Singapore Airlines (SQ, Singapore Changi) has announced that it will re-integrate its cargo subsidiary Singapore Airlines Cargo (Singapore Changi) in a bid to streamline operations across the SIA Group. The reintegration is slated for completion by mid-2018 with the company saying there will be no effect on customers.
SIA Cargo will resume its former status of 'Cargo Division' within the Group, a position it held until July 1, 2001 when it was spun out into its own business. At its peak it operated seventeen B747-400(F), but has since trimmed back excess metal and now operates seven freighters. Greater capacity was achieved by using passenger aircraft bellyholds.
"Re-integrating SIA Cargo as a Division within Singapore Airlines makes sense from a business standpoint," said Goh Choon Phong, SIA CEO. "It will improve efficiency and offer greater flexibility for staff deployment by maximising synergies with the larger SIA business."
The re-established Cargo Division will also manage bellyhold space for Singapore Airlines subsidiaries SilkAir (SLK, Singapore Changi) and Scoot (TR, Singapore Changi).
Singapore Airlines this week released its financial results for the year 2016-17, showing an operating profit of SGD623 million (USD448 million), down 9% on the previous year. SIA Cargo recorded an operating profit of SGD3 million (USD2.2 million) against a decline in total revenue of SGD89 million. Average cargo load factor for the year was 63.2%. Most significantly, it was hit by a penalty from the European Commission on charges of being part of a price-fixing cartel, for which it has made provision of SGD132 million (USD95 million).
