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Jeju Air is a market leader in the South Korean low-cost carrier industry, operating more than 20 domestic and international air routes in Asian countries. In the midst of rising economic activity and the opening of more air routes in North Asia, Jeju Air is planning an initial public offering to seek capital to grow its China business. Meanwhile, Singapore Airlines is in discussions to purchase a 20 per cent equity investment in Jeju Air.

should singapore go ahead for the acquisition or not?

For the exclusive use of E. S.a., 2016. W15371 SINGAPORE AIRLINES: IN TALKS TO INVEST IN JEJU AIR 1 Ruth S.K. Tan, Zsuzsa R. Huszar and Weina Zhang wrote this case solely to provide material for class discussion. The authors do not intend to illustrate either effective or ineffective handling of a managerial situation. The authors may have disguised certain names and other identifying information to protect confidentiality. This publication may not be transmitted, photocopied, digitized or otherwise reproduced in any form or by any means without the permission of the copyright holder. Reproduction of this material is not covered under authorization by any reproduction rights organization. To order copies or request permission to reproduce materials, contact Ivey Publishing, Ivey Business School, Western University, London, Ontario, Canada, N6G 0N1; (t) 519.661.3208; (e) cases@ivey.ca; www.iveycases.com. Copyright 2015, National University of Singapore and Richard Ivey School of Business Foundation Version: 2015-08-25 Before the market opened on March 17, 2015, Singapore Airlines (SIA) confirmed that it was in discussions to purchase a stake in South Korea's largest low-cost carrier, Jeju Air: \"Singapore Airlines wishes to confirm that discussions have taken place on a possible equity investment in the airline. These discussions may not result in a transaction.\"2 SIA had, in its stable, several low-cost carriers, namely Tigerair, Scoot and Virgin Australia, but these had not performed well. In light of SIA's past negative experiences, the market did not receive the above announcement with open arms. SIA stock opened at SG$12.00 3 per share and was down 20 cents by the end of the day closing at $11.80 per share.4 First, should SIA invest in Jeju Air? Second, would SIA be better off without its low-cost carriers? THE BEGINNINGS OF SINGAPORE AIRLINES Malayan Airways Limited was incorporated on May 1, 1947. When the Federation of Malaysia was formed in 1963, the company was renamed Malaysian Airways. The name was changed yet again in 1966 to Malaysia-Singapore Airlines following Singapore's separation from the Federation. In 1972, MalaysiaSingapore Airlines ceased operations, resulting in the formation of SIA and Malaysian Airlines System. 5 By 2015, SIA had a presence in more than 60 cities in over 30 countries. 6 Its wholly owned full-service regional subsidiary, SilkAir, managed the short-haul market. Major shareholders of SIA included Temasek 7 Holdings (56.13 per cent), DBS Nominees (10.80 per cent) and Citibank Nominees (8.82 per cent). Apart from full-service flights, SIA also offered low-cost options through Tigerair, Scoot and Virgin Australia. This document is authorized for use only by European Collegeec Business School S.a. in 2016. For the exclusive use of E. S.a., 2016. Page 2 9B15N013 SIA'S INVESTMENT IN LOW-COST CARRIERS SIA was one of the founding shareholders (49 per cent) of Tigerair. 