China Southern drops on USD2 bn credit agreement, Singapore Airlines & Thai Airways extend gains

China Southern Airlines’ shares fell 4.7% yesterday as the carrier’s parent stitched up yet another massive credit agreement, this time with Bank of Communications for a three-year USD2.2 billion credit line. The deal covers loans and lease financing, to support the Chinese carrier’s liquidity amid the financial crisis. The news dragged down China Eastern (-4.2%), Air China (-2.8%), Hainan Airlines (-2.2%) and Shanghai Airlines (-1.4%).

On the brighter side, Thai Airways and Singapore Airlines extended their rallies this week, rising 17.8% and 7.1%, respectively, despite a new IMF report saying Asia Pacific economies outside China and India face a deep and protracted recession.

Asia Pacific selected airlines daily share price movements (% change): 07-May-09