SIA instead of topping up govt reserves paid themselves handsomely like investment bankers

[oldchanggold]

As much as this is our national carrier, the govt should loan instead of giving them free money. If not this can become a moral hazard as they believe they can take on more risks without much repercussions

 

[VEF888]

They should save up for the rainy days instead of asking government for hand ups. The hand ups given to them is the biggest compare to others.

As much as this is our national carrier, the govt should loan instead of giving them free money. If not this can become a moral hazard as they believe they can take on more risks without much repercussions

that hand out is given to all sinkie companies in the aviation industry bah, not just SIA.

just like the hand out to the phv and taxi drivers. so the same can be said, if the phv and taxi drivers earning much more now, they should save up , not spend so much so that they won't be asking for hand out next time.

 

[VEF888]

Edit after I had replied.

Could be more than 12 years if profits drop, could be less if they spin off some assets. Nobody knows.

As of today, SIA has not redeemed part of the MCB and has not returned a good part of what went to their shares.

So the end result is still the same. People are entitled with good and valid reason to ask why and when the money will be returned.

you were asking?

https://www.singaporeair.com/saar5/pdf/Investor-Relations/Financial-Results/News-Release/nr-q4fy2324.pdf

On 15 May 2024, the Company announced its intention to redeem all remaining MCBs that were issued in June 2021. The accreted principal amount payable, being 112.616% of the principal amount of the MCBs, will be $1,744.6 million. The redemption amount will be paid to eligible bondholders on 24 June 2024.

 

[rstopel]

I agree with you! Times were tough for them but they must always give priority to those that provided large sums to bail out the airline during these tough times

that's what they are doing Einstein. all the money given to sia is from shareholders through convertable bonds and rights issue. now shareholders (incl temasek) get their rewards in the firm of dividends




Read HWZ Forum Rules!

 

[Coffeelix]

Heavy losses in our reserves de to SIA planes sitting idly in nevada

And pilots sitting at home shake legs collect hdouts

Nw they forgot about the free cash donation they are greedy

I don’t understand Y our govt can’t stop them paying themselves with big bonuses gao gao?

Isn’t this “corruption” or “raided our reserves” unjustifiably ?

 

[Cmonster]

Edit after I had replied.

Could be more than 12 years if profits drop, could be less if they spin off some assets. Nobody knows.

As of today, SIA has not redeemed part of the MCB and has not returned a good part of what went to their shares.

So the end result is still the same. People are entitled with good and valid reason to ask why and when the money will be returned.

You are asking from the perspective of alternative investments

And answering from your perspective, the government made the right investment decision in terms of the returns they enjoying now, and the strategic value of making sure SIA survived

The other people are making populist comments, saying that the Singapore government "socialized losses and privatised profits", and gave free money to SIA. Which is absolute nonsense and shows uneducated minds

It is not the same questions

 

[waterdestiny]

Missed the boat liao, become salty and jelly

 

[KYZT2021]

maybe should have bond between Gov and SIA

 

[Cmonster]

As much as this is our national carrier, the govt should loan instead of giving them free money. If not this can become a moral hazard as they believe they can take on more risks without much repercussions

Learn to read. The whole thread people already explained to you there was no free money given

It was given as a loan like you suggested. It is called a MCB

 

[parchiao]

you were asking?

https://www.singaporeair.com/saar5/pdf/Investor-Relations/Financial-Results/News-Release/nr-q4fy2324.pdf

On 15 May 2024, the Company announced its intention to redeem all remaining MCBs that were issued in June 2021. The accreted principal amount payable, being 112.616% of the principal amount of the MCBs, will be $1,744.6 million. The redemption amount will be paid to eligible bondholders on 24 June 2024.

And what date is today?

 

[VEF888]

And what date is today?

yeah, till 24 June 2024, your doomsday prophecy for SIA going bankrupt unlikely to happen? no?

Could be more than 12 years if profits drop, could be less if they spin off some assets. Nobody knows.

As of today, SIA has not redeemed part of the MCB and has not returned a good part of what went to their shares.

 

[parchiao]

yeah, till 24 June 2024, your doomsday prophecy for SIA going bankrupt unlikely to happen? no?

Where did I say SIA going bankrupt?

SIA could not even go bankrupt during Covid.

And we all know why.

 

[oldchanggold]

Some people here very defensive. Maybe SIA staff?

 

[VEF888]

Where did I say SIA going bankrupt?

SIA could not even go bankrupt during Covid.

And we all know why.

worst case scenario of what could have happened in 12 years bah.

and the believers duely rewarded? no?

 

[VEF888]

Some people here very defensive. Maybe SIA staff?

nope, just shareholders who benefitted bah.

 

[Teyemittisi]

that's what they are doing Einstein. all the money given to sia is from shareholders through convertable bonds and rights issue. now shareholders (incl temasek) get their rewards in the firm of dividends




Read HWZ Forum Rules!

The key point here is priority mr newton. Every paid out bonus expense hits the p&l and b/s, eats into shareholders” equity.. the same set of people of willingly take risks to standby the company .. and I’m not just referring to the bonds..

 

[parchiao]

You are asking from the perspective of alternative investments

And answering from your perspective, the government made the right investment decision in terms of the returns they enjoying now, and the strategic value of making sure SIA survived

The other people are making populist comments, saying that the Singapore government "socialized losses and privatised profits", and gave free money to SIA. Which is absolute nonsense and shows uneducated minds

It is not the same questions

Alternative investments mean something else in Finance.

Bailing out SIA was a forgone conclusion. I am also not of the opinion that it becomes bankrupt.

However, I am of the opinion that a lot more money needs to be returned to Temasek as soon as possible.

It is not clear to me who gets more bonuses this year and how much these eligible employees are paid in the first place. The next financial year statements will reveal more.

As for socializing losses and privatizing profits, it is absolutely accurate. Investopedia definition is as follows.

"Privatizing profits and socializing losses is the consequence of allowing shareholders to benefit from company earnings while making society responsible for their losses.

Loss socialization generally refers to some type of government intervention either through bailouts or subsidies."

https://www.investopedia.com/terms/...allowing,either through bailouts or subsidies.

 

[Justanewbie]

In the end now on hindsight it proved to be a good move as the govt will receive all money back when the MCB is redeemed and we still have our national carrier.

 

[Cmonster]

Alternative investments mean something else in Finance.

Bailing out SIA was a forgone conclusion. I am also not of the opinion that it becomes bankrupt.

However, I am of the opinion that a lot more money needs to be returned to Temasek as soon as possible.

It is not clear to me who gets more bonuses this year and how much these eligible employees are paid in the first place. The next financial year statements will reveal more.

As for socializing losses and privatizing profits, it is absolutely accurate. Investopedia definition is as follows.

"Privatizing profits and socializing losses is the consequence of allowing shareholders to benefit from company earnings while making society responsible for their losses.

Loss socialization generally refers to some type of government intervention either through bailouts or subsidies."

https://www.investopedia.com/terms/p/privatizing-profits-and-socializing-losses.asp#:~:text=Privatizing profits and socializing losses is the consequence of allowing,either through bailouts or subsidies.

Society was not responsible for their loss. Because There was no bailout

I have no comment about bonus because i am only interested in decisions made in 2020

Please go debate someone else in this thread about this

 

[Justrade]

that hand out is given to all sinkie companies in the aviation industry bah, not just SIA.

just like the hand out to the phv and taxi drivers. so the same can be said, if the phv and taxi drivers earning much more now, they should save up , not spend so much so that they won't be asking for hand out next time.

It's the other way round. They gave hand out to others so that they can gave SIA. Otherwise they cannot justify for SIA alone.