8 After a series of stake increases, it 9 had 76.1 per cent of Tigerair's equity as of March 2015. Tigerair first started operations in 2004. It 10 underwent an initial public offering (IPO) in January 2010 at an offer price of $1.50 per share. Like many low-cost carriers, Tigerair had been hit by regional overcapacity. However, unlike Malaysia's AirAsia and Indonesia's Lion Air, which operated out of huge domestic markets that could cushion the 11 impact of overcapacity, Tigerair did not have a similar advantage. This situation had translated into Tigerair's large losses in the past three financial years: losses of $104 million in March 2012, $45 million in 2013 and $223 million in 2014.12 Not surprisingly, its share price had slumped more than 70 per cent from its offer price of $1.50 per share in January 2010 to $0.33 per share on March 17, 2015. In comparison, the 13 broader market, represented by the Straits Times Index was up 16 per cent over the same period. SIA launched Scoot in June 2012. Although wholly owned, Scoot operated independently and was managed separately from SIA. 14 Observers speculated that SIA would shed Tigerair after it set up Scoot, as their offerings seemed to overlap, but that did not happen. On the contrary, SIA increased its ownership 15 of Tigerair. In less than two years, Scoot had accumulated $25.2 million in losses. In 2014, it sank deeper into the red when it posted a full-year loss of $65 million. In October 2012, SIA bought a 10 per cent stake in Virgin Australia Holdings Ltd. for AU$105 million .16 By November 2014, the stake had increased to 22.8 per cent, making SIA the second largest shareholder of Virgin Australia. 17 Virgin Australia's performance had declined over the years. It made a profit of AU$23 million in June 2012, suffered a loss of AU$98 million in 2013 and then had an even bigger loss of AU$356 million in 2014. 18 The poor performances of Tigerair, Scoot and Virgin Australia had reduced SIA's profitability in the past three years (see Exhibits 1 and 2). SIA'S RECENT INVESTMENT In 2013, SIA entered into a joint venture with India's conglomerate Tata Sons to set up TATA-SIA Airlines limited, with TATA holding 51 per cent and SIA the remaining 49 per cent. 19 The combined seed capital was US$100 million. 20 Its new airline, Vistara, commenced operations on January 9, 2015, as a premium full-service carrier. 21 The launch of Vistara was not TATA's maiden foray into the aviation sector. TATA Airlines, set up in the 1930s, had started as a mail service and later included passengers. It was renamed Air India and subsequently nationalized in 1953.22 UNDER CONSIDERATION A deal with Jeju Air would increase SIA's exposure to high-growth regions amid intense competition from low-cost carriers in South-east Asia as well as full-service Asian airlines such as Hong Kong's Cathay Pacific and two Gulf carriers, Emirates and Qatar Airways. Industry experts said the potential for low-cost carriers in North-east Asia was vast, as full-service carriers still dominated in China, Japan and South Korea.23 This document is authorized for use only by European Collegeec Business School S.a. in 2016. For the exclusive use of E. S.a., 2016. Page 3 9B15N013 JEJU AIR Jeju Air began operations in June 2006. It was owned by the Aekyung Group (81 per cent) and the Jeju Provincial Government (4.54 per cent). So far, Jeju Air's record had been clean except for an incident on August 12, 2007, where Jeju Air Flight 502 from Jeju to Busan skidded off the runway at Gimhae International Airport, in Busan, South Korea, due to a strong headwind, injuring six people on board and damaging the aircraft beyond repair. In the beginning, Jeju Air offered domestic services between the South Korean island of Jeju and the South Korean mainland. By 2015, it had become South Korea's third largest airline. Its fleet of 18 Boeing 737-800 