Singapore Airlines’ (SIA) wholly-owned
subsidiary, SIA Cargo, is to be re-integrated as a division
within SIA, a move intended to improve efficiency through
greater synergy with the wider SIA Group.
is expected to be completed in the first half of 2018, when SIA
Cargo will become the ‘Cargo Division’ of SIA.
It will be business
as usual from a customer perspective, as there will be no
change to SIA Cargo’s operations.
Seven Boeing 747-400 Freighter aircraft will continue to be operated, while the Cargo
Division will continue to manage the passenger aircraft ‘bellyhold’
space for SIA, SilkAir and Scoot.
SIA Cargo was a Division
of SIA until 1 July 2001, when it became a separate company
within the SIA Group. At the time, it was in the process of
growing its fleet to up to 17 Boeing 747-400Fs, and it was better
suited to carry out its expansion as a standalone all-cargo
The airfreight market has since seen structural change
however, and SIA Cargo’s freighter fleet has been reduced in
recent years to the current seven aircraft while the proportion
of revenue from passenger aircraft ‘bellyhold’ capacity has
Despite the smaller freighter fleet,
SIA Cargo’s overall capacity, including that from passenger
aircraft, still grew 4-5% in each of the past two financial
The majority of SIA Cargo’s nearly 900 employees will be
retained in the new Cargo Division, while some will be
transferred to other SIA divisions.
For a group of staff for whom alternative
job positions have yet to be confirmed, placement opportunities
will be facilitated elsewhere within the SIA Group.
“Re-integrating SIA Cargo as a
Division within Singapore Airlines makes sense from a business
standpoint. It will improve efficiency and offer greater
flexibility for staff deployment by maximising synergies with
the larger SIA business,” said SIA CEO, Mr Goh Choon Phong. “Importantly, the Cargo Division will continue to provide
high-quality products and services that customers have come to
expect from SIA Cargo. Cargo remains an important part of our
business, and we remain committed to operating a fleet of
dedicated freighter aircraft to carry specialised cargo and
provide feed to the overall SIA Group network.”
The move is
not expected to have a material impact on SIA’s financial
performance in the 2017/18 financial year.
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