SIA may land in unusual net-debt spot as soon as 2018

Singapore

A RECORD plane-buying spree is poised to land Singapore Airlines Ltd (SIA) in an unfamiliar territory.

South-east Asia's biggest carrier is expected to turn to a net-debt position as early as 2018 - for the first time in 13 years - as the company borrows money and sells bonds to meet capital expenditure needs, analysts say.

SIA, which has traditionally limited its debt load, would benefit from raising funds more cheaply through borrowings to improve return ratios and valuations, equity research firms including OCBC Investment Research and Crucial Perspective say.

The airline, which has US$53 billion of aircraft on order, expanded a medium-…