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Move to streamline Tigerair, Scoot ops reverses SIA share fall

Analysts say operating the budget carriers under one company is a move in the right direction

Nisha Ramchandani

Published Wed, May 18, 2016 · 09:50 PM

Singapore

SHARES in Singapore Airlines (SIA) closed 13 cents higher at S$10.76 on Wednesday, after the group announced that it would operate its two budget carriers, Scoot and Tiger Airways, under one company.

This arrested a downward trend in trading of the shares, which has been sliding since the group released its financial results last Thursday after the market closed. Fourth-quarter net profit for FY16 were below analyst expectations at S$224.7 million, while yields suffered in line with the tough operating environment.

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