Global airline IPOs still need tailwind to fly

Hong Kong

GLOBAL airline initial public offerings still need a tailwind to fly. Among those waiting to list are Hong Kong Airlines, Virgin America and Bangkok Airways. Yet most such sales since 2010 have lost altitude. Hopefuls need something special to buck the industry's trend of value destruction.

Only three out of 15 global airline stock listings since the start of 2010 are trading above their offer price as at Oct 3, according to an analysis by Breakingviews. Low-cost US carrier Spirit Airlines has performed best; Singapore's budget Tiger Airways worst. Returns in the industry worldwide remain 2.2 per cent below the cost of capital, the International Air Transport Association reported in June.…