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Is SIA on cost cutting or getting slack?
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chartistkao1
Supreme |
18-Aug-2021 09:24
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https://images.app.goo.gl/1zYCYvm1XxWvPRfg7 | ||
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Bigdaddy
Veteran |
14-Aug-2020 09:24
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will probably take a few years to be back to the preiovusl norm | ||
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sgng123
Supreme |
28-May-2017 23:04
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Malaysia airline restructuring exercise in 2014 provide insight to sia restructuring, malaysia airline delisted and 6000 jobs go bye bye. Whether it qantas, cathay pacific or malaysia airline common thing is job cutting no escape, when sia announced it layoff later this year, prepare for lot of tears and anger among employee, now they all no mood to work ricebowl about to break lol. Market would cheer when sia finally drop the axe which should be done 5 years ago long overdue. | ||
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sgng123
Supreme |
28-May-2017 02:45
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If sia follow qantas transformation plan on last 2 years, prepare for big shakeup. Qantas layoff 6000 employee in that exercise and split up their international and domestic line plus tie up with other airlines. It gona be very bloody if sia follow similar transformation, lot of sia employee gona eat dirt big time. SIA cargo axed and absorbed back to sia while scoot tiger merge to form budget line, silkair most likely would either be absorbed back to sia or intergrate with budget division. Siaec stake might be divested or redistributed back to investors as sia simplified it group structure to improve efficiency. | ||
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sgng123
Supreme |
28-May-2017 02:34
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Now trend is budget airtravel, all the growth there. Premium travel unless u offer more than ur competitor else u lose market share. Middle east airline steal premium market share as they all are not listed and their gov bank roll their credit to buy newer planes and better perf with no regard to profit margin. They go all out with gov backing, no listed airlines can fight like that. Basically cheating loh but again middle east gov very rich and they burn billions to get market shares. To fight back sia need to go private then on same playing level as they could tap on temasek triple a credit rating to get cheap cheap debt plus no pressure to maintain profit margin. Middle east airline now feeling pain as their gov giving less support as oil price crash and reserve thinning out. It time sia strike back with temasek backing in full, taking back market share lost in last 5 years.
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sgng123
Supreme |
28-May-2017 02:22
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Nah it the same old thing happening again and again, no layoff just pay cut across all employee with management taking a bigger hit. To improve service standard in premium flight, need to put in investment capex. SIA already committed to 30b over next 5 year in upgrading the hardwares, not much left for improvement service. Last step might stop dividend payout and delist sia end of road coming soon. Anyway not much buyers or sellers, just 4.7mil share to knock off 7.3% off stock is kind of ridiculous. A share buyback most likely lift sia back to it book value depending whether they wanna do it. Need 6 months to do transformation, cathay pacifc only need 2 months then all the immediate cost saving through lay off lift the stock 10% yoy lol. Cathay pacifc lose 160m full years, cut jobs stock go up by 10%, sia 380mil profit talk cock nothing done stock give up this year gain in 2 trading day lol. | ||
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beginners
Veteran |
27-May-2017 22:34
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should cut ceo & top management pay or no performance bonus. I think the performance bonus can save a lot of ground staffs and crews. Cutting the pay or layoff the ground staffs only affect the morale.
