SIA

SIA: Following 3QFY14 post-results briefing, OCBC takeaways include: 1) guides that management is optimistic on TAT SIA JV in India being approved by authorities, but expects delay to its last guidance of mid-2014. 2) Uncertainty as to whether the requirement airlines have to have a 20 aircraft fleet and five years of domestic operations before being allowed to fly internationally will be lifted. The latter will affect the range of services provided by the JV. 3) the four grounded freighters in SIA Cargo helped lower unit operating costs by 6.87% y/y and are still looking for buyers CS’ takeaways as follows: 1) SQ has established a special unit within its financial division to focus on extracting more revenue from existing customers or improving return on investment, and reviewing unsuccessful attempts to be all things to everyone. 2) However, this has yet to bear fruit. 3) More clarity on capacity growth, currency exposure and pending change in fuel burn has negligibly upgraded estimates for next 2 years, but TP remains unchanged at $10.80 (Neutral)