aircrafts served the following destinations: China, Guam, Hong Kong, Japan, Korea, Northern Mariana Islands, Philippines, Taiwan, Thailand and Vietnam. It aimed to triple sales to KRW1.5 trillion ($1.85 billion) by 2020, catering to demand from North-east Asia including China.24 According to Yong Jun, an analyst at Hyundai Securities, \"Jeju Air's outlook is positive, considering that regional air travel demand continues to increase. The potential partnership could benefit both SIA and Jeju Air in cutting costs, expanding coverage and keeping competitors at bay.\" 25 JEJU AIR'S PLAN FOR IPO DEFERRED Jeju Air's head of planning department, Hyuk Park, disclosed that the airline had delayed its plan for an IPO in March 2015 to the fourth quarter of the year. 26 The plan was to raise US$176 million through floating newly issued shares and selling some existing shares. The funds raised would be used to grow its China business. As part of its five-year plan, Jeju Air also intended to acquire wide body aircrafts for long haul operations in 2019/20. According to Bloomberg, Jeju Air's over-the-counter shares traded at KRW31,000 in Seoul on March 17, 2015, giving it a market capitalization of KRW682 billion (US$604 million).27 VALUATION Based on Jeju Air's past financial performance and other relevant market information, what would be a reasonable valuation of its equity as of March 17, 2015? The historical financial statements of Jeju Air were obtained from a data provider (see Exhibits 3 and 4). For a discounted cash flow analysis, some projections would be necessary before a reasonable terminal growth rate could be applied in perpetuity (see Exhibit 5). For a relative valuation analysis, financial data on some peer companies were collected (see Exhibit 6), and their stock price performances were plotted in Exhibits 7 and 8. Exhibit 6 includes the airline-specific multiple, EV/EBITDAR. EV represents enterprise value, and EBITDAR represents earnings before interest, taxes, depreciation, amortization and rentals, where rentals refer to the operating lease expenses incurred. It is computed by adding lease rentals to EBITDA. The rationale for using EBITDAR as a metric for airline valuation is to adjust for financing expenses in the form of operating leases/rentals to facilitate more consistent comparison of operating performances across airlines. This document is authorized for use only by European Collegeec Business School S.a. in 2016. For the exclusive use of E. S.a., 2016. Page 4 9B15N013 EXHIBIT 1: SINGAPORE AIRLINE'S INCOME STATEMENTS, 2011-2014 Currency: Singapore dollars (in millions) Revenues 14,524.8 TOTAL REVENUES Cost of Goods Sold GROSS PROFIT Selling General & Admin Expenses, Total Depreciation & Amortization, Total Other Operating Expenses 479.1 OTHER OPERATING EXPENSES, TOTAL OPERATING INCOME Interest Expense Interest and Investment Income NET INTEREST EXPENSE Income (Loss) on Equity Investments Currency Exchange Gains (Loss) 7.7 Other Non-Operating Income (Expenses) 77.2 EBT, EXCLUDING UNUSUAL ITEMS Merger & Restructuring Charges Gain (Loss) on Sale of Investments Gain (Loss) on Sale of Assets Other Unusual Items, Total Legal Settlements Other Unusual Items EBT, INCLUDING UNUSUAL ITEMS Income Tax Expense Minority Interest in Earnings Earnings from Continuing Operations NET INCOME NET INCOME TO COMMON INCLUDING EXTRA ITEMS 31-Mar 2011 1,532.9 - -0.7 104.3 -217.5 -135.7 -66.1 1,419.0 270.2 -56.8 1,148.8 1,092.0 31-Mar 2012 14,857.8 14,857.8 11,837.1 3,020.7 579.3 1,542.3 582.0 2,703.6 317.1 -61.7 121.5 59.8 126.1 53.9 -13.0 543.9 - -5.6 0.4 -90.5 -1.3 -4.1 448.2 51.4 -60.9 396.8 335.9 1,092.0 335.9 14,524.8 10,425.2 4,099.6 645.2 1,696.0 