Originally Posted by
Kachjc
SWIRE has been around for 200 years.
If it did not adapt they would have sunk a long time ago...
realistically look at the LCC market, yes it is growing but what % share does it have?
Why would you launch an LCC in a slot constrained airport?!!!!
It makes you wonder why some of these smart analysts are saying all the wrong things about CX and LCC.
CX
does not need to take a leaf out of the SQ playbook about starting an LCC.
SQ's Budget Aviation Holdings only made
SGD 3 million for Q1 FY2017-18. Hardly much given the amount invested in running this subsidiary. Break-even load factor was 86% whilst passenger load factor was 84%.
It also seems SQ's cargo division hasn't benefited greatly from the recent cargo rebound. Not to mention profits declining at their regional subsidiary Silkair.
SIA itself had a one-off item which inflated their Q1 FY2017-18 results. If you exclude this and add the Q4 (Jan-Mar 2017) figures, then SIA Group would be running an overall loss.
To me, it seems obvious that some of these Singapore based analyst have a deeper affiliation and bias towards SQ -
BAD ANALYSTS!!!