SIA

SIA: Qantas’ planned Asian unit will have cabins more luxurious than those on the group’s flagship Airbus A380s in a bid to lure fliers from SIA. Qantas CEO says it “will be a top premium product”, and have a “private-jet feel”.
Qantas is considering setting up the new unit in either Spore or KL. It will operate under a new brand, and will begin services with 11 single-aisle A320s. That will enable the new unit to fly to Australia, India and China.

This move may add to pressure on SIA, whose main flying unit made a loss in 1QFYJun12, on competition from budget airlines and Middle Eastern carriers.

The stock price has already been hard hit, and is down almost a third from its recent $15.64 peak in mid Sep ’10. Technically, support is at $10.50 and a close below that could see a next move toward the psychological $10 level. Resistance at $11.