Singapore Airlines Cargo
Encyclopedia
Singapore Airlines Cargo (abbreviated SIA Cargo) is a cargo airline
based in Singapore
. It is a subsidiary of Singapore Airlines
and was incorporated in 2001. SIA Cargo operates 11 freighters and manages the bellyhold of all Singapore Airlines aircraft. Through the freighters, SIA Cargo is able to operate to destinations that are not in the Singapore Airlines passenger network.
SIA Cargo's warehouse in Singapore, dubbed SIA Superhub 1, was opened in 1995. This warehouse is capable of handling up to 450,000 tonnes a year. In 2001, the SIA Superhub 2 was opened which added capacity by another 800,000 tonnes.
SIA Cargo is part of the WOW Alliance
, which also includes SAS Cargo Group
and, formerly, JAL Cargo
and Lufthansa Cargo
, as members. The airline owns a 25% stake in Great Wall Airlines
and a 16% stake in China Cargo Airlines
.
and SAS Cargo Group
to form WOW Alliance
on 1 October 2001.
Securerider, a premium product for secured shipments was launched on 7 January 2002, including services such as Swiftrider, Timerider and Coolrider targeting general shipments, heavy shipments, and temperature-sensitive cargo, respectively.
The airline garnered its first award as an all-cargo airline by winning the "Best Global Air Cargo Carrier" and "Best Air Cargo Carrier - Asia" at the Asian Freight Industry Awards (AFIA) in 2002, an award the parent company, Singapore Airlines, had already won eight times consecutively. It was named as the "Best Airfreight Carrier" in the inaugural Hong Kong-based Asia Logistics Awards in the same year.
New routes were introduced in the next few years as the airline began to take advantage of liberalised aviation agreements. A round-the-world service was introduced on 31 October 2001, flying from Singapore
to Hong Kong
, Dallas, Chicago
, Brussels
, Sharjah
, and back to Singapore
on Wednesdays, and on the Singapore
, Hong Kong
, Dallas, Chicago
, Brussels
, Mumbai
, Singapore
route on Fridays. It became the first third-country freighter airline to fly direct between China
and the United States
on 22 May 2003 when flights commenced from Singapore
to Xiamen
, Nanjing
and onwards to Chicago
. Return flights are operated from Chicago and Los Angeles
to Nanjing.
for price fixing
cartels in the air cargo industry. The ACCC accused Singapore Airlines Cargo of fixing the price of a fuel surcharge and a security surcharge that was applied to air cargo to and from Australia
. Singapore Airlines Cargo is the third airline to be the targeted for fuel surcharge price fixing.
In May 2010, Singapore Airlines was fined by the Fair Trade Commission (South Korea)
for conspiring
to introduce fuel surcharges for freight cargoes or continued to raise them over the past seven years. Singapore Airlines Cargo released a statement saying that they are "very disappointed" and "will study the decision closely with a serious view towards mounting an appeal" once they receive the Commission's full reasoning.
In November 2010, the European Commission
fined Singapore Airlines Cargo 74.8 million euros for its involvement in a global cartel that included ten other carriers. The Commission found that the carriers—including SIA, Japan Airlines, Qantas, Air Canada, Air France-KLM, and British Airways—had fixed fuel and security surcharges for more than six years. Singapore Airlines Cargo said it would likely appeal the ruling.
On 30 November 2010, Singapore Airlines Cargo pleaded guilty to a US$48 million fine imposed by the U.S. Department of Justice for its role in a conspiracy to fix cargo rates since February 2002, until at least 14 February 2006. Singapore Airlines Cargo's price fixing is in violation of the Sherman Act, which carries a maximum fine for corporations of US$100 million.
, Brussels
, Chicago
, ChongQing, Dallas/Fort Worth
, Nairobi
, Nanjing
, Sharjah
and Xiamen
. Sharjah and Amsterdam, and in a lesser extent Brussels are hubs
for the Middle Eastern and European regions respectively.
Additionally, as SIA Cargo manages the cargo holds of all Singapore Airlines passenger aircraft, the company offers cargo product services to all destinations on the Singapore Airlines passenger network
.
