Printer Friendly

Airline Finance News - Asia / Pacific.

Dec 21, 2008

With OPEC expected to announce production cutbacks, oil prices spiked briefly on Monday, helping to drive down the Amex Airline Index by 2.5%. Nine of 13 airline companies traded down as oil futures touched $50.05 a barrel before settling at $44.98. Dec 16, 2008

Air India

Air India plans to ask for INR25 billion ($502.8 million) from the government to help finance expansion and its continued integration with Indian Airlines, Chairman and MD Raghu Menon told the Indo-Asian News Service. "We have a very small equity base of INR1.45 billion but our aircraft acquisition plan alone is worth INR450 billion," he said. "We will go to the civil aviation ministry very soon with a proposal." AI will ask for INR10.5 billion in equity and the remaining INR10 billion in debt and plans to complete its merger with Indian by the end of 2009 or the first quarter of 2010 at the latest, Menon told IANS. Regarding the significant impacts of the industry downturn in India, he said demand for Air India has fallen 12%-15%. The Ministry of Civil Aviation said the country's airlines transported 3 million passengers in November, down 4.2% from the prior month. Jet Airways led the way with 570,000, followed by Air India at 539,000. AI had a load factor of 57.5%. Dec 15, 2008

Air New Zealand

Air New Zealand issued a challenge to key New Zealand airports to follow Singapore's decision to cut landing charges by 10% to stem the drop in tourists. ANZ Deputy CEO Norm Thompson said Auckland, Wellington and Christchurch should follow suit and work with airlines to help stimulate travel. "We all need to play our part in stimulating travel. Airports could assist in keeping fares lower by reducing landing fees during this economic downturn," he said. "Unlike Singapore, the costs of landing at Auckland, Wellington and Christchurch airports are excessive already by international standards. That CAAS is stimulating the market by lowering landing costs at Changi even further should be a loud signal to New Zealand airports." Dec 19, 2008

British Airways, Qantas Airways

British Airways and Qantas have ended discussions of a possible merger after failing to agree on a deal.A statement from both airlines said that despite detailed discussions and the "potential long term benefits" they have "not been able to come to an agreement over the key terms of the merger, at this time."According to reports, Qantas ceo Alan Joyce last week warned that a merger between the two flag carriers would only go ahead if Qantas could secure major revenue and cost benefits. Dec 18, 2008

China

Chinese carriers have had mixed reactions to CAAC's recent call to "cancel or delay" 2009 aircraft orders as a part of an effort to lift the domestic airline industry out of its current difficulties. CAAC also encouraged carriers to return leased aircraft and to ground or sell older planes, in addition to capacity adjustments, in order to reduce deliveries of foreign-made aircraft. China Eastern Airlines answered the call and has applied to delay 2009 deliveries, but it noted that number of aircraft it will delay needs "further analysis of the market for next year." According to its original plan, CEA is expected to take 29 aircraft in 2009. Dec 19, 2008

China Southern Airlines

China Southern Airlines Group Chairman Liu Shaoyong was appointed as the new chairman of China Eastern Airlines parent China Eastern Air Holding Co. Friday, appearing to pave the way for the merger of CEA and Shanghai Airlines. In an effort to boost Shanghai's status as an international aviation hub, the State-owned Assets Supervision and Administration Commission of the State Council, CEA's controlling shareholder, reached agreement with the State-owned Assets Supervision and Administration Commission of the Shanghai Municipal Government, SAL's controlling shareholder, on the merger of the two Shanghai-based airlines. Key details on how the combination will move forward remain undecided, but Liu is expected to be chairman of the merged carrier. The government's plan to revive CEA includes a change in leadership in advance of any consolidation. Dec 15, 2008

Japan Airlines

Japan Airlines parent JAL Group said it will participate "on a voluntary basis" in trials of a Japan-only emissions trading scheme developed by the government and set to run through 2012. JAL is targeting a 16% cut in carbon dioxide emissions per ASK of its domestic fleet each year through 2012. Dec 15, 2008

Jetstar Pacific

Vietnamese LCC Jetstar Pacific parent State Capital Investment Corp., which holds 75.8%, was granted permission by Prime Minister Nguyen Tan Dung to raise money by issuing additional shares to existing holders and to reduce its holding to 51% by selling its right to buy additional shares to other domestic stakeholders, the state Vietnam News Agency reported. Qantas holds 18% of the carrier and is allowed to take up to 30%. Jetstar Pacific already has lost nearly $50 million this year and has cut back on some routes while delaying the launch of others, VNS reported. Dec 17, 2008

Malaysia Airlines

Malaysia Airlines is in talks with Qantas regarding some kind of partnership and intends to "pursue strategic partnerships to create additional value," CEO Idris Jala confirmed in a statement cited by widespread press reports. Dec 17, 2008

Singapore

Civil Aviation Authority of Singapore will extend its existing Air Hub Development Fund for an additional year to Dec. 31, 2009, with a 30% increase to S$130 million ($87.1 million) in order to "help airlines and airport partners affected by the global economic downturn." A 25% landing fee rebate will be offered to carriers operating at Singapore Changi and nearby Seletar, up from 15%, in addition to a 15% rebate on office, lounge and warehouse leases. Dec 15, 2008

ZZ AirGuideBusiness 081222

Editorial eMail: edit@AirGuideOnline.com For Air Transport & Travel Business Experts contact our Director of Content Aram Gesar eMail: bizintel@AirGuideOnline.com For Advertising and Marketing: advert@AirGuideOnline.com For Custom Content: content@AirGuideOnline.com ISSN 1939-666X - Copyright [c] 2008 AirGuide / Pyramid Media Group, Inc. All rights reserved.
COPYRIGHT 2008 Pyramid Media Group, Inc
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 2008 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:AirGuide Business
Geographic Code:8NEWZ
Date:Dec 22, 2008
Words:1020
Previous Article:Airline Finance News - Africa / Middle East.
Next Article:Airline Finance News - Europe.
Topics:

Terms of use | Privacy policy | Copyright © 2020 Farlex, Inc. | Feedback | For webmasters