Singapore airlines: post-results briefing lasted beyond the typical-one hour, as management presented the merits of the Tiger-offer and discussed the present dynamics of the current business.
Briefing takeways include: 1) That SIA mainline passenger business was hit by European weakness, not surprising amid the weak business environment this year.
In contrast, it was SilkAir and Scoot that were shining stars, from their stronger standing after some reversal in excessive low cost carrier expansion last year.
Regarding the Tiger privatisation, benefits, like reallocating traffic rights to Scoot to maximize revenue potential far outweighs the acquisition costs.
In short, CIMB highlights that risks for SIA skews towards the upside. It maintains Add on SIA with TP lowered to $12.83 from $12.97
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