Singapore Airlines (SIA) will re-integrate its SIA Cargo subsidiary as a division of the mainline carrier, in a move intended to improve its operating efficiency.
SIA says that the wholly-owned unit was separated out in 2001, when it intended to grow into a standalone all-cargo carrier.
More recently, however, the market has seen "structural change", resulting in SIA Cargo's fleet being trimmed to seven Boeing 747-400 freighters, while a greater proportion of its revenue now comes from utilising bellyhold capacity from the SIA group's carriers.
“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,” says SIA chief executive Goh Choon Phong.
The Star Alliance carrier says that there will be no change to the operations of its dedicated freighters, while the cargo division will continue to manage the bellyhold space across the group.
SIA Cargo reported an operating profit of S$3 million ($2.15 million) for the fiscal year ended 31 March, reversing a loss from the previous year as cost savings offset an S$89 million slide in revenue.