Garuda Indonesia plummets after debut; AirAsia defers delivery of 10 A320s as it plans for A320neo

Garuda Indonesia was officially listed on the Indonesian Stock Market with the code GIAA on 11-Feb-2011. The carrier’s shares were listed at IDR750 each, but fell 17.3% at the close of trading. The shares had been down as low as IDR590, but recovered during the day.

Garuda Indonesia raised USD540 million from the 27.8% IPO. The carrier plans to use the proceeds to add new routes and build a fleet of 154 aircraft, including 25 for its budget subsidiary and four freighters, by 2015. The airline will reportedly launch services from Jakarta to Mumbai and New Delhi in Jun-2011. The Indian Government has also permitted direct connecting services from Indonesia to Chennai and Kolkata.

AirAsia announced it has deferred delivery of 10 A320s until 2015. The carrier reduced the number of aircraft scheduled to be delivered in 2012 from 24 to 12, with aircraft planned for 2015 delivery consequently increasing from 9 to 19. It will not incur any penalties for revising the delivery schedule. The carrier has deferred the delivery to provide it with more flexibility as it plans to switch from the carrier’s current order of the classic A320 to the new A320neo in the near future. The carrier ordered 175 A320s in 2005.

Shares in Pakistan International Airlines dropped 8.8%. The carrier announced that Managing Director, Aijaz Haroon, will be removed and it will halt plans for codeshare services with Turkish Airlines and reinstate sacked employees. Following industrial action at the carrier, normal international services were resumed on 12-Feb-2011.

Selected Asia Pacific airlines daily share price movements (% change): 11-Feb-2011