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Hong Kong Airlines considers IPO; break-even or small profit in 2010

10-Sep-2010 10:08 AM

Hong Kong Airlines President, Yang Jiang Hong, stated the carrier is studying the feasibility of an IPO. “We’re studying various options to sell shares, possibly an IPO or back-door listing. We’re very optimistic about the aviation industry, especially when China’s economic growth is supporting demand,” he said (Bloomberg, 09-Sep-2010). He added that the carrier may place orders for six A330F this year to boost its cargo operations, with the carrier planning to launch long-haul passenger services to Paris, London and Sydney in 2011. The carrier is negotiating landing rights for passenger and cargo services to Taipei, to be launched in Nov-2010. Mr Yang said the carrier is expected to break even and post a small profit in 2010, on revenue gains of an estimated 30-40%, adding that revenues may triple in 2011 as it expands capacity.