- Chinese airlines have bumper day on promise of big government cash hand-outs;
- Kingfisher's shares rise on reports of foreign airline interest.
Shares in China's major airlines had a strong day yesterday on reports the Chinese Government could approve requests by the big three airlines' parents for emergency funding support. The government could provide the parents of Air China, China Eastern Airlines and China Southern Airlines approximately USD440 million each to help them cope with significant financial pressures.
Asia Pacific selected airlines daily share price movements (% change): 17-Nov-08
India's Kingfisher Airlines also had a strong day, rising 6.6% in Mumbai yesterday on reports by Chairman & CEO, Vijay Mallya, that he had received offers from several foreign airlines to buy a stake in the carrier. Any deal would however be a long way off, requiring a change in government policy. With elections scheduled next year in India, significant policy changes are unlikely for a least a year.
Want more analysis like this? CAPA Membership gives you access to all news and analysis on the site, along with access to many areas of our comprehensive databases and toolsets.
Find out more and take a free trial.