AirAsia Indonesia IPO to be held end of 2011; Chinese airline shares mixed

AirAsia Indonesia confirmed its 20% IPO to be held at the end of 4Q2011 is expected to raise USD150 million-200 million. Funds raised will be used to procure new aircraft, boost capital, finance long-term operational costs and speed corporate growth. The company also aims to increase revenue by 15% in 2011. AirAsia shares rose 2.8% in trading on Thursday.

Chinese airline shares had a mixed day. Shandong Airlines and Hainan Airlines recorded falls of 3.4% and 2.6%, respectively, but China Eastern Airlines gained 4.8% and Air China shares were 2.8% higher. China Eastern announced yesterday that it has applied to launch services to Hawaii.

Shares in Thai Airways were up 7.2% yesterday. Earlier this week Thai Airways and Tiger Airways signed a shareholders agreement to establish Thai Tiger Airways. RyanThai signed on as a co-investor in Thai Tiger, with a 10% stake. 

Selected APAD daily share price movements (% change): 03-Mar-2011