SINGAPORE: Singapore Airlines Raises S$10 billion Of Liquidity

Singapore Airlines (SIA) announced that the Company has raised S$10 billion or 6,3 billion euro of liquidity through its recent Rights Issue, as well as a mix of secured and unsecured credit facilities.

This puts SIA on a steady footing as it tackles the challenges posed by the global Covid-19 outbreak.

SIA secured S$8.8 billion in liquidity through the successful completion of the rights issue on 5 June 2020.

And more S$900 million was raised through long term loans secured on some of SIA’s Airbus A350-900 and Boeing 787-10 aircraft.

Singapore Airlines has also arranged new committed lines of credit and a short term unsecured loan with several banks, which provide further fresh liquidity amounting to more than S$500 million.

Separately, all existing committed lines of credit that were due to mature during the course of 2020 have been renewed until 2021 or later, thus ensuring continued access to more than S$1.7 billion in liquidity.

During this period of high uncertainty, SIA will continue to explore additional means to shore up liquidity as necessary.

For the period up to July 2021, the Company also retains the option to raise up to a further S$6.2 billion in additional mandatory convertible bonds, which will provide additional liquidity if necessary.

Singapore Airlines Chief Executive Goh Choon Phong said. “We are grateful for the strong support of our shareholders for our successful rights issue, which has secured the company’s future amid an unprecedented global health and economic crisis. We are also grateful to our relationship banks for their support in extending additional secured and unsecured loans, as well as committed lines of credit. SIA will remain steadfast and agile during this period of great uncertainty, and continue to act nimbly in responding to the evolving market conditions.”

Singapore Airlines has become the first passenger flight to return to New Zealand after lockdown.

Flight SQ285 touched down in Auckland this afternoon as the airline resumes services in Auckland and Christchurch.

Auckland Airport's general manager for aeronautical commercial Scott Tasker says it's a positive step.

We're really pleased today to have Singapore Airlines restart their services that are carrying passengers.

They're reinstating the ability of people to fly to and from New Zealand via Singapore.

Mr Tasker says it's significant New Zealanders can now return home on commercial flights from a major international hub like Changi Airport and not have to rely on repatriation flights.

However, the return of international flight doesn't mean the immediate return of tourists.

At this stage, anyone coming into New Zealand must be a New Zealand resident or citizen and still require a 14 day quarantine."

Before the Covid-19 pandemic, Auckland Airport averaged more than 2000 international flights a month, operated by more than 20 airlines.

In the month of June we expected to have about 101 flights operated by 10 airlines, so the volume of flights have reduced significantly, says Mr Tasker.

Singapore Airlines (SIA) is the flag carrier airline of Singapore with its hub at Singapore Changi Airport. The airline is notable for using the Singapore Girl as its central figure in corporate branding.

It has been ranked as the world's best airline by Skytrax four times and topped Travel & Leisure's best airline rankings for more than 20 years.

Singapore Airlines includes many airline-related subsidiaries. SIA Engineering Company handles maintenance, repair, and overhaul (MRO) business across nine countries, with a portfolio of 27 joint ventures, including with Boeing and Rolls-Royce.

Singapore Airlines Cargo operates SIA's freighter fleet and manages the cargo-hold capacity in SIA's passenger aircraft. It has two subsidiaries: SilkAir operates regional flights to secondary cities, while Scoot operates as a low-cost carrier.

Singapore Airlines was the launch customer for the Airbus A380 - the world's largest passenger aircraft - as well as the Boeing 787-10 and the ultra-long-range version of the Airbus A350-900.

It ranks amongst the top 15 carriers worldwide in terms of revenue passenger kilometers, and is ranked tenth in the world for international passengers carried.[6] Singapore Airlines was voted as the Skytrax World's Best Airline Cabin Crew 2019.

The airline also won the second and fourth positions as the World's Best Airlines and World's Cleanest Airlines respectively for 2019.

NEW ZEALAND: $130m Fund To Pay For Tourism Infrastructure Sought By Tourism Officials

A bed tax and increased border levies are proposed to help raise $130 million for tourism infrastructure.

