Air New Zealand down ahead of profit report; China Airlines divests Yangtze River Express stake
Shares in Air New Zealand slipped 0.8% yesterday, ahead of the expected release of the carrier’s financial results tomorrow (26-Aug-2010). Analysts expect the carrier to report a much-reduced underlying profit in the 12 months to Jun-2010, on reduced revenue levels, although the outlook for 2012 is expected to improve notably.
Indian airline shares weaker
Indian airline shares also declined yesterday, with SpiceJet leading the way with a 4.5% slump. Jet Airways’ shares slipped 3.9% on profit booking after the stock rose 10.66% in the preceding three trading sessions. Shares in Kingfisher Airlines also edged lower, slipping 3.5%. The reductions reflect overall market weakness, with the Sensex continuing to trade sluggishly due to weakness in global cues.
India Civil Aviation Ministry stops granting Jet Airways foreign codeshares
India’s Civil Aviation Ministry has, according to a Live Mint report today, decided to temporarily stop granting Jet Airways any new codeshare agreements with foreign carriers that are members of Star Alliance until Air India joins the alliance in Mar-2011. Jet Airways has yet to state when it would join an alliance but has been gradually collaborating with members of Star Alliance.
China Airlines divests stake in Yangtze River Express Airlines
In North Asia, China Airlines, Yang Ming Marine Transport Corp and Wan Hai Lines terminated their respective investments in Yangtze River Express Airlines, with China Airlines selling its 25% stake in the cargo airline and the other two companies selling their respective 12% and 6% stakes back to HNA Group.
China Airlines, which acquired its stake in 2006 for approximately USD46 million (the same value as the current transaction), reportedly commented that the sale was due to "lacklustre performance" by the carrier. China Airlines had acquired the stake in Yangtze River Express to secure revenue from China's rapidly expanding air cargo market, with spokesman, Hamilton Lieu, commenting: "We wanted to enter the Chinese market via Yangtze River Express before the direct air links between Taiwan and China."
Asia Pacific selected airlines daily share price movements (% change): 24-Aug-2010