SIA

SIA: Massive US$17b order for 60 aircraft planes spread across Airbus and Boeing, for delivery over 2015-2019 period. The 30 planes ordered from Airbus include an option for 20 more aircraft of a larger make. Order of US$17b is among the largest for SIA’s history, as the group strives to retain its industry leading position with the penetration of recent competition arising from its Middle Eastern peers, as well as the low-cost carriers. Average age of SIA’s current fleet at 6.6 years old is among the world’s youngest. An aircraft would typically have a lifespan of between 25-30 years. SIA currently trade at 1.0x P/B, with street estimates for a 12-month TP of $11.41 implies an upside of 5.3%.