Given that 70% of SIAE's revenue (ex-JVs) comes from SIA, we believe SIAE could ride on SIA's premium brand to contain its load-factor decline and achieve more stable rates, enabling it to outperform peers in this downturn. SIAE is trading close to its 911 and SARS valuation of about 8x CY10 P/E. We believe this is unjustifiable as its earnings are unlikely to plummet to epidemic levels. Maintain Outperform, although our target price has been shaved to S$2.91 from S$2.97 (blended valuations) as we trim our FY09 earnings estimate by 3% on the back of more conservative assumptions. The stock is backed by strong net cash and dividend yields of 9%.