Airline Finance News - Asia / Pacific.

Oct 1, 2007 Singapore and Malaysia governments stated Sept. 26 that unlimited access to the Singapore-Kuala Lumpur route, which a number of carriers have expressed interest in operating, will not be allowed until at least the end of 2008. Sep 27, 2007

DOT announces six new China routes. The Transportation Department on Tuesday announced the awards of six new China routes. Delta Air Lines and US Airways, the only major U.S. carriers without China flights, won permission to fly to China for the first time. Approval was given for Delta to fly between Atlanta and Shanghai; US Airways between Philadelphia and Beijing; Continental Airlines between Newark and Shanghai; American Airlines between Chicago and Beijing; Northwest Airlines between Detroit and Shanghai; and United Airlines between San Francisco and Guangzhou. With the newly announced routes, United will have 42 flights a week; Northwest, 28; American, 14; Continental, 14; Delta, 7; and US Airways, 7. Sep 26, 2007 Air Deccan Deccan Aviation Quarterly Loss Widens India's Deccan Aviation, which owns budget carrier Air Deccan, reported a wider net loss for the quarter to June 2007, hit by lower air fares and higher fuel costs. Sep 27, 2007 Cathay Pacific Airways Cathay on Friday requested the suspension of trading of its shares on the Hong Kong Stock Exchange "pending the announcement of a proposed transaction." Widespread reports speculated that CX and Air China were preparing to invest $4 billion jointly in CEA. But CX issued a statement yesterday saying the purchase of CEA shares "will not now proceed." It offered no explanation for why it backed away from the deal and said its shares will begin trading again today. Air China said in a statement it would make no offer for CEA shares for at least "the next three months." Sep 25, 2007

Cathay Pacific Airways

Cathay Pacific Airways said on Sept. 24 it had wanted to enlist the parent of Air China to buy a slice of rival China Eastern but the deal would no longer go ahead. Cathay, Asia's No. 3 carrier, said it had planned to team up with China National Aviation Holding Co to buy into China Eastern, which would have scuppered an agreed USD$918 million joint acquisition by Singapore Airlines and Temasek Holdings. Analysts said Cathay feared competition from Singapore Airlines on its lucrative Chinese network. Cathay did not explain why it had withdrawn its proposal, and did not give details of the intended purchase, which it said never got to the stage where it had to submit a proposal to China Eastern. Executives were not available for comment. Sep 25, 2007

Cathay Pacific Airways

Cathay Pacific Airways is set to address on Sept. 24 mounting speculation it is teaming up with Air China to buy shares in China Eastern Airlines. Analysts and media say Cathay and Air China hope to scupper Singapore Airlines' and parent Temasek's acquisition of a near-USD$1 billion stake in China Eastern. A Cathay spokeswoman said the firm would make a statement after Sept. 24's market close, but declined to comment on newspaper reports about a possible investment in Shanghai-based Eastern. Cathay's CEO Anthony Tyler said he would not comment on the reports. Sep 24, 2007 Cathay Pacific Airways, China Eastern Airlines Cathay Pacific Airways abruptly backed away Sept. 24 from its proposed bid to buy a stake in China Eastern Airlines that could have trumped the share sale agreement between CEA and Singapore Airlines. SIA and its parent Temasek earlier this month agreed to purchase 15.7% and 8.3% stakes respectively in CEA but the deal has not yet been approved by CEA shareholders. Sep 25, 2007 China Eastern Airlines The Hong Kong-listed shares of China Eastern Airlines reversed direction and fell sharply in the afternoon trading session Monday, on speculation that Cathay Pacific Airways may not be interested in buying a stake in the Chinese state-owned firm after all. Sep 24, 2007

Deccan Aviation, Air Deccan

Deccan Aviation of India, which owns budget carrier Air Deccan, reported a wider net loss for the quarter to June 2007, hit by lower air fares and higher fuel costs. A statement late on Thursday said the company's loss widened to INR1.7 billion rupees (USD$42.8 million) from INR1.1 billion a year ago. For the year ended June, its net loss was INR4.2 billion on revenue of INR21.4 billion. It had reported a loss of INR3.4 billion on revenue of INR12.4 billion in the 15 month period ended June 2006. Deccan Aviation reported a 15 month period as it changed its accounting year mid-way. United Breweries, which runs Kingfisher Airlines, owns 26 percent of Deccan and has also made an open offer for a further 20 percent of the carrier. Sep 28, 2007 Delta Air Lines, United Airlines Following Sept. 25's announcement that federal officials awarded Delta Air Lines and United Airlines with the first rights to launch nonstop services between the U.S. and China, American Airlines, Continental Airlines and Northwest Airlines on Wednesday all announced, they too, had received tentative approval to fly nonstop between the U.S. and China. Sep 26, 2007 Kunpeng Airlines, Shenzhen Airlines, Mesa Air Group  Kunpeng Airlines, the Xi'an-based JV regional carrier created by Shenzhen Airlines and Mesa Air Group, is scheduled to launch services today by opening 11 routes to destinations including Taiyuan, Tianjin, Yichang, Huhehaote, Nanchang, Zhengzhou and Hefei. It is noteworthy that Kunpeng was registered in Beijing but its operating base is located in Xi'an. Chinese industry analysts suggest that this "western attraction" for regional startups is driven partly by CAAC's policy of encouraging growth in the region through subsidies. Sep 28, 2007 Malaysia Airlines, MASWings Malaysia Airlines[sup.1] new regional carrier MASWings launched services today in the eastern Malaysian states of Sabah and Sarawak. MASWings was established to take back the operation of government-subsidised turboprop services between Sabah and Sarawak, as well as services within each state. Its inaugural flight was carried out this morning between Miri and Mulu. The new airline has taken over the services of privately-owned carrier Fly Asian Xpress, which has now dropped its short-haul flying and is instead switching to long-haul operations under the AirAsia X name. Fly Asian Xpress only took over subsidised East Malaysia turboprop operations last year but several months ago asked that the Government hand them back to MAS. Sep 29, 2007 Qantas Airways Chief executive Geoff Dixon is moving fast to restructure Qantas Airways following this year's failed takeover bid. Can he do the things private equity wanted. Sep 24, 2007 Shenzhen Airlines Shenzhen Airlines plans to seek a share listing in three years when it enters into the second phase of its "369" strategy, Chairman Zhao Xiang told China Business News last week. The 369 strategy is divided into three phases, namely to expand its fleet to 70 aircraft in three years, 100 in six years and 160 in nine years. "Currently we don't have to go listed, which won't make any financial sense to us now," Zhao said. The carrier has negotiated more than CNY30 billion ($4 billion) in bank credits since its May 2005 transition from a state-owned enterprise to a private company. Sep 24, 2007

ZZ

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