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Trade8668
Member |
27-May-2017 22:21
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SIA started their downfall a few years back when they focus on KPI instead of ideas to capture market share.. Every management staff are dead set to lift their KPI thru cost cutting and did not care about losing staff moral that in turn lose passengers. Passengers in this new market seldom complaint, they just switch to other Airlines (there are a lot of better choice out there ). CEO Goh is too focus on Budget airlines and stripping the main Company (SIA) just to fund now the defunt Tiger and giving aircraft to Scoot. He is not familiar with the structure of Budget airlines and have too many staff + high cost to run a budget airline (imagine a mix vegetable stall complete with Director,Senior VP, Vp, Senior Manager, F& B Director and manager) We need a good CEO that know how to retain passengers that are willing to fly full service airlines and have good marketing skill to attract new customer.. Profit derive from cost cutting and cutting staff pay will back fire and now we see the result of such bad practices |
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sgng123
Supreme |
27-May-2017 11:55
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Additional, do not assume sia is a toothless tiger. The massive free cash stash of 3.8b and reserve cash of 11b topped most of the better performed blue chip out there. Currently sia just suffer from poor leadership on the board, the ceo do a good job it the board directors that the problem, they cannot adapt fast enough to ever changing aviation landscape. Hope the new chairman a banker know the problem and address it. | ||
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sgng123
Supreme |
27-May-2017 11:48
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Most likely worst result would be pay cut across the group with management post taking the bigger hit, typical of gov linked company hr policy. With yield erosion at main business and urgent need to expand and meet the need of changi expansion, dividend might be stopped. With that in mind, SIA might be privatised by temasek as it take years for any transformation to see results. The question now is what is the true value of sia group, current book value is 11 dollars. So minimum privatisation is somewhere there, potential of siaec stake to be unlocked and returned to investors through right issues. Going private service standard and perf for customers would be improved as money reserved for dividend payout would be used. That how middle east airlines can expand so aggressively and give good value for buck service as they not under investor pressure to squeeze margin. Also the reasons why us airlines complain middle east airlines subsudised by state as they all not listed, credit being rolled by state. | ||
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incirent
Senior |
27-May-2017 02:38
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Job cut of 20/30% is too drastic given the fact that SIA was Uncle Lee' s pet project. How about a salary freeze for all staff earning more than S$5,000 per month and also, to trim the staff strength through natural attrition. This might be the win/win solution for all interested parties. |
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sgng123
Supreme |
26-May-2017 11:09
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Don matter much in investor term, profitability is key rest just junk. If cannot do it, might as well close shop and go back to gov. That why emirate, qatar and middle east airlines all not listed, they know it impossible to keep up with investors demand and drive expansion in low growth economy. Once SIA cut if they can do it, the stock would zoom as the expenditure would drop big time to overlap the yield erosion. But i gonna bet sia not gonna cut they just come out with fancy term of redesign jobs or whatever and later get punished by market again. Stock would build for next massive drop to steal headline in news lol, load up then dive on inaction from sia loo. Temasek might act to protect sia brand as it need bank help in capex expense in next 5 years, don be like noble no credit and banks don wanna help, now waiting to be bankrupt. Too hard for sia to cut heads and perf as this is LKY legacy company. | ||
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waters
Senior |
26-May-2017 08:40
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Alot of stewardess will end up uber driver or freelance service providers | ||
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sgng123
Supreme |
25-May-2017 12:52
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Sia management now gona get it rough with big investors pushing for layoff and sg gov push to protect jobs. Caught between a rock and reef, cannot offend both side as it would affect capex spending support 30b for next 5 years from big investors and major investor temasek to push for expansion to support changi expansion. Last resort would be to go private then everything get resolved as capex spending would be all funded by cpf money no need to rely on outside investors lol. Can expand and pay high pay to worms with cpf money and no need to account for till it due lol. | ||
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sgng123
Supreme |
25-May-2017 12:17
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That why the 7.3% dive last friday, it a warning shot by market for sia to cut jobs or go private. Currently share slowing recoverinb and building for the next big warning shot. The 7.3% dive get much coverage and shake up the group director mind, it is cut or go private. | ||
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Steady28
Senior |
25-May-2017 07:49
Yells: "huat ah" |
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this will hardly happen. the gung ho mgmt will take care of themselves first at the expense of everything else. that' s why they say re-train, job re-design and everything else. why not they say no bonus for the next 3 years, and instant pay cut for the mgmt. we reward based on performance not just some fallacy that we can do better if we hedged the oil prices better, and if there is no competition from those middle eastern and low budget airlines. they cant keep up with the pace of what' s happening and staying abreast. too comfortable in their comfort zone.
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sgng123
Supreme |
24-May-2017 23:46
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5% not much impact, 30% instant panaroid everyone cannot sleep lol. Qantas cut 6000 out of it 40000 in 2016 15% knock off and now they doing ver good. Sia need to be even better, double dosage and do complete clean up of high pay worms. | ||
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Goldfinger
Supreme |
24-May-2017 22:58
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Cut 5% of staff and then once fear sets in among the rest, they will be willing to accept 20%-30% pay cut. | ||
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sgng123
Supreme |
24-May-2017 22:35
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Cathay pacific stock price roaring over 10% after the job cut news, guess sia under immense pressure to do the same. Cut 30% of total employee and 30% paycut of top management the u see sia hitting multiple high unseen these past years. Laying off employee most effective but most hatred method. Last friday 7.3% dive is warning shot by instituational investors, cut headcount or be cut lil. |
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Goldfinger
Supreme |
24-May-2017 07:31
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I just don't see this company returning to its glory days - management and staff too arrogant, cost and salary structure way too high, the other airlines are moving faster and surpassing. At least Cathay realises and doing something about it. | ||
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