Indian airline shares drop as railways cut fares

SpiceJet, Kingfisher Airlines and Jet Airways shares fell 4.7%, 2.1% and 1.0%, respectively, on 13-Feb-09, as the Railways Ministry announced a 2% cut in passenger fares under the union Budget. After last week's hike in domestic air fares - a move that prompted a government investigation in possible "cartelisation" in the sector - the attractiveness of rail travel has improved.

Elsewhere, shares in Virgin Blue, Air China, Hainan Airlines and China Airlines all gained more than 4% on Friday.

Asia Pacific selected airlines daily share price movements (% change): 13-Feb-09