2,820.3 1,279.3 -67.5 61.1 -6.4 175.1 31-Mar 31-Mar 2013 2014 15,098.2 15,243.9 15,098.2 15,243.9 12,251.3 12,317.0 2,846.9 2,926.9 608.1 645.7 1,611.8 1,601.2 372.2 372.2 2,592.1 2,619.1 254.8 307.8 -32.0 -28.6 92.5 82.3 60.5 53.7 145.3 48.8 -15.8 -28.3 -10.4 -8.7 434.4 373.3 - -29.4 8.3 - 56.6 53.1 -29.7 -29.1 -19.9 -87.0 - 371.5 469.6 367.9 28.0 -56.5 -62.7 -64.9 441.6 424.4 378.9 359.5 378.9 359.5 Note: EBT = earnings before taxes Source: Bloomberg, Singapore Airlines Ltd. Financial Statements, www.bloomberg.com/research/stocks/financials/ financials.asp?ticker=SIA:SP&dataset=incomeStatement&period=A¤cy=native, accessed March 19, 2015. This document is authorized for use only by European Collegeec Business School S.a. in 2016. For the exclusive use of E. S.a., 2016. Page 5 9B15N013 EXHIBIT 2: SINGAPORE AIRLINE'S BALANCE SHEETS, 2011-2014 Mar 31 2011 Mar 31 2012 Mar 31 2013 Mar 31 2014 7,434.2 412.9 17.6 7,864.7 1,381.8 36.9 1,418.7 335.5 103.6 56.7 9,779.2 22,429.4 -10,348.1 12,081.3 642.9 21.8 50.2 1,969.1 24,544.5 4,702.7 639.3 3.9 5,345.9 1,354.8 32.6 1,387.4 306.1 98.5 68.0 7,205.9 21,932.8 -10,053.8 11,879.0 1,030.1 34.4 49.0 1,844.6 22,043.0 5,059.6 365.5 2.2 5,427.3 1,578.4 38.8 1,617.2 274.9 103.2 76.9 7,499.5 21,805.2 -10,424.6 11,380.6 1,382.1 45.9 131.1 1,988.9 22,428.1 4,883.9 303.4 3.2 5,190.5 1,604.7 34.1 1,638.8 243.0 107.5 130.9 7,310.7 21,367.6 -10,781.6 10,586.0 1,981.1 50.0 165.3 2,549.4 22,642.5 2,885.4 2.4 76.7 64.8 244.4 102.3 1,953.8 5,265.0 800.0 210.6 294.0 - - 2,029.1 550.9 8,855.6 1,856.1 11,264.6 -258.4 31.1 12,893.4 13,187.4 22,043.0 3,055.7 5.7 74.6 67.8 160.1 138.7 1,966.8 5,401.6 800.0 140.6 312.6 - 163.7 1,948.2 571.9 9,026.0 1,856.1 11,460.1 -269.8 43.1 13,089.5 13,402.1 22,428.1 2,977.9 - 63.3 52.5 201.1 129.9 2,019.2 5,391.4 813.6 90.7 337.4 - 169.6 1,788.9 813.7 9,067.9 1,856.1 11,527.0 -262.2 116.3 13,237.2 13,574.6 22,642.5 Currency: Singapore dollars (in millions) ASSETS Cash and Equivalents Short-Term Investments Trading Asset Securities TOTAL CASH AND SHORT-TERM INVESTMENTS Accounts Receivable Other Receivables TOTAL RECEIVABLES Inventory Prepaid Expenses Other Current Assets TOTAL CURRENT ASSETS Gross Property Plant and Equipment Accumulated Depreciation NET PROPERTY PLANT AND EQUIPMENT Long-Term Investments Deferred Charges, Long-Term Other Intangibles Other Long-Term Assets TOTAL ASSETS LIABILITIES & EQUITY Accounts Payable Short-Term Borrowings Current Portion of Long-Term Debt/Capital Lease Current Portion of Capital Lease Obligations Current Income Taxes Payable Other Current Liabilities, Total Unearned Revenue, Current TOTAL CURRENT LIABILITIES Long-Term Debt Capital Leases Minority Interest Unearned Revenue, Non-Current Pension & Other Post-Retirement Benefits Deferred Tax Liability Non-Current Other Non-Current Liabilities TOTAL LIABILITIES Common Stock Retained Earnings Treasury Stock Comprehensive Income and Other TOTAL COMMON EQUITY TOTAL EQUITY TOTAL LIABILITIES AND EQUITY 2,725.7 1.7 976.7 61.4 440.2 183.1 1,904.9 6,232.3 800.0 275.8 298.4 24.1 - 2,181.1 528.4 10,041.7 1,832.4 12,474.7 -43.0 -59.7 14,204.4 14,502.8 24,544.5 Source: Bloomberg, Singapore Airlines Ltd. Balance Sheet, www.bloomberg.com/research/stocks/financials/ financials.asp?ticker=SIA:SP&dataset=balanceSheet&period=A¤cy=native, accessed March 19, 2015. This document is authorized for use only by European Collegeec Business School S.a. in 2016. For the exclusive use of E. S.a., 2016. Page 6 9B15N013 EXHIBIT 3: JEJU AIR'S INCOME STATEMENTS, 2010-2013 Currency: Korean won (in millions) Revenues Cost of Goods Sold Gross Profit Selling, Gen & Admin Expenses Operating Income (Loss) Non-Operating Income Non-Operating