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10-Sep-2010 10:08 AM

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

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.