SIA

SIA: Recent alliance with Virginblue will allow SIA access to VBA's >30 Australian destinations, and a frequent flyer programme gives access to VBA's 2.4m members, although SIA remains barred from the long sought-after Transpac route.....

Under the alliance, SIA and VBA have agreed to establish a long-term agreement, covering
1) Code-sharing on each other’s route network;
2) Reciprocal frequent flyer
programme benefits and lounge access;
3) Coordination of flight schedules to provide passengers with seamless connections; 4) Joint sales and distribution activities, and SIA will now have access to an expanded network of more than 30 destinations in Aus…

Citi who has a Sell Rating with $13.90 TP however do not view move as material for SIA who faces a challenging premium sector hit by high jet fuel costs, stagnant yields, and weak load factors. Add that the Aus mkt is facing intense competition and uncertain demand recovery, with key players providing unexciting guidance and consolidating operations.