ABSTRACT
Singapore Airlines had two classes of ordinary shares — SIA200 and Foreign — each with a separate stock market listing. In 1999, it decided to merge two and issue one non-tradable special share to the Ministry of Finance. The airline’s balance sheet shows the nominal value of the shares issued, together with any premiums paid on subscription. Companies may issue special classes of shares either to thwart a hostile take-over or restrict the ownership to nationals of home country. Smaller or start-up airlines with no access to more conventional sources of capital often turn to venture capital companies. Airlines are normally prevented from acquiring a majority of airlines in other countries because of Air Services Agreement restrictions on foreign ownership. An airline taking a majority stake in another airline in its own country is much easier, and has usually taken the form of a financial link with a commuter or feeder airline.
