Shanghai Airlines shares crumble despite millions in support - share wrap

Shanghai Airlines shares were dumped on Friday after it won USD146 million in fresh funding from the Shanghai Municipal Government - the airline's backer. Investors are concerned the funding will not be enough to tackle the airline's heavy debt load and weak traffic outlook.

China Southern and Cathay Pacific also fell heavily on Friday, dropping 4.0% and 3.5%, respectively.

Meanwhile, Virgin Blue's launch of long-haul arm, V Australia, has sparked several parties, but not on the share market. Virgin Blue's shares fell a further 7.7% on Friday and opened lower in morning trade today.

Asia Pacific selected airlines daily share price movements (% change): 27-Feb-09