Virgin Blue’s share price loses more altitude; extensive review of operations announced
Shares in Virgin Blue were weaker again yesterday having fallen sharply after last Friday's warning. The stock lost another 6.6% yesterday on three times average daily volume.
The carrier's new CEO, John Borghetti, has announced plans to redesign the carrier's route network, inflight product and seating in an effort to reduce its exposure to the leisure market and double its share of the business market. The carrier is currently conducting an extensive review covering its New Zealand operations, suspending or streamlining low-cost domestic services and a possible revamp of V Australia. A route review is expected to be completed by the end of this month.
Tiger Airways Australia welcomes new CEO
Also in the Australian market, Tiger Airways Australia new CEO, Crawford Rix, who took up the position on 01-Jun-2010, has pledged to make Tiger Australia more customer-friendly, adding that his first goal is to improve the carrier's public image and its on-time performance. Shares Tiger Airways (trading in Singapore) gained 1.8% yesterday.
SpiceJet Board approves USD75 million fund raising
Leading the gains among the major Asia Pacific airlines yesterday was Indian LCC, SpiceJet, with a share price gain of 5.2%. The carrier's Board has approved a fund raising exercise of up to USD775 million, via equity linking instruments.
Asia Pacific selected airlines daily share price movements (% change): 02-Jun-2010
Source: Centre for Asia Pacific Aviation & Reuters