I have always wanted to buy SIA. It is one of the premium brand/stock in Singapore. However, the price is high and there are many associated risks with the stock, such as ridership numbers, oil price, stiff competition, etc.
I think SIA Engineering Co is a safer and less volatile option. SIA has a substantial stake in SIA Engineering Co, which is a leading aircraft maintenance, repair and overhaul (MRO) company providing MRO services not only to the SIA fleets, but to other airlines fleets as well.
Air travel is here to stay and maintenance activities cannot be compromised for the air transport industries. Even if SIA's ridership numbers fall, SIA will not compromise on maintenance. Especially that we already have one bad example in SMRT.
After buying into SGX in November and now SIA Engineering Co, I have used all my investable capitals. I ......
