SIA

SIA: Announced its largest ever aircraft order and one of the largest orders for new aircraft in history, with 30 A50-900 (plus 20 options) and 30 B787-10 aeroplanes worth US$17b at list price. No firm details in terms of delivery date, programme cost, seat configuration or exchange undertakings have been made available, but CS note that house would be surprised if this order saw net seat growth of >4% across the delivery period. While yet a long way off, these aircraft could support SQ’s last remaining vestiges of competitive advantage in the premium passenger business, but will not move the needle during the forecast period. CS has a NEUTRAL rating and $12.60 TP.