Asiana Airlines’ shares soared 13.6%, reversing recent weakness, on reports that Kumho Asiana Group, parent of Asiana Airlines and Air Busan, is expected to receive USD326 million (KRW380 billion) in fresh loans from creditors for two of its subsidiaries, Kumho Industrial Co and Kumho Tire Co, under a debt rescheduling scheme.
The creditor support came after the company’s creditors and controlling family reached an agreement following the close of trading on 08-Feb-2010 that private assets of the group’s owners would be put up for collateral for fresh loans, as a means to save the group from a liquidity crisis.
Also in North Asia, Japan Airlines’ soon-to-be-delisted shares remained neutral, while shares in Qantas slipped 1.4% yesterday and Cathay Pacific gained 1.2%, as JAL announced it would remain with Delta Air Lines and oneworld. Qantas' shares had closed before the JAL announcement and have risen 1.4% in morning trade today.
See related articles:
- Japan Airlines sticks with oneworld. Major victory for American Airlines, British Airways and Qantas;
- oneworld dodges a bullet. But the war is not won yet.
Jet Airways and FedEx in cargo venture talks?
Meanwhile, Indian shares climbed 0.7% on Tuesday, for three consecutive days of gains. Among the Indian airlines, Jet Airways rose 2.4%, on reports that the carrier is in talks with FedEx Corp to launch a dedicated cargo airline. Shares in Kingfisher and SpiceJet, however, were both weaker, down 0.7% and 3.6%, respectively. See related article: Indian airline financial wrap 3QFY2009/10: Jet Airways, Kingfisher Airlines, Air India and SpiceJet
Virgin Blue raised by Deutsche Bank
Virgin Blue’s shares gained 0.9% yesterday, as Australia’s second-largest airline was raised from “hold” to “buy” by Deutsche Bank. Goldman Sachs and RBS have also recently upgraded the LCC, following the carrier’s earnings upgrade last week.
Hainan Airlines’ shares slumped 6.1% yesterday, following the previous day’s 4.8% gain. See related report: Hainan Airlines parent, HNA Group, supercharged for growth
Asia Pacific selected airlines daily share price movements (% change): 09-Feb-2010