Expense Net Income (Loss) after tax 2013 432,338.786 372,380.401 59,958.386 2012 341,159.988 300,213.172 40,946.816 2011 257,724.739 211,077.503 46,647.236 2010 157,527.971 137,783.379 19,744.592 44,772.994 15,185.391 10,002.104 5,805.247 4,196.857 38,793.079 2,153.737 7,121.205 4,017.225 3,103.980 32,789.660 13,857.569 7,278.682 4,323.056 2,955.626 25,813.337 (6,068.746) 6,488.946 11,565.522 (5,076.576) 19,382.248 5,257.717 16,813.200 (11,145.322) Note: Operating Income was obtained after deducting operating lease expense, which was KRW2,537 million on December 31, 2013, representing 0.5869 per cent of sales. Source: PrivCo, JeJu Air Co., Ltd., www.privco.com/private-company/jeju-air-co-ltd, accessed March 17, 2015. EXHIBIT 4: JEJU AIR'S BALANCE SHEETS, 2010-2013 2013 2012 2011 Cash and Cash Equivalents 20,848.286 29,925.490 11,897.485 19,658.820 Inventory 3,856.413 2,999.490 2,798.415 2,554.525 Prepaid Expenses 4,186.403 3,891.732 2,572.980 1,682.402 Other Current Assets Current Assets Non-Current Assets Total Assets Short-Term Debt 2010 76,018.333 27,881.808 43,087.966 104,909.435 64,698.520 60,356.847 39,048.763 54,718.325 57,829.750 40,638.546 39,392.791 159,627.760 122,528.271 100,995.393 15,153.016 78,441.554 - 5,000.000 5,000.000 5,000.000 Other Current Liabilities Current Liabilities 96,891.233 76,464.500 59,527.122 96,891.233 81,464.500 64,527.122 56,959.909 51,959.909 Long-Term Debt - - 1,922.090 5,694.272 Other Non-Current Liabilities 10,109.315 7,818.810 5,943.379 3,998.524 107,000.548 89,283.310 72,392.591 66,652.705 Total Liabilities Common Stock 110,033.790 110,033.790 110,033.790 110,033.790 Retained Earnings Total Liabilities and Equity (57,406.578) (76,788.829) (81,430.988) (98,244.941) 159,627,760 122,528.271 100,995.393 78,441.554 Source: PrivCo, Jeju Air Co., Ltd., www.privco.com/private-company/jeju-air-co-ltd, accessed March 17, 2015. This document is authorized for use only by European Collegeec Business School S.a. in 2016. For the exclusive use of E. S.a., 2016. Page 7 9B15N013 EXHIBIT 5: DISCOUNTED CASH FLOW VALUATION ASSUMPTIONS 1. Jeju Air expanded according to its plans 28 and grew its fleet by 31 per cent in 2014 and at a constant rate of 24 per cent per year from 2015 to 2018. Aircraft Projection No. of Airplanes Acquisition of new planes % increase in airplanes 2013 13 2 18% 2014E 17 4 31% 2015F 21 4 24% 2016F 26 5 24% 2017F 32 6 24% 2018F 40 8 24% 2. Other income statement items could be projected on the basis of historical rates: Cost of goods sold was 85.87 per cent of revenue (based on four-year historical average). Depreciation rate was 8.55 per cent of non-current assets (based on average depreciation rates of peer companies). Selling, general & administrative expenses grew 21.51 per cent annually (a three-year historical average growth rate from 2011 to 2013). Non-operating income grew at 16.82 per cent annually (a three-year historical average growth rate from 2011 to 2013). Non-operating expense grew at 18.72 per cent (a two-year historical average growth from 2012 to 2013. Growth rate from 2010 to 2011 was excluded because of a large reduction in non-operating expense. Debt-to-equity ratio followed the industry average of 1.1. 29 3. The weights and the long-term growth rates were estimates. Capital spending, working capital and cash grew in proportion to revenue. The respective proportions were obtained by calculating a weighted average. The weights were applied on 2010 (10 per cent), on 2011 (20 per cent), on 2012 (30 per cent) and on 2013 (40 per cent). The weights gave greater emphasis to the more recent years. Long-term growth rate was 2.5 per cent. Source: The items in (1) were based on Jeju's plans. The growth rates in (2) were computed from past financial statements. The weights and the long-term growth rate in (3) were mere estimates. This document is authorized for use only by European Collegeec Business School S.a. in 2016. 