My Account Menu

CAPA Login

Register to trial CAPA Membership!

Kingfisher to raise USD1.5 billion in debt, Shanghai Airlines seeks government injection

Shangai CEO, Fan Hongxi
Shangai CEO, Fan Hongxi
  • Kingfisher Airlines shares hurt by concerns over fuel prices, debt load;
  • Shanghai Airlines appeals for government equity injection

Kingfisher Airlines' shares were savaged yesterday, falling 9.6%, while SpiceJet (-2.1%) and Jet Airways (-1.5%) were also sold off on reports that Indian state governments are resisting moves that would lower fuel taxation. Kingfisher also received a green light to raise USD1.5 billion in fresh loans, although a timeframe was not disclosed. An increase in the carrier's already substantial debts may be weighing on investors' minds.

Meanwhile, Air India's long-awaited government bailout package (USD500 million) is reportedly likely to clear various government approvals in the New Year.

Another carrier seeking fresh government cash is Shanghai Airlines, whose shares shot up 6.3% yesterday on reports it is seeking a capital injection from the Shanghai city government to reduce its debt load. Air China's shares also advanced 6.4%.

Asia Pacific selected airlines daily share price movements (% change): 17-Dec-08

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.