China Eastern Airlines Corp reportedly plans to issue up to CNY8 billion (USD1.2 billion) of bonds in Hong Kong this month, the first mainland carrier to issue yuan debt in Hong Kong (South China Morning Post, 05-Jul-2011). The lower interest rate in Hong Kong could reportedly save the carrier up to CNY300 million (USD46.4 million) in interest expenses this year. The carrier has reportedly hired Deutsche Bank, HSBC and China International Capital Corp to arrange the bond issue, which is scheduled to be launched this month, targeting institutional investors. Details of the bond are yet to be finalised but the airline intends to offer the bond at a term of three to five years, with an annual interest rate near 3%, which is at least 300 basis points short of the interest rate on the mainland.
China Eastern plans bond sale to raise USD1.2bn
You may also be interested in the following articles...
Malaysia Airlines update Part 2: China drives resumption of capacity and network growth
Malaysia Airlines will resume expansion in 2017 with several new routes and capacity increases on existing routes. Most of the expansion is directed at China, with eight new destinations, the resumption of a second daily flight to Shanghai, and upgauging one of its Hong Kong flights.
The airline is evaluating further expansion in China and elsewhere in North Asia in 2H2017 if it succeeds at securing additional A330s. Malaysia Airlines continues to seek leases on up to four A330s, which would result in a fleet of 19 aircraft.
Overall seat capacity will be up by 5% to 6% in 2017. Passenger numbers could potentially increase by more than 10% as Malaysia Airlines aims to significantly improve its load factor on the back of new lower fares.
CAPA Asia Aviation Summit Day 2: AirAsia X & Spring Airlines discuss opportunities in China
The second day of the CAPA Asia Aviation Summit began with a Q&A featuring AirAsia X CEO Benyamin Ismail and Spring Airlines VP Jonathan Hutt. The Chinese market dominated the conversation, particularly opportunities between China and Southeast Asia for both airlines.
The CAPA Asia Aviation Summit was held on 16-Nov-2016 and 17-Nov-2016, attracting over 300 delegates. The summit also included a gala dinner on 16-Nov-2016 featuring the CAPA Asia Pacific Aviation Awards for Excellence.
The remainder of Day 2 featured three panels: on distribution, ancillaries, and a wrap-up of the market outlook.