There may be a rights issue. But if they are kind to opmi, they will issue bonds to Temasek instead.
I think the writer is a bit premature in bringing attention to save SIA. It will survive for a long time. But it will probably be in fits and starts, just like it had in the past, though possibly worse now with more competition.
Perhaps more noteworthy is the effect a competitively weaker SIA will have on SIAEC.
As an aside, Airasia looks more interesting, even as it is presently under corruption investigations.
That's a 2015 article..how is this relevant?
(21-03-2020, 02:42 PM)karlmarx Wrote: [ -> ]There may be a rights issue. But if they are kind to opmi, they will issue bonds to Temasek instead.
I think the writer is a bit premature in bringing attention to save SIA. It will survive for a long time. But it will probably be in fits and starts, just like it had in the past, though possibly worse now with more competition.
Perhaps more noteworthy is the effect a competitively weaker SIA will have on SIAEC.
As an aside, Airasia looks more interesting, even as it is presently under corruption investigations.
You mean do a "SembCorp-SembMarine-Temasek" loan..
Temasek should recap SIA and/or its subsidaries to go on the offensive for landing rights and airport-related services.
In good times, the populist politicians would frame selling national airlines stakes as "treason", in bad times, would be seen as a white knight.
I wonder if SembMarine will finally be acquired by Keppel. Or if there may be asset swaps between Keppel and SembMarine. But I think they have always preferred at least two players in any industry to allow for some competition, which in the long-term, will be good for the companies by keeping them on their toes.
Anyway, i'm staying away from all these even though their prices are at multi-year lows, and there may be potential M&A events.
Doubt that SembMarine will be acquired in the near term In a market crash, cash is king.
Airlines may be worth looking at after the bailout terms are announced. It seems too early to look at airlines now when their survival could be in doubt. Bailout may not be cheap in market crashes; think Citibank bailout in the 2008 GFC.
(21-03-2020, 06:55 PM)LionFlyer Wrote: [ -> ]That's a 2015 article..how is this relevant?
The situation now may be much worse for SIA...
Compare SIA hedging price and current oil price. 80 versus 20.
A lot of oil Analysts are saying 20 dollars level will be breached soon....just need to Google and find out.
personally, I think SIA may be teetering on the brink of bankruptcy by June 2020... in a few more months time..
With Spore effectively closing the border by tomorrow, this is probably the right thing to do. Just like the movie Dunkirk, the fight can be done another day.
SIA confirms 96% capacity cuts, grounding 138 planes
The fresh cuts will result in the grounding of around 138 SIA and SilkAir aircraft, out of a total fleet of 147, SIA said. Its low-cost unit, Scoot, will also suspend most of its network, grounding 47 of its fleet of 49 aircraft.
https://www.businesstimes.com.sg/compani...138-planes
Wonder what would be the fate for its retail bond issued in March 2019 and 2nd batch of coupons going to be paid out on 28 march 2020? The shares appear to be a gone case