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Virgin Blue surges on V Australia's deal with Delta; Taiwan airlines surge - share wrap

Virgin Blue CEO, Brett Godfrey
Virgin Blue CEO, Brett Godfrey

Virgin Blue's share price took off yesterday, soaring almost 13% as long-haul international offshoot, V Australia, signed an interline deal with Delta Air Lines offering seamless travel on the networks of each carrier and across the trans-Pacific route.

V Australia operates daily services from Sydney to Los Angeles and will be joined on the route by Delta from 01-Jul-2009, giving the carriers' passengers a choice of a double daily service, which should substantially enhance their competitiveness against incumbents Qantas and United Airlines. Delta offers 17 non-stop destination from Los Angeles.

Qantas shares rose 1.5% yesterday, but was outperformed by the Australian ASK Index, which rose 2.4%.

Elsewhere, shares in Taiwan's China Airlines and EVA Air gained 7% on investor optimism about improving cross-Strait ties.

Asia Pacific selected airlines daily share price movements (% change): 23-Mar-09

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