Garuda to order 50 aircraft; Virgin Blue shares jump on SIA deal
Garuda Indonesia CEO Emirsyah Satar announced the carrier plans to order 50 aircraft this year. An order for 25 180-190 seat aircraft will be placed at the Paris Air Show, to be followed by an order for 25 sub-100 seat regional jets, to be made as early as 3Q2011. Shares in the Indonesian national carrier were down 3.8% yesterday.
Shares in Kingfisher Airlines were up 3.1%, as the carrier's Chairman Vijay Mallya reported it is achieving unprecedented load factors of 80-85%, a record for the carrier's six years of operation. Mr Mallya also confirmed that the carrier has resumed talks with investors to raise USD300 million through global depository receipts. The company has prepared a fresh business plan for prospective investors. It had planned a GDR issue in Dec-2010 to reduce debt but cancelled due to weak share prices. Mr Mallya also requested the company's investors be patient in the backdrop of an improvement in operating profit levels.
Shares in Virgin Australia jumped 7.4% yesterday, as the market reacted to the news of its new long-term strategic alliance with Singapore Airlines. The carrier's shares have shed almost a third of their value for the year to date. Singapore Airlines shares eased 0.4%.
Selected Asia-Pacific airline share price movements (% change): 07-Jun-2011