Announcement

Collapse
No announcement yet.

SIA losses its Investment in Nokscoot

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

  • SIA losses its Investment in Nokscoot

    SIA losses 49% of its shareholdings in Nokscoot as it files for bankruptcy/
    The cessation of the airline also results in a one-off charge of S$123.6m to the Singapore Airlines Group in Q1 of FY20/21, from write downs of the airline’s seven Boeing 777-200s, and provisions for liquidation costs. The 7 ex-SIA 772s will be retired permanently.

  • #2
    3 of the 7 B772ER were flown to ASP yesterday for storage. HS-XBA, HS-XBF and HS-XBG. The other four will join soon.

    https://www.flightradar24.com/data/aircraft/hs-xba

    Comment


    • #3
      Originally posted by jul247 View Post
      3 of the 7 B772ER were flown to ASP yesterday for storage. HS-XBA, HS-XBF and HS-XBG. The other four will join soon.

      https://www.flightradar24.com/data/aircraft/hs-xba
      Actually two were already in ASP since 30 April (XBB and XBC). Only XBD and XBE are still in DMK.

      Comment


      • #4
        Originally posted by flyguy View Post
        SIA losses 49% of its shareholdings in Nokscoot as it files for bankruptcy/
        The cessation of the airline also results in a one-off charge of S$123.6m to the Singapore Airlines Group in Q1 of FY20/21, from write downs of the airline’s seven Boeing 777-200s, and provisions for liquidation costs. The 7 ex-SIA 772s will be retired permanently.
        SIA's jinx with JV continues. Seems their Virgin Australia JV is also in trouble .

        Comment


        • #5
          Originally posted by boing View Post
          SIA's jinx with JV continues. Seems their Virgin Australia JV is also in trouble .
          Ill-fated investments. Remember Ansett Australia?

          Comment


          • #6
            Originally posted by boing View Post
            SIA's jinx with JV continues. Seems their Virgin Australia JV is also in trouble .
            They also lose money on their virgin Atlantic investment previously.

            Comment


            • #7
              Originally posted by sbs2716g View Post
              They also lose money on their virgin Atlantic investment previously.
              Singapore Airlines has a knack for buying up stakes in other airlines with hope of gaining a foothold in "upcoming" new markets but yet they did or could not move the chess themselves possibly due to small stake they have/had.

              Here are some history:
              They bought 25% of Air New Zealand in 2000 only to see reduced to 4.5% after NZ Government bailed out Air NZ after almost bankrupted itself. The remaining 4.5% was sold in 2004 at substantial loss.

              The same year 2000 they bought 49% stake in Virgin Atlantic Airways in the hope of gaining share in the lucrative transatlantic market. However by 2007, all dreams frizzled out and subsequently in 2008 they issued interested parties to bid for its stake. It was sold to Delta Air Lines in 2012.

              It was SQ's second attempt at transatlantic market. Back in 1989, it formed a tripartite alliance with Delta Air Lines and Swissair, but terminated their partnership in 1999 after divesting their 5% equity stake in each other's company.

              Then the recent SQ purchasing a 10% stake in Virgin Australia in 2012.

              NokScoot was done in 2013. Hoping Vistara will be an exception.
              Last edited by jul247; 28 June 2020, 10:54 AM.

              Comment


              • #8
                Originally posted by jul247 View Post
                Singapore Airlines has a knack for buying up stakes in other airlines with hope of gaining a foothold in "upcoming" new markets but yet they did or could not move the chess themselves possibly due to small stake they have/had.

                Here are some history:
                They bought 25% of Air New Zealand in 2000 only to see reduced to 4.5% after NZ Government bailed out Air NZ after almost bankrupted itself. The remaining 4.5% was sold in 2004 at substantial loss.

                The same year 2000 they bought 49% stake in Virgin Atlantic Airways in the hope of gaining share in the lucrative transatlantic market. However by 2007, all dreams frizzled out and subsequently in 2008 they issued interested parties to bid for its stake. It was sold to Delta Air Lines in 2012.

                It was SQ's second attempt at transatlantic market. Back in 1989, it formed a tripartite alliance with Delta Air Lines and Swissair, but terminated their partnership in 1999 after divesting their 5% equity stake in each other's company.

                Then the recent SQ purchasing a 10% stake in Virgin Australia in 2012.
                If not wrong SIA bought the stake in VS for 600m quid and sold it for 200+m quid. think it will definitely be even worse if adjusted for inflation

                Comment


                • #9
                  Originally posted by reddevil0728 View Post
                  If not wrong SIA bought the stake in VS for 600m quid and sold it for 200+m quid. think it will definitely be even worse if adjusted for inflation
                  Yes, you are right.

                  SQ bought its 49% stake in Virgin Atlantic in 1999 for £600m (US$966.5 million). Delta Air Lines bought it for £224m (US$360m). £600m vs £224m

                  SQ's first investment in Air NZ was 8.3% stake at NZ$141 million (US$70 million) in 2000. Subsequently it upped the game by raising the stake to 25% by purchasing additional 16.7% stake at NZ$285 million (US$141 million). The stake value vapourised overnight in 2001, when NZ Government bailed out the company by giving out a US$367m loan for 83% stake. Singapore Airlines saw it stake reduced to 6.3% stake which was sold in 2004 for NZ$61.7 million (US$41.5 million). NZ$426 million vs. NZ$61.7 million

                  Virgin Australia's 10% stake was bought for US$108.5m (£71m), most likely will be zero-ed after VA flies again. The value of Singapore Airlines’ stake in Virgin has decreased from SGD490m in 2017 to SGD315m in 2019. US$108.5m vs ??