When incorporated in 2001, all nine Singapore Airlines
' Boeing 747
freighters were transferred to the new cargo start-up at market value, and henceforth, all new freighter purchases were to be made from the new company's books. All cargo-hold spaces in the Singapore Airlines' passenger planes are also managed by the new company.
SIA Cargo currently operates 11 Boeing 747-400Fs and 2 Boeing 747-400BCFs. The Boeing 747-400 freighter, with a 113-tonne payload and 8,060 km range, can carry more payloads further than any other commercial cargo aircraft, and feature typical capabilities such as front loading from the nose, temperature control and pressure-regulation systems. The Boeing 747-8 Freighter
has a higher payload of 154 tonnes but a shorter range of 8130 kilometres (5,051.8 mi). Despite the increase in payload offered by the Boeing 747-8 Freighter, SIA Cargo has announced that there are no plans to acquire them. According to the then-CEO Chew Choon Seng
of Singapore Airlines, “We are not convinced about the additional expenditure that would be needed to renew the freighter fleet with 747-8 freighters, when the tradeoffs in terms of operating efficiency is rather marginal, in our view. So we do not need that."
SIA Cargo leased a freighter to Air China Cargo in 2003. With the purchase of Great Wall Airlines in 2006, two freighters were leased to Great Wall Airlines in 2007. A third freighter was also leased to Great Wall Airlines in 2007.
Due to the financial crisis
in the late 2000s, there was a drop in global demand for freight. SIA Cargo parked a freighter at the Southern California Logistics Airport
in Victorville, California
from January 2009 until January 2010 to reduce capacity.
The average age of the freighter fleet was 10.9 years as of 2 November 2011.
In addition, the company manages the cargo holds of the passenger aircraft
operated by Singapore Airlines. These offer 9-23 tonnes of cargo capacity per plane depending on aircraft type.
Cargo airline
Cargo airlines are airlines dedicated to the transport of cargo. Some cargo airlines are divisions or subsidiaries of larger passenger airlines.-Logistics:...
based in Singapore
Singapore
Singapore , officially the Republic of Singapore, is a Southeast Asian city-state off the southern tip of the Malay Peninsula, north of the equator. An island country made up of 63 islands, it is separated from Malaysia by the Straits of Johor to its north and from Indonesia's Riau Islands by the...
. It is a subsidiary of Singapore Airlines
Singapore Airlines
Singapore Airlines Limited is the flag carrier airline of Singapore. Singapore Airlines operates a hub at Changi Airport and has a strong presence in the Southeast Asia, East Asia, South Asia, and "Kangaroo Route" markets...
and was incorporated in 2001. SIA Cargo operates 11 freighters and manages the bellyhold of all Singapore Airlines aircraft. Through the freighters, SIA Cargo is able to operate to destinations that are not in the Singapore Airlines passenger network.
SIA Cargo's warehouse in Singapore, dubbed SIA Superhub 1, was opened in 1995. This warehouse is capable of handling up to 450,000 tonnes a year. In 2001, the SIA Superhub 2 was opened which added capacity by another 800,000 tonnes.
SIA Cargo is part of the WOW Alliance
WOW Alliance
WOW Cargo Alliance is a global cargo alliance between SAS Cargo Group and Singapore Airlines Cargo.WOW is the world's second largest Cargo alliance consisting of only 2 Members and is currently competing with the only other Cargo alliance, SkyTeam Cargo....
, which also includes SAS Cargo Group
SAS Cargo Group
SAS Cargo Group Is SAS Scandinavian Airlines's cargo subsidiary and manages the cargo capacities of Scandinavian Airlines, Spanair and Blue1....
and, formerly, JAL Cargo
Japan Airlines
is an airline headquartered in Shinagawa, Tokyo, Japan. It is the flag carrier of Japan and its main hubs are Tokyo's Narita International Airport and Tokyo International Airport , as well as Nagoya's Chūbu Centrair International Airport and Osaka's Kansai International Airport...
and Lufthansa Cargo
Lufthansa Cargo
Lufthansa Cargo AG is a cargo airline from Germany, operating worldwide air freight and logistics services on behalf of Lufthansa, of which it is a wholly owned subsidiary. The company is headquartered in Building 451 of the Frankfurt Airport area in Frankfurt, the major hub of Lufthansa...
