Taiwanese airlines gain on increasing Hong Kong flights, Qantas engineers to strike


Hong Kong SAR and Taiwan have reportedly expanded their air services agreement, increasing the number of flights for airlines of both sides by 28 per week.

It is expected to come into effect in Jun-2011 at the earliest. The agreement may also increase the number of airlines operating on the sectors. A formal agreement is expected to be signed this month.

Shares in China Airlines and EVA Air gained 1.1% and 2.4% yesterday, while Cathay Pacific eased 0.4%.

EVA Air reported a 3.6% year-on-year decline in sales revenue to TWD8250 million (USD288.1 million) in Apr-2011. For the first four months of 2011, the carrier reported a 2.3% increase in sales to TWD32,435 million (USD1133 million). China Airlines reported a 4.2% year-on-year decline in sales revenue to TWD10,797 million (USD377.0 million) in Apr-2011 and a 0.3% decline in sales to TWD42,347 million (USD1479 million) for the first four months.

Qantas meanwhile expressed its "extreme disappointment" that the Australian Licenced Aircraft Engineers Association (ALAEA) "abruptly halted conciliation talks and announced industrial action" this Friday. Investors appear unperturbed; the airline's shares gained 0.5% yesterday.

Selected Asia Pacific airlines daily share price movements (% change): 09-May-2011

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