Singapore Airlines Ltd.'s (C6L.SG) chief executive Sunday said the business environment remains challenging due to the slowing global economy and conditions in the crude oil market.
"The current environment is challenging. Our attention is right now preoccupied by the business challenges we face," Chew Choon Seng told Dow Jones Newswires.
Chew is here to attend the three-day International Air Transport Association's 65th annual general meeting.
Singapore Airlines is facing a difficult operating environment as a slowing global economy crimps demand for business and leisure travel. For the fourth quarter ended March 31, the airline, which is majority-owned by Temasek Holdings, posted a 92% drop in net profit to S$42 million due to fuel-hedging losses and a drop in demand for air travel.
The airline also warned that the uncertainties from the swine flu will have an impact on its business.
"The environment is very challenging because of the (global) crude oil environment and the depressed conditions we are all facing," Chew said.
On the airline's plans in China, Chew said that Singapore Air is open to opportunities in the region, but declined to comment on whether it is still interested in China Eastern Airlines Corp. (CEA).
Recently, China Eastern's board secretary, Luo Zhuping, said that the Chinese government hopes that Singapore Air will invest in China Eastern after the Singaporean airline allowed its offer to lapse last year.
Chew had said earlier that talks with CEA haven't been revived, but that his airline was interested in China's airline sector.
"In the longer term, China, India and so on represent important economies in which we hope to be able to participate in. But it very much depends on the regulatory environment, what the governments in those countries decide upon," Chew said Sunday.
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