, as members. The airline owns a 25% stake in Great Wall Airlines
Great Wall Airlines
Great Wall Airlines Company Limited is a cargo airline based in Shanghai, People's Republic of China. It operates cargo services to Europe, USA and Asia...
and a 16% stake in China Cargo Airlines
China Cargo Airlines
China Cargo Airlines sometimes as abbreviated 中货航, is a cargo airline based in Shanghai, People's Republic of China. It is China's first all-cargo airline operating dedicated freight services using China Eastern Airlines route structure...
.
History
In July 1992, Singapore Airlines created a cargo division to complement its passsenger-carrying business. However, it was not until 1 July 2001, when Singapore Airlines Cargo was incorporated, taking over the air-freight operations of Singapore Airlines as a separate subsidiary. SIA Cargo leased the entire freighter fleet from Singapore Airlines, as well as taking over management of the cargo holds in all of Singapore Airlines' passenger aircraft. Within a few months, it entered an alliance with Lufthansa CargoLufthansa Cargo
Lufthansa Cargo AG is a cargo airline from Germany, operating worldwide air freight and logistics services on behalf of Lufthansa, of which it is a wholly owned subsidiary. The company is headquartered in Building 451 of the Frankfurt Airport area in Frankfurt, the major hub of Lufthansa...
and SAS Cargo Group
SAS Cargo Group
SAS Cargo Group Is SAS Scandinavian Airlines's cargo subsidiary and manages the cargo capacities of Scandinavian Airlines, Spanair and Blue1....
to form WOW Alliance
WOW Alliance
WOW Cargo Alliance is a global cargo alliance between SAS Cargo Group and Singapore Airlines Cargo.WOW is the world's second largest Cargo alliance consisting of only 2 Members and is currently competing with the only other Cargo alliance, SkyTeam Cargo....
on 1 October 2001.
The airline garnered its first award as an all-cargo airline by winning the "Best Global Air Cargo Carrier" and "Best Air Cargo Carrier - Asia" at the Asian Freight Industry Awards (AFIA) in 2002, an award the parent company, Singapore Airlines, had already won eight times consecutively. It was named as the "Best Airfreight Carrier" in the inaugural Hong Kong-based Asia Logistics Awards in the same year.
New routes were introduced in the next few years as the airline began to take advantage of liberalised aviation agreements. A round-the-world service was introduced on 31 October 2001, flying from Singapore
Singapore
Singapore , officially the Republic of Singapore, is a Southeast Asian city-state off the southern tip of the Malay Peninsula, north of the equator. An island country made up of 63 islands, it is separated from Malaysia by the Straits of Johor to its north and from Indonesia's Riau Islands by the...
to Hong Kong
Hong Kong
Hong Kong is one of two Special Administrative Regions of the People's Republic of China , the other being Macau. A city-state situated on China's south coast and enclosed by the Pearl River Delta and South China Sea, it is renowned for its expansive skyline and deep natural harbour...
, Dallas, Chicago
Chicago
Chicago is the largest city in the US state of Illinois. With nearly 2.7 million residents, it is the most populous city in the Midwestern United States and the third most populous in the US, after New York City and Los Angeles...
, Brussels
Brussels
Brussels , officially the Brussels Region or Brussels-Capital Region , is the capital of Belgium and the de facto capital of the European Union...
, Sharjah
Sharjah (city)
Sharjah is the third largest and most populous city in the United Arab Emirates. It is located along the southern coast of the Persian Gulf on the Arabian Peninsula.Sharjah is the seat of government of the emirate of Sharjah...
, and back to Singapore
Singapore
Singapore , officially the Republic of Singapore, is a Southeast Asian city-state off the southern tip of the Malay Peninsula, north of the equator. An island country made up of 63 islands, it is separated from Malaysia by the Straits of Johor to its north and from Indonesia's Riau Islands by the...
on Wednesdays, and on the Singapore
Singapore
Singapore , officially the Republic of Singapore, is a Southeast Asian city-state off the southern tip of the Malay Peninsula, north of the equator. An island country made up of 63 islands, it is separated from Malaysia by the Straits of Johor to its north and from Indonesia's Riau Islands by the...