9B15N013 1,742.25B 195.10M -2.00% -115.66B -592.82 N/A 0.34 2.15 - 3,186.95B 0.70 6,261.69M 2,782.98M 7.08% 362M 0.13 7.34 1.15 1.37 8.0 11,757M 1.79 0.89 40.24B 511.95M 0.84 27.1 1.27 2.48 10.8 1.25% 606.0M 52.2B CEB Philippines 86.20PHP CEBU AIR 0.88 1.555B 450M 1.13 12 1.56 3.25 9.1 9.94% 394.09M 7.06B EZJ.L LSE 17.92GBP EASYJET 0.60 3.95B 522.8M 0.37 17.27 2.91 4.45 11.9 10.38% 1,378.53M 14.649B RYA:ID Dublin 10.62EUR RYANAIR 0.43 5.05B 1.14B 1.64 12.42 1.65 4.54 8.6 6.11% 675.99M 31.24B LUV NYSE 46.21USD SOUTHWEST 1.52 908M -222.99M -0.23 N/A 0.59 1.55 - -30.38% 1.35B 431.85M J7X.SI SES 0.32SGD TIGERAIR 1.25 4.34B -355.6M -0.11 17.17 0.42 1.74 - -8.26% 3.54B 1.82B VIRGIN AUSTRALIA VAH.AX ASX 0.5150AUD Source: Annual reports, Yahoo Finance and Bloomberg, accessed on March 18, 2015. Note: MK = Malaysia Exchange; KSE = Korean Stock Exchange; LSE = London Stock Exchange; NYSE = New York Stock Exchange; SES = Stock Exchange of Singapore; ASX = Australia Stock Exchange; MYR = Malaysian ringgit; KRW = Korean won; PHP = Philippine peso; GBP = Great Britain pound; EUR = euro; USD = U.S. dollar; SGD; Singapore dollar; AUD = Australian dollar; M = million; B = billion; ttm = trailing 12 month; EPS; earnings per share; P/E = price/earnings ratio; P/S = price/sales ratio; P/B ratio = price/book ratio; mrq = most recent quarter; EV/EBITDAR = enterprise value/earnings before interest, taxes, depreciation, amortization and rentals ASIANA AIRLINES KO:ASA KSE 8930KRW AIRASIA BHD AIRA MK 2.25MYR EXHIBIT 6: KEY FINANCIAL FIGURES AND MARKET-COMPARABLE MULTIPLES OF SELECTED PUBLICLY TRADED FIRMS Ticker Symbol Stock Exchange Share price Market Capitalization Shares Outstanding Profit Margin (ttm) Net Income (ttm) EPS (ttm, diluted) P/E (ttm, forward) P/S (ttm) P/B (mrq***) EV/EBITDAR Debt plus Capital Leases (mrq***) Equity Beta Page 8 For the exclusive use of E. S.a., 2016. This document is authorized for use only by European Collegeec Business School S.a. in 2016. 100% 50% 0% 50% 100% 150% 200% 3/1/2015 1/1/2015 11/1/2014 9/1/2014 7/1/2014 5/1/2014 3/1/2014 1/1/2014 11/1/2013 9/1/2013 7/1/2013 5/1/2013 3/1/2013 1/1/2013 11/1/2012 9/1/2012 7/1/2012 5/1/2012 3/1/2012 1/1/2012 11/1/2011 9/1/2011 7/1/2011 5/1/2011 3/1/2011 1/1/2011 11/1/2010 9/1/2010 7/1/2010 5/1/2010 3/1/2010 1/1/2010 This document is authorized for use only by European Collegeec Business School S.a. in 2016. Source: Created by the authors using daily prices from Datastream. SIA TIGER AIRWAYS CEBU AIR ASIANA AIRLINES AIRASIA 250% EXHIBIT 7: CUMULATIVE HOLDING PERIOD RETURNS FOR PEER COMPANIES FROM SOUTH EAST ASIAN COUNTRIES FOR THE PERIOD FROM JANUARY 2010 TO MARCH 2015 Page 9 9B15N013 For the exclusive use of E. S.a., 2016. 3/1/2015 1/1/2015 11/1/2014 9/1/2014 7/1/2014 5/1/2014 3/1/2014 1/1/2014 11/1/2013 9/1/2013 7/1/2013 5/1/2013 3/1/2013 1/1/2013 11/1/2012 9/1/2012 7/1/2012 5/1/2012 3/1/2012 1/1/2012 11/1/2011 9/1/2011 7/1/2011 5/1/2011 3/1/2011 1/1/2011 11/1/2010 9/1/2010 7/1/2010 5/1/2010 3/1/2010 1/1/2010 This document is authorized for use only by European Collegeec Business School S.a. in 2016. Source: Created by the authors using daily prices from Datastream. 