NCA and SIA ink cargo pact

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Wednesday, 14 February 2018

Nippon Cargo Airlines (NCA) and Singapore Airlines Cargo (SIA Cargo) have signed a Memorandum of Understanding (MOU) to develop a strategic partnership. The proposed strategic partnership will build on existing block space arrangements between the two airlines that have been progressively expanded over the past five years.

As a first phase, NCA and SIA Cargo have agreed to introduce cargo codeshare services on routes between Tokyo and Singapore from 01 April 2018, subject to regulatory approval. 

Meanwhile, operating profit in the third quarter of the 2017-18 financial year for SIA Cargo rose by SGD35 million to SGD88 million in the quarter (+66.0 per cent). Revenue improved SGD88 million as freight carriage growth of 4.4 per cent was further supported by a 12.1 per cent improvement in cargo yield. Expenditure was up SGD53 million, partly due to a foreign exchange loss against a gain last year, higher staff costs, and higher depreciation from engine overhauls. Cargo load factor rose by 2.4 percentage points to 68.3 per cent.