, Hong Kong
Hong Kong
Hong Kong is one of two Special Administrative Regions of the People's Republic of China , the other being Macau. A city-state situated on China's south coast and enclosed by the Pearl River Delta and South China Sea, it is renowned for its expansive skyline and deep natural harbour...
, Dallas, Chicago
Chicago
Chicago is the largest city in the US state of Illinois. With nearly 2.7 million residents, it is the most populous city in the Midwestern United States and the third most populous in the US, after New York City and Los Angeles...
, Brussels
Brussels
Brussels , officially the Brussels Region or Brussels-Capital Region , is the capital of Belgium and the de facto capital of the European Union...
, Mumbai
Mumbai
Mumbai , formerly known as Bombay in English, is the capital of the Indian state of Maharashtra. It is the most populous city in India, and the fourth most populous city in the world, with a total metropolitan area population of approximately 20.5 million...
, Singapore
Singapore
Singapore , officially the Republic of Singapore, is a Southeast Asian city-state off the southern tip of the Malay Peninsula, north of the equator. An island country made up of 63 islands, it is separated from Malaysia by the Straits of Johor to its north and from Indonesia's Riau Islands by the...
route on Fridays. It became the first third-country freighter airline to fly direct between China
China
Chinese civilization may refer to:* China for more general discussion of the country.* Chinese culture* Greater China, the transnational community of ethnic Chinese.* History of China* Sinosphere, the area historically affected by Chinese culture...
and the United States
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
on 22 May 2003 when flights commenced from Singapore
Singapore
Singapore , officially the Republic of Singapore, is a Southeast Asian city-state off the southern tip of the Malay Peninsula, north of the equator. An island country made up of 63 islands, it is separated from Malaysia by the Straits of Johor to its north and from Indonesia's Riau Islands by the...
to Xiamen
Xiamen
Xiamen , also known as Amoy , is a major city on the southeast coast of the People's Republic of China. It is administered as a sub-provincial city of Fujian province with an area of and population of 3.53 million...
, Nanjing
Nanjing
' is the capital of Jiangsu province in China and has a prominent place in Chinese history and culture, having been the capital of China on several occasions...
and onwards to Chicago
Chicago
Chicago is the largest city in the US state of Illinois. With nearly 2.7 million residents, it is the most populous city in the Midwestern United States and the third most populous in the US, after New York City and Los Angeles...
. Return flights are operated from Chicago and Los Angeles
Los Ángeles
Los Ángeles is the capital of the province of Biobío, in the commune of the same name, in Region VIII , in the center-south of Chile. It is located between the Laja and Biobío rivers. The population is 123,445 inhabitants...
to Nanjing.
Price-fixing
In December 2008, Singapore Airlines Cargo was alleged by the Australian Competition and Consumer CommissionAustralian Competition and Consumer Commission
The Australian Competition and Consumer Commission is an independent authority of the Australia government. It was established in 1995 with the amalgamation of the Australian Trade Practices Commission and the Prices Surveillance Authority to administer the Trade Practices Act 1974...
for price fixing
Price fixing
Price fixing is an agreement between participants on the same side in a market to buy or sell a product, service, or commodity only at a fixed price, or maintain the market conditions such that the price is maintained at a given level by controlling supply and demand...
cartels in the air cargo industry. The ACCC accused Singapore Airlines Cargo of fixing the price of a fuel surcharge and a security surcharge that was applied to air cargo to and from Australia
Australia
Australia , officially the Commonwealth of Australia, is a country in the Southern Hemisphere comprising the mainland of the Australian continent, the island of Tasmania, and numerous smaller islands in the Indian and Pacific Oceans. It is the world's sixth-largest country by total area...
. Singapore Airlines Cargo is the third airline to be the targeted for fuel surcharge price fixing.
