SQ selling triplers 777

[moa999]

From a comment on a threat on FT about CX found this article

TRANSAERO

Very surprised that SQ is selling 777s, let alone ones with low hours.

 

[dajop]

Very surprised that SQ is selling 777s, let alone ones with low hours.

That is SQ's business model churn them over before requiring significant maintenance, and IIRC Singapore tax laws allow faster depreciation of aircraft than in many places. And I it does depend on what the definition of " have only seen limited service with Singapore Airlines" really is.

 

[NM]

SQ has always had a policy of turning its aircraft over quickly. This is possible for them due to accelerated depreciation laws applicable to Singapore Airlines under Singapore tax law. They often move them on when major service work is due. There are some people who believe SQ's maintenance program is structured around the fact that they will not own the aircraft for a long time period. Whatever the driver behind their fleet policy, they certainly do not hold onto their aircraft as long as operators who do not have access to beneficial accelerated depreciation rules, allowing them to boast one of the youngest fleets of the major international airlines.

 

[moa999]

Presumably 3K/VF (Jetstar Asia / ValuAir) and TR (Tiger Singapore) benefit from the same accelerated depreciation.

Will be interesting to see how that works out in years to come.
3K/VF/TR get the fresh jets and JQ/TT the crumbs ??

 

[straitman]

Presumably 3K/VF (Jetstar Asia / ValuAir) and TR (Tiger Singaore) benefit from the same accelerated depreciation.

Will be interesting to see how that works out in years to come.
3K/VF/TR get the fresh jets and JQ/TT the crumbs ??

SQ certainly use this to advantage. It would be interesting to be able to look into the future and see the outcomes ahead of time.

 

[NM]

Presumably 3K/VF (Jetstar Asia / ValuAir) and TR (Tiger Singapore) benefit from the same accelerated depreciation.

Indeed that would seem a reasonable assumption.

 

[ajw373]

From a comment on a threat on FT about CX found this article

TRANSAERO

Very surprised that SQ is selling 777s, let alone ones with low hours.

No where does it say that SQ is selling them. If you look at the article it says that Transaero is going to lease them, but doesn't say who from. SIA does have a leasing arm, Ansett leased their 743's and 744's off them.

 

[JetLagged]

.... as long as operators who do not have access to beneficial accelerated depreciation rules,

Being an enterprise with direct government support and backing surely doesn't hurt as well!

 

[oz_mark]

Given that SQ have been acquiring A330's to replace the 777's on regional routes over the last year, it shouldn't be a surprise to see the 777's exit the fleet.

 

[straitman]

An interesting sideline to this is that SQ marched in and sacked most/all of their expat pilots about 6 months ago so there are certainly a few changes in the wind.

 

[markis10]

Given that SQ have been acquiring A330's to replace the 777's on regional routes over the last year, it shouldn't be a surprise to see the 777's exit the fleet.

The A330s were leased as a stop gap to cover the 787 delays from AWAS, some of the 777's are 13 years old, I agree its not a surprise to see some of them go, they have a lot!

 

[straitman]

The A330s were leased as a stop gap to cover the 787 delays from AWAS, some of the 777's are 13 years old, I agree its not a surprise to see some of them go, they have a lot!

.... and 13 years is exceptionally old for SQ aircraft.