A report released today calls for a 2 per cent national levy on all accommodation including campervans and Airbnb, and a $5 increase in the border levy (currently $20).

It comes just days after Auckland mayor Phil Goff suggested a visitor tax to raise up to $30 million to pay for city marketing and major events.

The report was commissioned by the chief executives of Air New Zealand, Christchurch and Auckland airports and Tourism Holdings to promote debate on funding options.

It estimated $100m needed to be spent immediately across 20 local authorities where the rise in visitor numbers had outpaced their ability to provide infrastructure such as roads, carparks, toilets and environmental protection.

The proposed levies would raise $65m a year from the industry with matching funds from the government taking the total to $130m a year.

The report said the government could cover its contribution from an estimated $2.8b annual in GST paid by tourists, growth in returns from tourism-related businesses such as this year's $145m special dividend from Air New Zealand, and taxes paid by the tourism industry.

It also suggested an independent Crown entity be formed to allocate the money.

The study commissioned by the four industry leaders focuses on infrastructure which is used by both locals and tourists, and is primarily owned by local or central government.

According to the study 33 local councils did not increase infrastructure spending in line with growth in visitor stays, and 13 council had actually decreased infrastructure spending despite visitor growth.

Local Government New Zealand president Lawrence Yule said his organisation had backed the idea of a tourist levy for some time but it was important the money was spent where it was really needed.

"Which is not only on toilets, freedom camping facilities and car parks, but also on major infrastructure like wastewater, which are some of the most costly pieces of work small communities are faced with.

"Making sure the ongoing maintenance and operation of facilities is funded is also critical - it's not just about building it."

Hospitality New Zealand general manager accommodation Rachael Shadbolt welcomed further discussion on national visitor levies.

"We're heartened that they've cast the net wider into campervans and non commercial accommodation providers. I still think this conversation needs to go wider than just accommodation. It needs to be a discussion about how all businesses who benefit from tourism contribute towards this fund."

Wellington airport chief executive Steve Sanderson supported more infrastructure investment but opposed a border levy on all travellers including New Zealanders.

"It needs to undergo a rigorous and robust analysis before proceeding."

Tourism Industry Aotearoa (TIA) chief executive Chris Roberts said a national solution was preferable to a range of local and regional approaches and it was a matter of sharing the cost fairly.

"There are opportunities for greater user pays and better use of council balance sheets. But there is also a valid argument that the industry and its customers should contribute to ensuring tourism can sustainably grow,"

TIA is doing its own assessment of tourism infrastructure priorities and expected to release the results early next year.

NEW ZEALAND: $130m Fund To Pay For Tourism Infrastructure Sought By Tourism Officials

A bed tax and increased border levies are proposed to help raise $130 million for tourism infrastructure.

A report released today calls for a 2 per cent national levy on all accommodation including campervans and Airbnb, and a $5 increase in the border levy (currently $20).

It comes just days after Auckland mayor Phil Goff suggested a visitor tax to raise up to $30 million to pay for city marketing and major events.

The report was commissioned by the chief executives of Air New Zealand, Christchurch and Auckland airports and Tourism Holdings to promote debate on funding options.

It estimated $100m needed to be spent immediately across 20 local authorities where the rise in visitor numbers had outpaced their ability to provide infrastructure such as roads, carparks, toilets and environmental protection.

The proposed levies would raise $65m a year from the industry with matching funds from the government taking the total to $130m a year.

The report said the government could cover its contribution from an estimated $2.8b annual in GST paid by tourists, growth in returns from tourism-related businesses such as this year's $145m special dividend from Air New Zealand, and taxes paid by the tourism industry.

It also suggested an independent Crown entity be formed to allocate the money.

The study commissioned by the four industry leaders focuses on infrastructure which is used by both locals and tourists, and is primarily owned by local or central government.

According to the study 33 local councils did not increase infrastructure spending in line with growth in visitor stays, and 13 council had actually decreased infrastructure spending despite visitor growth.

Local Government New Zealand president Lawrence Yule said his organisation had backed the idea of a tourist levy for some time but it was important the money was spent where it was really needed.