In May 2010, Singapore Airlines was fined by the Fair Trade Commission (South Korea)
Fair Trade Commission (South Korea)
The Korea Fair Trade Commission is South Korea's regulatory authority for economic competition. It was established in 1981 within the Economic Planning Board. The establishing law was the Monopoly Regulation and Fair Trade Act , Law No. 3320, December 31, 1980...
for conspiring
Conspiracy (crime)
In the criminal law, a conspiracy is an agreement between two or more persons to break the law at some time in the future, and, in some cases, with at least one overt act in furtherance of that agreement...
to introduce fuel surcharges for freight cargoes or continued to raise them over the past seven years. Singapore Airlines Cargo released a statement saying that they are "very disappointed" and "will study the decision closely with a serious view towards mounting an appeal" once they receive the Commission's full reasoning.
In November 2010, the European Commission
European Commission
The European Commission is the executive body of the European Union. The body is responsible for proposing legislation, implementing decisions, upholding the Union's treaties and the general day-to-day running of the Union....
fined Singapore Airlines Cargo 74.8 million euros for its involvement in a global cartel that included ten other carriers. The Commission found that the carriers—including SIA, Japan Airlines, Qantas, Air Canada, Air France-KLM, and British Airways—had fixed fuel and security surcharges for more than six years. Singapore Airlines Cargo said it would likely appeal the ruling.
On 30 November 2010, Singapore Airlines Cargo pleaded guilty to a US$48 million fine imposed by the U.S. Department of Justice for its role in a conspiracy to fix cargo rates since February 2002, until at least 14 February 2006. Singapore Airlines Cargo's price fixing is in violation of the Sherman Act, which carries a maximum fine for corporations of US$100 million.
Destinations
Singapore Airlines Cargo operates 600 dedicated weekly cargo flights to 72 destinations in 37 countries, of which 33 are served by both Singapore Airlines passenger aircraft and SIA Cargo aircraft. The nine destinations that have scheduled cargo service but do not receive service from Singapore Airlines passenger aircraft are: AtlantaHartsfield-Jackson Atlanta International Airport
Hartsfield–Jackson Atlanta International Airport , known locally as Atlanta Airport, Hartsfield Airport, and Hartsfield–Jackson, is located seven miles south of the central business district of Atlanta, Georgia, United States...
, Brussels
Brussels Airport
Brussels Airport is an international airport northeast of Brussels, Belgium. The airport is partially in Zaventem and partially in the Diegem area of Machelen, both located in the Flemish Region of Belgium.Brussels Airport currently consists of 54 contact gates, and a total of 109 gates...
, Chicago
O'Hare International Airport
Chicago O'Hare International Airport , also known as O'Hare Airport, O'Hare Field, Chicago Airport, Chicago International Airport, or simply O'Hare, is a major airport located in the northwestern-most corner of Chicago, Illinois, United States, northwest of the Chicago Loop...
, ChongQing, Dallas/Fort Worth
Dallas-Fort Worth International Airport
Dallas/Fort Worth International Airport is located between the cities of Dallas and Fort Worth, Texas, and is the busiest airport in the U.S. state of Texas...
, Nairobi
Jomo Kenyatta International Airport
-Charter airlines:-Cargo airlines:-Other facilities:The Kenya Civil Aviation Authority has its head office in the KAA Complex on the airport property. African Express Airways has its head office on the airport property...
, Nanjing
Nanjing Lukou International Airport
Nanjing Lukou International Airport is the main airport of Nanjing, the capital of China's Jiangsu province. The airport is located in the suburban Jiangning District, over 35 km to the south from Nanjing's downtown area....
, Sharjah
Sharjah International Airport
Sharjah International Airport is located in Sharjah, United Arab Emirates.Sharjah Airport is the second largest Middle East Airfreight Hub in terms of cargo tonnage, according to official 2009 statistics from Airports Council International...
and Xiamen
Xiamen Gaoqi International Airport
-Cargo airlines:-See also:*List of airports in the People's Republic of China*China's busiest airports by passenger traffic-External links:*...
. Sharjah and Amsterdam, and in a lesser extent Brussels are hubs
Airline hub
An airline hub is an airport that an airline uses as a transfer point to get passengers to their intended destination. It is part of a hub and spoke model, where travelers moving between airports not served by direct flights change planes en route to their destinations...
for the Middle Eastern and European regions respectively.
