Kingfisher Airlines' shares were savaged yesterday, falling 9.6%, while SpiceJet (-2.1%) and Jet Airways (-1.5%) were also sold off on reports that Indian state governments are resisting moves that would lower fuel taxation. Kingfisher also received a green light to raise USD1.5 billion in fresh loans, although a timeframe was not disclosed. An increase in the carrier's already substantial debts may be weighing on investors' minds.
Meanwhile, Air India's long-awaited government bailout package (USD500 million) is reportedly likely to clear various government approvals in the New Year.
Another carrier seeking fresh government cash is Shanghai Airlines, whose shares shot up 6.3% yesterday on reports it is seeking a capital injection from the Shanghai city government to reduce its debt load. Air China's shares also advanced 6.4%.
Asia Pacific selected airlines daily share price movements (% change): 17-Dec-08