"Which is not only on toilets, freedom camping facilities and car parks, but also on major infrastructure like wastewater, which are some of the most costly pieces of work small communities are faced with.

"Making sure the ongoing maintenance and operation of facilities is funded is also critical - it's not just about building it."

Hospitality New Zealand general manager accommodation Rachael Shadbolt welcomed further discussion on national visitor levies.

"We're heartened that they've cast the net wider into campervans and non commercial accommodation providers. I still think this conversation needs to go wider than just accommodation. It needs to be a discussion about how all businesses who benefit from tourism contribute towards this fund."

Wellington airport chief executive Steve Sanderson supported more infrastructure investment but opposed a border levy on all travellers including New Zealanders.

"It needs to undergo a rigorous and robust analysis before proceeding."

Tourism Industry Aotearoa (TIA) chief executive Chris Roberts said a national solution was preferable to a range of local and regional approaches and it was a matter of sharing the cost fairly.

"There are opportunities for greater user pays and better use of council balance sheets. But there is also a valid argument that the industry and its customers should contribute to ensuring tourism can sustainably grow,"

TIA is doing its own assessment of tourism infrastructure priorities and expected to release the results early next year.

NEW ZEALAND: Ritz-Carlton Considering Entering New Zealand.

Ritz-Carlton is considering going to New Zealand.

Ritz-Carlton is one of the world's biggest hotel names long tipped for Auckland, along with Hyatt, which last year announced it would return to New Zealand in a new building along Auckland's waterfront.

As for Ritz-Carlton, "we continuously look for opportunities to expand The Ritz-Carlton presence in New Zealand," a Singaporean spokeswoman Michele Lv said.

The Ritz-Carlton has been rumoured to be lined up for a proposed skyscraper planned by Chinese businessman Furu Ding's company, NDG on a central car park site bounded by Elliott St.

The project has initial resource consent but is rumoured to have been delayed.

Dean Humphries, Collier's hotel specialist, said many hotel brands had been keeping an eye on New Zealand for years, including Ritz-Carlton, and some were now moving in.

Accor, Marriott-Starwood and Hilton were all in expansion mode, with Hilton's DoubleTree brand taking over Christchurch's Chateau on the Park recently and IHG announcing a new Holiday Inn in Queenstown and an "express" hotel in Christchurch.

Also looking on were the Asian hotel brands such as Shangri-La, which was not yet here. Singaporean chain Naumi Hospitality was opening its first hotel at Auckland Airport

These big names brought their loyalty programmes with them and a level of luxury which was stirring up existing players and prompting a wave of refurbishments, Humphries said.

"At the end of the day they do normally attract a different clientele than say a mid-market hotel, but of course it does mean that all the five star hotels are going to have to lift their game."

New Zealand is suddenly on the radar of international retailers and hotel operators because of the high tourism numbers which are lifting hotel room revenues and spending.

Arrivals from China have quadrupled in the last decade, and Chinese tourists spend more than other nationalities on products to take home.

NEW ZEALAND: Welcome From The Chief Executive, Auckland International Airport

Auckland Airport is delighted to host the 2016 International Travel Summit.

Tourism is critical to New Zealand’s future, providing employment for approximately 300,000 people throughout the country. Its benefits are widespread, delivering $81 million per day for our national economy, our cities and our provinces.

The tourism growth that arises from improved air connectivity provides both opportunities and challenges. As an industry, we must ensure that we understand our new and emerging markets and that we have the right products available or in development.

We hope this summit goes some way to achieving just that, providing you with practical and useful examples that help you develop your own business to make the most of the tourism growth. The summit will be an opportunity to learn from the best, to clear up some myths, and to share your experiences with others in the industry.

Thank you for your attendance.

Adrian Littlewood
Chief Executive

NEW ZEALAND: Auckland Airport To Invest $100,000 To Help Tourism Operators

Auckland Airport announces $100,000 tourism industry development grants

Auckland Airport has announced that it will invest another $100,000 this year to help tourism operators develop seasonally-themed regional tourism experiences.

The two grants of $50,000 each will be awarded to businesses that demonstrate innovation in growing seasonal regional tourism experiences for visitors from India, Australia, China or the United States.