Additionally, as SIA Cargo manages the cargo holds of all Singapore Airlines passenger aircraft, the company offers cargo product services to all destinations on the Singapore Airlines passenger network
Singapore Airlines destinations
Singapore Airlines flies to 63 international destinations in 35 countries on six continents from its primary hub in Singapore.-List:...
.
Fleet
When incorporated in 2001, all nine Singapore Airlines
Singapore Airlines
Singapore Airlines Limited is the flag carrier airline of Singapore. Singapore Airlines operates a hub at Changi Airport and has a strong presence in the Southeast Asia, East Asia, South Asia, and "Kangaroo Route" markets...
' Boeing 747
Boeing 747
The Boeing 747 is a wide-body commercial airliner and cargo transport, often referred to by its original nickname, Jumbo Jet, or Queen of the Skies. It is among the world's most recognizable aircraft, and was the first wide-body ever produced...
freighters were transferred to the new cargo start-up at market value, and henceforth, all new freighter purchases were to be made from the new company's books. All cargo-hold spaces in the Singapore Airlines' passenger planes are also managed by the new company.
SIA Cargo currently operates 11 Boeing 747-400Fs and 2 Boeing 747-400BCFs. The Boeing 747-400 freighter, with a 113-tonne payload and 8,060 km range, can carry more payloads further than any other commercial cargo aircraft, and feature typical capabilities such as front loading from the nose, temperature control and pressure-regulation systems. The Boeing 747-8 Freighter
Boeing 747-8
The Boeing 747-8 is a wide-body jet airliner developed by Boeing Commercial Airplanes. Officially announced in 2005, the 747-8 is the fourth-generation Boeing 747 version, with lengthened fuselage, redesigned wings and improved efficiency...
has a higher payload of 154 tonnes but a shorter range of 8130 kilometres (5,051.8 mi). Despite the increase in payload offered by the Boeing 747-8 Freighter, SIA Cargo has announced that there are no plans to acquire them. According to the then-CEO Chew Choon Seng
Chew Choon Seng
Chew Choon Seng is the former Chief Executive Officer of Singapore Airlines .He is currently the Chairman of both Singapore Exchange and Singapore Tourism Board-Career:...
of Singapore Airlines, “We are not convinced about the additional expenditure that would be needed to renew the freighter fleet with 747-8 freighters, when the tradeoffs in terms of operating efficiency is rather marginal, in our view. So we do not need that."
SIA Cargo leased a freighter to Air China Cargo in 2003. With the purchase of Great Wall Airlines in 2006, two freighters were leased to Great Wall Airlines in 2007. A third freighter was also leased to Great Wall Airlines in 2007.
Due to the financial crisis
Late-2000s financial crisis
The late-2000s financial crisis is considered by many economists to be the worst financial crisis since the Great Depression of the 1930s...
in the late 2000s, there was a drop in global demand for freight. SIA Cargo parked a freighter at the Southern California Logistics Airport
Southern California Logistics Airport
Southern California Logistics Airport , also known as Victorville Airport, is a public airport located in the city of Victorville in San Bernardino County, California approximately north of San Bernardino...
in Victorville, California
Victorville, California
Victorville is a city located in the Victor Valley of southwestern San Bernardino County, California. According to the U.S. Census Bureau's 2010 census, the city had a population of 115,903, up from 64,030 at the 2000 census.-Geography and climate:...
from January 2009 until January 2010 to reduce capacity.
The average age of the freighter fleet was 10.9 years as of 2 November 2011.
In addition, the company manages the cargo holds of the passenger aircraft
Singapore Airlines fleet
The Singapore Airlines fleet features purely wide-body aircraft from five aircraft families: the Boeing 747, the Boeing 777, Airbus A380, Airbus A340, and the Airbus A330. In keeping with its policy of maintaining a young fleet, which stands at an average of 6 years 5 months as at 31 March 2008, it...
operated by Singapore Airlines. These offer 9-23 tonnes of cargo capacity per plane depending on aircraft type.
| Aircraft | Total | Orders | Cargo capacity |
|---|---|---|---|
| Boeing 747-400BCF | 2 | — | 110 tonnes |
| Boeing 747-400F | 11 | — | 110 tonnes |
| Total | 13 | 0 |