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SIA maintained its commitment to operating one of the world's most modern fleets
Jan 01 - 14, 2001
In the air, on the ground, and on the balance sheet the SIA Group finished the year well positioned to grow faster, reach further and attain higher levels of service.
The Airline successfully navigated the remaining period of economic turbulence in Asia, outperformed rivals and recorded improved operating profits in the year ending 31 March 2000.
Entry into the Star Alliance, a major new acquisition and the proposed stock market listing of two major subsidiaries marked a new era in the SIA Group's development.
The Company's operating profit for the financial year 1999-2000 was $817 million, an increase of $269 million (48.9 per cent) from 1998-99. The Group's operating profit rose $286 million (33.4 per cent) to $1,140 million. After accounting for a surplus of $86 million from the sale of aircraft, spares and engines, dividends received from subsidiaries of $198 million and profit of $169 million from sale of investments, the Company's profit attributable to shareholders was $1,267 million, up $453 million (55.7 per cent). The Group's profit attributable to shareholders increased $131 million (12.6 per cent) to $1,164 million.
For the year ending 31 March 2000, SATS and SIAEC recorded strong 12-month operating profits of $181 million and $88 million, up 13.7 per cent and 42.2 per cent respectively on the year before. SlA's 49 per cent acquisition of Virgin Atlantic fittingly came at the dawn of the year 2000. The £551.25 million purchase, the Group's first major stake in a foreign airline, has given SIA a flying start as it seeks to become a global group of airline and airline-related businesses in the new century.
The synergies derived from linking the complementary route networks of SIA and Virgin, in particular Virgin's transatlantic network, will allow both airlines to grow faster than either can manage on its own.
The link with Virgin, together with SlA's entry into the Star Alliance on 1 April 2000, has increased global route options for SIA's customers.
While the Airline was busy strengthening external links during the financial year, it also lifted the limit on foreign ownership of SIA, and the uniting of the foreign and local share tranches was rewarded with a higher share price.
Meanwhile, Australia and New Zealand Banking Group chairman Charles Goode became the first non-Singaporean to be appointed to the SIA Board.
International as well as local investors were promised the opportunity to become shareholders in Singapore Airport Terminal Services (SATS) and the SIA Engineering Company (SIAEC), as SIA decided to list both subsidiaries on the Singapore Exchange.
SIA maintained its commitment to operating one of the world's most modern fleets, exercising options to acquire 10 new Boeing B777-200ER aircraft from 2001.
Maintaining a modern fleet
In June 1999, SIA announced it would exercise options to acquire 10 B777-200ER (extended range) aircraft, which were part of an order placed in 1996.
These aircraft will be delivered between 2001 and 2003,, and will progressively replace SIA's A340-300s on the "thinner" long-haul routes to Europe and North America.