Norris Carter, Auckland Airport’s general manager - aeronautical commercial, says the funding grants will help to further grow tourism by creating even more reasons for our international tourists to visit regional New Zealand.

“We want to inspire regional tourism businesses to come together and think innovatively about creating new experiences to attract Free Independent Travellers, or FITs”.

“Last year we awarded a total of $100,000 – four grants of $25,000 each – to four tourism operators. The grants supported the development of new food and wine, adventure and cultural experiences for tourists. The experiences were: food and wine tours in Auckland and Marlborough by ZeaYou Travel; a Ra Karakia sunrise ceremony in Auckland by Ngāti Whātua Ōrākei; new summer and winter itineraries in Auckland and Northland by Explore Group; and Chinese social media programmes for seasonal itineraries by YHA New Zealand”.

“Each of the four new tourism products supported by our 2015 tourism development grants has further enhanced New Zealand’s appeal to international visitors. As a result, Auckland Airport is delighted to provide another $100,000 this year to help the tourism industry develop,” says Mr Carter.

Auckland Airport announced the $100,000 funding for the 2016 tourism development grants at its International Travel Summit. The Summit is an annual gathering of approximately 200 of the country’s tourism operators, travel buyers and media to share the latest industry information on growing travel markets, tourist perceptions and insights, and how to tailor tourism experiences and product development.

AUSTRALIA: Baggage Handlers Nabbed Throwing Surfboards

Video has emerged of surfers watching in shock as baggage handlers biff their surfboards onto the tarmac at Auckland Airport.

The footage, filmed from the airport's international terminal and posted to Facebook, shows three baggage handlers in yellow vests unloading luggage and surfboards from a Qantas jet, unaware they are being filmed.

The surfboard owners watch in horror as the handlers drop four boards onto the tarmac despite them being labelled with fragile tags.

"They just biffed our boards on the ground," said one of the board owners.

"If there's any damage we can fully wreck these guys," another can be heard saying.

NEW ZEALAND: New Plymouth-Bound Passenger On Wrong Plane, Lands In Tauranga

Two Hong Kong brothers have been reunited after one of them got lost in transit in New Zealand.

Last week, after spending 24 hours in the air, a sleepy Roger Ting accidentally got on the wrong connecting flight in Auckland and ended up in 310 kilometres away from his destination.

The 17-year-old New Plymouth Boys' High School student was on his way back from Hong Kong with his younger brother Andrew.

Once in New Zealand he was meant to fly from Auckland to New Plymouth, but mistakenly boarded the Air New Zealand flight to Tauranga.

"I was supposed to go to gate 47, but I went to 46," Roger said.

"I went to Tauranga. I didn't have any clue what to do when I got there and I didn't know where my brother was."

His brother Andrew was still at the Auckland Airport, after dashing off the New Plymouth bound plane when he noticed his brother was missing.

"I didn't know where he was," Andrew said.

"He was missing and I was shocked when I heard he was in Tauranga."

Although both boys now find the experience mildly amusing, it was no laughing matter at the time.

Roger, who is spending his third year in New Zealand, said he did not know how he was allowed to gain access to the wrong flight, but the Air New Zealand staff were extremely friendly afterwards.

"After I went to the wrong place, they helped me a lot. They paid for me to stay there, and for the ticket back to Auckland and from Auckland back to New Plymouth as well."

Andrew, who wants to be a pilot, wasn't quite so lucky.

"Air New Zealand told me I had to pay for my own new ticket to New Plymouth because I hopped off the plane by myself.

"But then, eventually, they paid for me."

The brother's New Zealand guardian Patricia Rowe said the boys' family was distraught when they heard Roger had gone missing and upset to hear Andrew had been left at the airport alone.

"They were so relieved when Roger turned up in Tauranga," she said.

"And when Andrew was safe. They are two lovely young men and Andrew wanted to make sure his brother was OK.

"But we still don't know how Roger managed to get on the wrong plane."

On Monday a spokesperson for Air New Zealand said it was unlikely anyone would be available to respond to questions about the incident until Tuesday.