remained unchanged since Singapore Airlines' inception from the split of Malaysia–Singapore Airlines. The logotype and stripes underwent a minor tweak in 1987."Mr SIA Fly Past: Introducing the life and times of a legend- Lim Chin Beng- who was instrumental in the creation of Singapore Airlines" (2015) by Ken Hickson; . Chapter 4 Foreword The livery had a recent change, which saw the "Singapore Airlines" logotype enlarged and moved towards the front and the "bird" logo on the tailfin enlarged, in a similar fashion to the livery variant used on the Airbus A380. However, the stripes and the "bird" remain the same.


References

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