Singapore Airlines Group on Tuesday reported its highest-ever net profit and outlined various strategic initiatives, including the proposed merger of Vistara with Air India, to boost the Singaporean carrier’s presence in the Indian market. Vistara is a joint venture between Singapore Airlines and the Tata Group, which holds a 51 percent stake. The process of merging Vistara with Air India is underway. On Tuesday, Singapore Airlines (SIA) Group posted a record net profit of 2,157 million Singapore dollars for FY2022-23. It had posted a net loss of S$962 million in the year-ago period.
“This was primarily driven by improved operating performance (+SGD 3,302 million) and lower net finance charges (+SGD 338 million), and partially offset by tax credits versus tax expense last year (approximately SGD 615 million) was,” the airline. the group said in a release.
Despite the COVID pandemic, the group said it remains committed to its long-term strategy of procuring and operating new generation aircraft. Among other efforts, the group retrofitted its Airbus A380 and Boeing 737-8 aircraft and placed an order for all-new Airbus A350F freighters.
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To prepare for the future, several strategic initiatives were undertaken, including the continuous expansion of its network through deeper collaboration with like-minded airlines, Air India and Air India to strengthen SIA’s presence in the fast-growing Indian aviation market. Vistara’s proposed merger. as well as Schutt’s decision to lease nine Embraer E190-E2 aircraft and expand its footprint to secondary points in the region.
India is the world’s third largest as well as one of the fastest growing aviation markets. On November 29 last year, the Tata group announced the merger of Vistara with Air India under a deal in which Singapore Airlines would also acquire a 25.1 per cent stake in Air India.
Tata Group has four airlines – Air India, Air India Express, Vistara and AIX Connect. AIX Connect, formerly known as AirAsia India, is set to merge with Air India Express. According to SIA Group, high cost-of-living inflation along with geopolitical and macroeconomic uncertainties could pose challenges for the airline industry in the coming months.
“Even though fuel prices have eased in recent months, they remain elevated. With more capacity being injected on international routes, competition is expected to increase, the Group will be closely monitoring developments, and Will be agile and nimble in its response,” it added.