Transportation Industry

Airline Finance News - Asia / Pacific

AirGuide Business, Sept 8, 2008

Korean Air

South Korean airline shares tumbled on Monday, hit by the rapidly weakening won, as investors dumped the stocks on fears of snowballing losses from foreign currency debt and fuel imports. Korean Air, the country's top airline and also the world's biggest air cargo carrier, dropped 15 percent to close at 33,000 won as the won hit its weakest level against the dollar in almost four years. Shin Min-seok, an analyst at Daewoo Securities estimates foreign currency debt at Korean Air at USD$5.3 billion. Korean Air, which incurred KRW273 billion (USD$248 million) in currency-related losses in the second quarter alone, said it was hedging up to 30 percent of its net dollar costs and trying to increase dollar revenues. Normally, Korean Air would see dollar spending exceeding income by USD$2 billion a year, the company said in a statement. Sep 1, 2008

Polynesian Blue, Virgin Blue

Polynesian Blue, the joint venture between Virgin Blue and the Samoan government, reported a pre-tax profit of NZ$9.2 million ($6.5 million) in the fiscal year ended June 30, up 71% from the NZ$5.4 million earned the prior year, the Centre for Asia Pacific Aviation reported. On Sept. 12 DJ will add a 12th weekly Auckland-Apia frequency and on Dec. 1 it will launch weekly Brisbane-Apia service. Sep 1, 2008

Thai Airways

Thai Airways International's services to three airports in southern Thailand have returned to normal. Hat Yai, Krabi and Phuket airports in southern Thailand were closed on August 29 but the airports have since re-opened and a Thai Airways' spokeswoman in Bangkok says the Star Alliance's carrier's services to Hat Yai and Krabi returned to normal yesterday morning and Phuket returned to normal yesterday at 2:00 local time. These three airports were temporarily closed because anti-government protesters had disrupted airport operations. It meant that thousands of passengers were left stranded in the country's south, and some were international passengers, because Phuket airport is Thailand's second major international airport. Thailand is currently gripped by anarchy brought on by anti-government protesters who are trying to topple the democratically-elected government. His enemies say Samak is a stooge for Thailand's former prime minister Thaksin Shinawatra, who was toppled from power in September 2006 and now faces corruption charges. Last month Thaksin and his immediate family fled Thailand and are now residing in London. Sep 1, 2008

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