Limited profit boost for SIA's initiatives: analysts

SINGAPORE Airlines (SIA) is unlikely to receive a substantial boost to profits in the current operating environment from new joint- venture airlines in India and Thailand as well as from its KrisFlyer Spree retail website, an analyst report said.

Instead, easing of pressure, "albeit insignificant", will come from the grounding of loss-making carrier Tigerair Mandala as well as Changi Airport's $100 million Growth and Assistance Incentive programme, which will lower operating costs for airlines at Changi, the OCBC Investment Research note highlighted.

SIA has a 40 per cent stake in Tiger Airways, which in turn held 35.8 per cent in the now defunct Tigerair Mandala. Tigerair Mandala's shareholders have decided to cease funding the Indonesia-based carrier, which shut down operations on July 1.