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Hong Kong Airlines to order A380s, Thai Airways buys A350s and B787s

Analysis

Hong Kong Airlines is expected to place an order for A380 aircraft to capture a greater share of the Hong Kong aviation market.

Summary
  • Hong Kong Airlines is expected to order A380 aircraft to expand its presence in the Hong Kong aviation market.
  • The airline will announce the order at the Paris Air Show.
  • Cathay Pacific, Hong Kong Airlines' main rival, is still considering its options for very large aircraft.
  • Thai Airways plans to acquire 37 additional aircraft over the next six years, causing a slump in its shares.
  • An ash cloud from a Chilean volcano is affecting air space in Australia and New Zealand.
  • The Australian Stock Exchange was closed for a public holiday, so equity investors have not yet reacted to the natural disaster.

Hong Kong Airlines will announce the deal for an undisclosed number of A380s at the Paris Air Show next week, according to a Bloomberg report. Main rival, Cathay Pacific, has not ordered the type, but is still considering its very large aircraft options, according to CEO, John Slosar. Cathay's shares gained 0.4% yesterday.

Meanwhile, Thai Airways' shares slumped 4.1% as the carrier revealed plans to add three aircraft types to the group as part of the acquisition of 37 additional aircraft over the next six years. See related report: Thai to use both B787s and A350s on regional Asia routes; Thai Wing to operate A320s

Elsewhere, equity investors have not had a chance to react to the latest natural disaster to hit aviation in the region: an ash cloud from a Chilean volcano that is affecting Australia/New Zealand air space. The Australian Stock Exchange was closed yesterday for a public holiday.

Selected Asia Pacific daily share price movements (% change): 13-Jun-2011

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