Wednesday, June 21, 2017

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

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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