                  No figures was disclosed for NokScoot (XW) but SQ Group will take S$123.6m (US$89m) charges relating to XW's winding down.

                  As of October 2018, SQ has invested US$518.8m into Vistara. Two months ago they pumped in another Rs. 441 crore (US$58.3m), earlier this month another Rs. 500 crore (US$66.1M) into Vistara.

                  Comment


                  • #10
                    I remember they almost had a deal with China Eastern but for some reason, it didn't materialize.

                    Of all the JVs, their JV in India was the one which I was most apprehensive about. Indian aviation sector is littered with multiple airline carcasses after many went belly up. Their protectionist aviation and ever changing rules makes it a land mined field to play at.

                    Even Etihad, which has a bottomless money pit, backed 9W went belly up and there are talks of Air Asia India calling quits. All I can say is best of luck to SIA and Vistara.

                    Comment


                    • #11
                      Originally posted by boing View Post
                      I remember they almost had a deal with China Eastern but for some reason, it didn't materialize.

                      Of all the JVs, their JV in India was the one which I was most apprehensive about. Indian aviation sector is littered with multiple airline carcasses after many went belly up. Their protectionist aviation and ever changing rules makes it a land mined field to play at.

                      Even Etihad, which has a bottomless money pit, backed 9W went belly up and there are talks of Air Asia India calling quits. All I can say is best of luck to SIA and Vistara.
                      Well, you just need to get a lot of brown envelope ready, and grease the bureaucrats well enough not to be caught. Really can't see how TATA can play both sides LCC and premium carrier. They are heavily investing in Vistara and neglecting AirAsia India yet they expect the latter to pump in more money.

                      SQ has dabbled or flirted with idea in buying several airlines' stake before. They have tried unsuccessfully to buy into Taiwan's China Airlines, Qantas and South African Airways as well as Air India. Their proposal to buy a stake in Air India drew so much controversy from India public that they aborted the plan. As for China Eastern Airlines, back in 2008 they wanted to pay US$920m for 24% stake, with an ambitious plan to gain a foothold in Mainland China lucrative markets as many Mainlanders started to take to the skies then. The shareholders rejected the plan vehemently as its rival bidder Air China offered a higher bid. Not so rosy relationship between Air China and SQ since then I think. Air China owns 29.99% of Cathay Pacific. The rest is history........

                      Comment


                      • #12
                        Originally posted by MainlyMiles View Post
                        Actually two were already in ASP since 30 April (XBB and XBC). Only XBD and XBE are still in DMK.
                        Thanks for the correction, forgotten that XBB and XBC left back in April. 450 staff lost their job overnight. What a sad ending to a shortlived airline.

                        Comment


                        • #13
                          Originally posted by jul247 View Post

                          SQ's first investment in Air NZ was 8.3% stake at NZ$141 million (US$70 million) in 2000. Subsequently it upped the game by raising the stake to 25% by purchasing additional 16.7% stake at NZ$285 million (US$141 million). The stake value vapourised overnight in 2001, when NZ Government bailed out the company by giving out a US$367m loan for 83% stake. Singapore Airlines saw it stake reduced to 6.3% stake which was sold in 2004 for NZ$61.7 million (US$41.5 million). NZ$426 million vs. NZ$61.7 million
                          I believe that SQ's original intention, at the time, was to break into the lucrative Australian domestic market, by purchasing a stake in the then Ansett Australia. However, Air New Zealand, being the majority shareholder of AN, blocked the sale and took out and purchased yet a bigger stake in AN, and literally "forced" (forced is probably not the right word, but I think you all understand what I mean, hopefully) SQ to increase it's stake in NZ and therefore indirectly would become part-owners on AN as well. And then the Sept 2011 terrorist attacks happened, and AN collapsed literally overnight, pulling NZ together with it. I still remembered the then (Labour) Govt tried to get SQ to pump in more $$ to save NZ, but SQ didn't want to (who would be putting $$ into a sinking ship at the time..?). Adding to the drama, QF, at the time, were also trying to lobby the NZ Govt but "showing interest" in NZ and I believe the NZ Govt actually would have favoured a QF stake in NZ over SQ's... Anyway, as it turned out, neither airline got bought (more) into NZ and as a result, the New Zealand Government had to pump in $$ to save NZ since it is the national carrier, thereby devaluing SQ's investment in NZ.

                          Call it bad decision, poor foresight, or even pure bad luck, I believe, to a certain extend, SQ have been pretty unlucky with stakes in other airlines, especially in these shores. Who would have predicted at the time that the terrorist attacks in Sept 2001 would take place then, and who would have predicted the Covid-19 could occur causing some much pain worldwide..?

                          Comment

                          Working...
                          X