100% 50% 0% 50% 100% EASYJET 150% RYANAIR HOLDINGS 200% 250% SOURTHWEST 300% VIRGIN AUSTRALIA HDG. 350% 400% 450% EXHIBIT 8: CUMULATIVE HOLDING PERIOD RETURNS FOR PEER COMPANIES FROM NON-SOUTH EAST ASIAN COUNTRIES FOR THE PERIOD FROM JANUARY 2010 TO MARCH 2015 Page 10 9B15N013 For the exclusive use of E. S.a., 2016. For the exclusive use of E. S.a., 2016. Page 11 9B15N013 ENDNOTES 1 This case has been written on the basis of published sources only. Consequently, the interpretation and perspectives presented in this case are not necessarily those of Singapore Airlines, Jeju Air or any of their employees. 2 Jamie Lee, \"SIA in Talks to Buy Stake in Jeju Air,\" The Business Times, March 17, 2015, www.businesstimes.com.sg/companies-markets/sia-in-talks-to-buy-stake-in-jeju-air, accessed March 18, 2015. 3 All currency amounts are shown in Singapore dollars unless otherwise indicated. Note the exchange rates on March 17, 2015 were US$1= AU$1.31255, US$1= S$1.38875, and AU$1=S$1.05805. 4 Summary for Singapore Airlines Limited, Yahoo! Finance, https://sg.finance.yahoo.com/q/hp?s=C6L.SI&a=02&b=1&c= 2015&d=06&e=1&f=2015&g=d&z=66&y=66, accessed March 18, 2015. 5 Singapore Airlines, \"Singapore Airlines - Our History,\" www.singaporeair.com/en_UK/about-us/sia-history/, accessed March 18, 2015. 6 Singapore Airlines, \"Where We Fly,\" www.singaporeair.com/en_UK/plan-and-book/where-we-fly/, accessed March 18, 2015. 7 Singapore Airlines, \"Major Shareholders (as at 31 March 2015),\" www.singaporeair.com/jsp/cms/en_UK/global_header/ shareholdinginfo.jsp, accessed March 18, 2015. 8 Karamjit Kaur, \"Why SIA Is Keen to Heal Wounded Tiger,\" The Straits Times, November 2, 2014, http://business.asiaone.comews/why-sia-keen-heal-wounded-tiger, accessed March 18, 2015. 9 \"Singapore Airlines to Acquire All Outstanding Shares in Tigerair,\" www.ch-aviation.com/portalews/34175-singaporeairlines-to-acquire-all-outstanding-shares-in-tigerair, accessed March 18, 2015. 10 Saeed Azhar and Harry Suhartono, \"Tiger Air to Price S'pore IPO at S$1.50 A Share,\" Reuters, January 17, 2010, www.reuters.com/article/2010/01/18/us-singapore-tiger-ipo-idUSTRE60H08M20100118, accessed March 18, 2015. 11 Kaur, op. cit. 12 Summary for Tiger Airways Holdings Limited, Yahoo! Finance, http://finance.yahoo.com/q/is?s=J7X.SI+Income+ Statement&annual, accessed March 18, 2015. 13 Summary for STI Index, Yahoo! Finance, http://finance.yahoo.com/q/hp?s=%5ESTI&a=00&b=20&c=2010&d=02&e= 18&f=2015&g=d, accessed July 1, 2015. 14 Centre for Aviation, \"Launch of New SIA Subsidiary Scoot Shakes Up the LCC Market,\" June 4, 2012, http://centreforaviation.com/analysis/launch-of-new-sia-subsidiary-scoot-shakes-up-the-lcc-market-75191, accessed March 18, 2015. 15 Karamjit Kaur, \"Budget Carrier Scoot Bleeds $25 Million in Two Years amid Crowded Skies,\" The Straits Times, September 17, 2014, www.straitstimes.com/singapore/transport/budget-carrier-scoot-bleeds-25-million-in-two-years-amidcrowded-skies, accessed March 18, 2015. 16 David Fickling, \"Virgin Australia Sells 10% Stake to Singapore Airlines,\" Bloomberg, October 30, 2012, www.bloomberg.comews/articles/2012-10-29/singapore-air-buys-10-of-virgin-australia-amid-airline-shakeup, accessed March 18, 2015; Note the exchange rates on October 30, 2012 were US$1= AU$0.96467, US$1= S$1.21940, and AU$1=S$1.26406. 17 Mayuko Tani, \"Singapore Airlines Ups Stake in Virgin Australia,\" Nikkei Asian Review, November 11, 2014, http://asia.nikkei.com/Business/Asean-Business-File/Singapore-Airlines-ups-stake-in-Virgin-Australia, accessed March 18, 2014. 18 \"Virgin Airline Releases Full-Year Results after Qantas' Dire Loss Was Revealed,\" News Corp Australia, August 29, 2014, www.news.com.au/finance/business/virgin-airline-releases-fullyear-results-after-qantas-dire-loss-was-revealed/storyfnda1bsz-1227040905085, accessed March 18, 2015. 19 Siva Govindasamy and Anshuman Daga, \"RPT-Third Time Lucky? 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