End of the nonstops to LAX & EWR on the A345

[9V-JKL]

Is that at Mc Carren airport (LAS) with view towards the Mandalay Bay hotel? Looks like it.

It is. Sands has bought one apparently.

[MAN Flyer]

According to an article I read this week, I can't remember where, SQ's fuel use is down 3% on the back of dropping the SIN-EWR flights.

It said two have been sold and three are parked up somewhere, are those three still at Changi ?.

[milehighj]

According to an article I read this week, I can't remember where, SQ's fuel use is down 3% on the back of dropping the SIN-EWR flights.

It said two have been sold and three are parked up somewhere, are those three still at Changi ?.

Haven't seen any of the 345s in a while. The ex-BI leased 772ER is still parked up north of NC.

[9V-SIA]

Haven't seen any of the 345s in a while. The ex-BI leased 772ER is still parked up north of NC.

I thought I read somewhere they were sold to a South American airline?

And wasn't one sold to Adelson, the MBS owner?

[MAN Flyer]

And wasn't one sold to Adelson, the MBS owner?

Yes. The two already sold have apparently gone to Las Vegas Sands group and the other to the Saudi Royal Family.

[HUGE AL]

Yes. The two already sold have apparently gone to Las Vegas Sands group and the other to the Saudi Royal Family.

Adelson is one cheap…guy. Surprised he went for the gas guzzler.

[yflyer]

Oil just dipped under USD50 a barrel.

Any chance of SQ restarting non-stop SIN-LAX, SIN-EWR? How about starting up SIN-SFO?

[SQ22]

I certainly wouldn't mind hopping on to SQ38 or SQ22 again! Then again, would it make sense for SIA to invest in a huge CAPEX based on what may be a temporary dip in oil prices?

[MAN Flyer]

Any chance of SQ restarting non-stop SIN-LAX, SIN-EWR? How about starting up SIN-SFO?

I think you can forget the ULH's. What if the price of oil goes back up and what aircraft would they use anyway ?

[FN-GM]

Airlines usually agree a fixed price for fuel for a fixed period (fuel hedging). There is a good chance SQ are paying the higher price before the dip in oil prices anyway.

[Wan1dap]

Airlines usually agree a fixed price for fuel for a fixed period (fuel hedging). There is a good chance SQ are paying the higher price before the dip in oil prices anyway.

Not quite.... Most commercial airlines pay for fuel consumed based on prices relating to the Platts average which is most relevant to the point of uplift. These prices are usually averaged over the prior week's or month's daily levels, depending on the contract. So for operational fuel, SQ will have been benefiting from the fall on a rateable basis as it happened (with some lag).

Separately, airlines (and shipping companies BTW) will take out compensatory derivative options (in simple terms "hedges") in order (in theory) to smooth out their effective fuel price fluctuations. These would typically be staggered over various periods of time, and will involve buy and sell contracts to allow optimum flexibility to react to actual conditions.

The net effect will ultimately depend on the smartness of their traders and their risk policies. As for route planning, I assume they will have a long-term view of fuel markets (or will use advisers) and will plan accordingly.

Suffice to say that fundamentals still point to higher levels over time, but the industry has always been subject to long and short-term boom/bust cycles. Also bear in mind that final fuel price is dependent on refinery infrastructure and constraints - crude price alone is not the only determinant.

[SQ22]

Airlines usually agree a fixed price for fuel for a fixed period (fuel hedging). There is a good chance SQ are paying the higher price before the dip in oil prices anyway.

This is exactly right. This is also the reason why you don't see the fuel surcharges going down despite the drastic drop in global oil prices.

[Wan1dap]

This is exactly right. This is also the reason why you don't see the fuel surcharges going down despite the drastic drop in global oil prices.

Refer to my previous post....

I should add that, like any sensible company, they will maximise the benefits provided by favourable fluctuations as long as possible, if customers will pay. Shareholders would expect nothing less.

[HUGE AL]

Oil just dipped under USD50 a barrel.

Any chance of SQ restarting non-stop SIN-LAX, SIN-EWR? How about starting up SIN-SFO?

This is exactly right. This is also the reason why you don't see the fuel surcharges going down despite the drastic drop in global oil prices.

I can think of other reasons that would trump this.

[yflyer]

No I don't have a crystal ball, and I'm not expecting SQ to restart this any time soon, but I do hope that some time in the future, it does become profitable to fly ultra long haul using the new generation of long range twins coming up from Boeing/Airbus, whether through advances in efficiency, or in the unlikely event that the current oil price dip is not a one-off...

I have very fond memories of an 18 hour SIN-EWR in Executive Y in 2006. As a passenger, I would not fly this sector in regular Y, but I would not mind paying a Premium Y fare for this ULH flight.

I am still hoping that the number crunchers can find a way for this to work in my lifetime.