Wednesday, June 21, 2017

Why AirAsia’s Chinese Budget Airline Venture Is Bad News for China’s Airline Stocks

http://www.barrons.com/articles/why-airasias-chinese-budget-airline-venture-is-bad-news-for-chinas-airline-stocks-1497931423

Crucial Perspective says the new carrier could snatch traffic from China’s big, established airlines. For example, China Southern Airlines (1055.HK) and its associated subsidiaries currently have a 40% market share at Zhengzhou Airport. Hainan Airlines (600221.CN) has 28% and China Eastern Airlines (670.HK) has 10%.

 AirAsia's stock has soared 40% in 2017, versus 10% for the Malaysian index.

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