China Southern to respond to domestic rail competition, ANA domestic pax and freight remain negative
China Southern’s shares fell for the first time in a week, dropping 3.5% yesterday, the largest reduction in more than two weeks. The carrier’s share price has risen by 116% in 2009.
The carrier announced it would add more air express routes to better compete with high-speed railway connections, which are expected to impact approximately a quarter of the carrier’s domestic routes. The carrier added that it plans to extend air express routes across Southeast Asia.
Asia Pacific selected airlines daily share price movements (% change): 17-Nov-09
ANA Group, meanwhile, reported continued domestic weakness, with domestic passenger numbers and cargo volume down by 10.6% and 6.1%, respectively, while domestic load factors lipped 3.6 ppts to 65.4%.
The news was more positive on the international front, with passenger and cargo up, by 9.7% and 6.5%, respectively, and load factors up by double-digits, gaining 10.0 ppts sto 80.5%.
ANA passenger number growth and cargo volume growth: Oct-2008 to Oct-2009