What I am going to state here may be just a hunch but I am seldom wrong. SIA is going to come out of this credit crunch or recession as you may call it even stronger and healthier. All the analysts' predictions are wrong as far as I am concerned. Just look at the trading of the SIA share today. It was traded at a high of S$13.78 and now hovering around $13.50. It plunged and lost almost 40% of its value at the height of the crisis.
Budget airlines may be good in terms of value for the tourists but for business people it is different. If a company is a prestigious one and is prospering why should it make its productive and hardworking executives travel cattle class or budget airlines? If I am working as an executive for a big and renowned company and it makes me fly budget or economy, I will switch allegiance. My reason for switching to another establishment is why work for a stingy company?
So you see people will still fly business and first class especially now when the recession is almost over and companies are reporting brisk businesses and turning in profits.
In this light,airlines like SIA will still do very well.