Airline Finance News - Asia / Pacific.

For more airline finance news, data and analysis, please go to: http://www.airguideonline.com/professional.htm Jun 19, 2006

Air Pacific

Air Pacific posted a 40% decline in net profit to $14.9 million for the financial year ended March 31 as fuel prices soared. That cost increase was reflected in a 5.7% rise in expenditure to $428.9 million while revenue was up only 2% to $449.4 million. Fuel climbed from 27% to 34% of total expenditure. The airline reported that tourist inflows to Fiji were impacted negatively in the final quarter by uncertainty over the imposition of a hotel turnover tax, fallout from adverse reporting of Fiji's stability ahead of its general election and high hotel charges compared to competing destinations. Air Pacific also blamed Australia's Pacific Blue for "adding excess seat capacity in a relatively flat tourism market, leading to artificially low airfares and lower overall seat factors." Jun 2, 2006

Cathay Pacific, Dragonair

Cathay buys Dragonair, access into mainland China. The much-anticipated change in shareholder structure among Cathay Pacific Airways, Dragonair and Air China announced Friday by owners Swire Pacific, CNAC and CITIC Pacific is set to create the most powerful airline group in Asia.Under the agreement, which is subject to shareholder approvals, Dragonair will be wholly owned by Cathay Pacific and Air China will acquire a 17.5% stake in CX, which in turn will double its holding in Air China to 20%. Swire will remain the principal long-term shareholder in Cathay. Dragonair will continue to operate under its own brand but under Cathay management, while CX and Air China will continue to develop closer ties. Jun 12, 2006

Malaysia Airlines

Malaysia Airlines said its passenger revenue increased 2.6% over the year-ago quarter to MYR2.15 billion despite a 5% reduction in capacity as yield rose 14% to 22.6 sen. "It is clear that Malaysia Airlines is finally taking all the right actions to resolve its perennial problem of low yield," Tengku Azmil said. Unit revenues climbed 7% to 15.5 sen. Operating costs grew 9% to MYR3.3 billion. The company cut heavily from staff costs, corporate advertising and sponsorship and maintenance among other areas, resulting in savings of MYR219 million. It did not provide unit cost figures. Jun 2, 2006

Malaysia Airlines

Malaysia Airlines suffers heavy losses but says turnaround plan is beginning to bear fruit. MAS this week reported a MYR321 million ($88.4 million) loss for the three months ended March 31, a quarter it called "Q1 2006" even though its last reporting period, ended Dec. 31, 2005, was labeled the third quarter of its fiscal year. The result, which compares to a MYR109.2 million profit earned in the quarter ended March 31, 2005, beat MAS's forecast loss of MYR349 million and was boosted by a "small" MYR7 million profit in March. Jun 2, 2006