Skymark Airlines shares slump on new offering, AirAsia X signs engine deal

Global LCC shares were mixed yesterday, led lower by Japan's Skymark Airlines whose shares slumped 15% after the carrier announced plans the day prior to issue new shares to fund the purchase of A380 equipment.

The company hopes to raise JPY21.29 billion (USD261 million) in the share offering, which will increase its outstanding shares by 28%.

AirAsia X has meanwhile signed a USD600 million contract with General Electric to purchase six CF6-80E1 engines from GE Aviation, to power three new A330-200 aircraft scheduled for delivery beginning 2012, with the remainder by 2014. The agreement signed on 18-May-2011 includes a 20-year service agreement and the option to buy four more engines. CEO, Azran Osman-Rani stated that by 2020, AirAsia X's fleet will increase to 38 aircraft from 11 currently. AirAsia Bhd's shares fell 1% yesterday.

Tiger Airways gained 1.3% ahead of its 4Q earnings announcement later today.

Selected LCCs daily share price movements (% change): 18-May-2011