Singapore Airlines

[Penguin]

Nick-san,

I would not even bother to go through the financial statements, cos I would never consider investing in airlines, as this is a highly regulated, capital intensive industry where no airline has a sustainable durable competitive advantage in the long run.

My 2 cents' worth.

Nick-san,

Being an ex-investor of SIA (recently divested out of SIA), I offered u the same advice of ichiran-san. Dun bother with airline stocks.

During good times, oil prices rise and it forces SIA to impose fuel surcharge and SIA is forced to do fuel hedging which sometimes lead to undesireable consequences i.e. hedging losses

During bad times (e.g. 2008 - 2009), less people fly esp the first class and business class which is SIA 'bread and butter'.

Also, add to it the emerging of budget airlines and some even started doing long haul flights at budget prices.

The few good catalysts for SIA would be its good dividend payout (not as good as REITS). Its blue chip status, govt would not let SIA collapse since it is a national icon (though not a certainty as indicated in some past news). The liberalising of the lucrative Aussie route for SIA would be a good catalyst, then again....Aussie...hmmm

Just my 1 cents worth. No longer vested.

PS. My virgin post here!! LOL