If SIA needs more cash, it should tap travellers instead of investors

Ben Paul

Published Mon, Oct 12, 2020 · 09:50 PM

FORGET the three-hour lunches aboard an A380 aeroplane, and the 30-minute flight simulator experience.

If Singapore Airlines (SIA) wants to generate revenue from its customers, it should offer to sell vouchers that its customers can exchange for deeply discounted tickets once international air routes reopen.

"Should this be considered, it would be wildly beneficial to SIA shareholders and bondholders as it would eliminate another round of highly dilutive funding," said Nicolas Van Broekhoven of CrossASEAN Research, who publishes on Smartkarma, in a research note in August.

"It would also be a real show of love to (SIA's) customers and be highly appreciated," he added.

Specifically, Mr Van Broekhoven suggested that SIA offer its customers vouchers that can be exchanged for tickets priced at 50-75 cents on the dollar until…