Hainan Airlines sees double-digit pax and cargo growth in Oct-2009

Hainan Airlines’ shares slipped 2.9% yesterday, coinciding with the release of the carriers’ Oct-2009 traffic results. During the month the carrier reported a 17% increase in passenger numbers to 1.6 million, while passenger load factor slipped slightly, down 0.7 ppts to 80.1%. Cargo volumes were up by 49%.

Hainan Airlines passenger number growth and cargo volume growth:  Oct-2008 to Oct-2009

Kingfisher to raise USD600 million; Jet Airways to reportedly receive clearance to raise USD400 million

In India, Kingfishers’ shares gained 5.6% yesterday as CEO, Vijay Mallya, confirmed the carrier’s plans to raise up to USD600 million in the current fiscal year, ending 31-Mar-2010. The fund raising exercise will be split between USD400 from private equity investors, USD100 through a rights issue and USD100 through global depository receipts (GDR). 

In other financing news in the Indian market, India’s Ministry of Civil Aviation (MoCA) reportedly announced it may provide Jet Airways with “conditional” clearance to raise USD400 million through a qualified institutional placement to international investors. The carrier has also reportedly received “in-principle” approval for the fund raising from the Foreign Investment Promotion Board (FIPB). Jet Airways’ shares were up 1.1% yesterday.

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

Qantas and British Airways concerned about Middle Eastern carriers presence on Australia-London services

In the South Pacific region, Virgin Blue’s shares gained 8.6% yesterday, while Qantas’ shares were up 3.0%.

See related article: Delta-Virgin Blue and global alliances. Joint venture is found to have public benefits

Qantas and British Airways are reportedly seeking an extension to their JV agreement for Australia-London services with the Australian Competition and Consumer Commission (ACCC), due to concerns Middle Eastern carriers, Emirates, Etihad and Qatar Airways, will increase their share of the Premium market on the route to approximately 50% by 2012.

British Airways stated it will “seriously contemplate” reducing Australia service frequency in the medium term if the JV extension is not approved. The two carriers have seen their share of the Premium market on the route decline from 60% to 55% since 2003. The ACCC is expected to make a decision on the application in Mar-2010.