THE show, as they say, must go on - financial woes or not.

While its parent company is mired in a liquidity crisis in the US, the American International Assurance (AIA) office here is going ahead with a lavish corporate entertainment party to mark the SingTel Singapore Grand Prix next weekend.

The event was planned long before the crisis.

AIA bought premium tickets of about $300,000 for 50 clients who will be treated like VIPs at the Singapore Flyer from 26 to 28 Sep, during the Formula One race.

The package costs $5,500 per person, excluding GST. For such VIP tickets, the guests will enjoy free flow of premium champagne, three-day tickets to the race, access to events at the Flyer's Greek Theatre as well as F1 souvenirs like earplugs, caps, lanyards and binoculars.

Early this week, AIA's parent, American International Group, faced total collapse after losing more than US$18 billion ($25.8b) in the sub-prime crisis.

No party, just hosting

When asked about its F1 celebration, a spokesman for AIA said: 'We're not having a party. There's no party. We're just hosting our clients during the F1 race.'

She declined further comment, saying the company was 'busy with other things'.

The New Paper on Sunday understands that AIA is the Singapore Flyer's insurer.

A spokesman for the Singapore Flyer said it began selling its 600 premium suite passes in June but declined to reveal sales figures.

Its spokesman said: 'Sales have been encouraging but no other corporate clients have bought the suites on a scale like AIA.'

The premium suites at the Flyer's retail terminal building at Raffles Avenue are next to the racing action. Each suite, which will be converted into private dining rooms, can accommodate up to 20 guests. The suites will have live telecasts of the race via LCD monitors and guests will have unobstructed outdoor views.

To ensure that the capsules will not be overcrowded, each corporate client has specified times for rides.

Policy-holders had mixed reactions when told about AIA's F1 celebrations.

Miss Cecilia Tan, 32, a marketing executive, said: 'I think it's the wrong time to celebrate, especially when I feel AIA isn't doing enough to calm policy-holders. 'It may have taken out ads but not everyone may notice them.'

Madam Jasmine Wong, 42, a lecturer, felt there was nothing wrong with AIA pampering its clients.

She said: 'The Monetary Authority of Singapore has assured us that AIA is safe. The parent company may have lost money but the Singapore side is managed separately.'

Indeed, public relations expert Allan Feng feels that AIA's F1 celebrations would reflect positively on the insurer.

Mr Feng said: 'The celebrations would show the company is financially sound and that it continues to take good care of its customers.

'In fact, the financial crisis and the F1 race could be an opportunity for AIA to show that its Singapore office is unaffected.'

Other corporate F1 treats

AIA is not the only company to splurge on its clients during the Grand Prix.

US finance giant Citigroup is flying in a few hundred regional clients for the event.

Declining to reveal how much was spent, its spokesman said: 'We have bought tickets for grandstand seats and corporate suites.

'The US side has made some losses but the Singapore side still has high liquidity. Our customers are important and we want to take care of them by enabling them to experience the Singapore Grand Prix.'

Citi Singapore has written to customers to reassure them about its financial health.

Standard Chartered Bank is bringing in 200 clients and has booked four corporate suites and 50 grandstand seats.

Mr V Shankar, group head of origination and client coverage at StanChart, said: 'We're are planning on unique dinners and other opportunities for our guests to meet each other and build networks.'

OCBC Bank is flying in 300 foreign guests and housing them in the Paddock Club.

Its group corporate communications head, Ms Koh Ching Ching, said: 'Our customers will have VIP access to the pit area to get close to the racers and cars.'

Race organiser Singapore Grand Prix said banks bought about a quarter of the 180 corporate hospitality suites, including those in the exclusive Paddock Club.

A three-day pass costs $3,500 to $6,500, including food and a free flow of drinks.

This article was first published in The New Paper on September 21, 2008.