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.
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
Transport & Logistics
Huawei’s smart car tech offers automakers route to China sales
Sri Lanka to hand management of China-built airport to India, Russia companies
Tesla’s plan for affordable cars takes page from Detroit rivals
Toyota is investing US$1.4 billion to build another all-electric SUV in US
Airbus net profit soars 28% in first quarter
AirAsia discloses new listing plans under RM6.8 billion units merger