<TABLE cellSpacing=0 cellPadding=0 width=452 border=0><TBODY><TR><TD vAlign=top width=452 colSpan=2>Published October 25, 2008
</TD></TR><TR><TD vAlign=top width=452 colSpan=2>Biggest plunge in SIA's share price in 21 years
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(Shanghai)
SINGAPORE Airlines, the world's most valuable airline, saw its stock drop the most in 21 years yesterday, leading Asian carriers lower on concerns that a global recession will cut business and leisure travel demand.
SIA's share price dropped 10.4 per cent to S$10.52 in trading yesterday. Cathay Pacific Airways, Hong Kong's largest carrier, dropped 10 per cent, the most in seven years, to HK$8.78. Air China Ltd, the nation's biggest international carrier, fell 17.4 per cent to HK$1.81, the lowest since its listing in December 2004. The stock plunge is 'due to lack of confidence in the overall economy', said Huang Bin, board secretary of Air China, by phone yesterday. 'There's still room for further declines.'
Merrill Lynch & Co, UBS AG and JPMorgan & Chase Co are telling senior bankers in Asia to fly coach on short-haul flights and reduce non-essential travel as they step up cost cuts, officials at the firms said.
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</TD></TR></TBODY></TABLE>China Eastern Airlines Corp, the nation's third-largest carrier, said the plunge leading its share price to the lowest level in more than five years reflects the slowing demand for air travel. 'It's fair,' Luo Zhuping, director and board secretary of China Eastern, said by phone. 'No doubt that air travel demand will continue to fall for a certain period of time.'
China Eastern fell 17.3 per cent to 86 HK cents yesterday in Hong Kong, the lowest value since May 19, 2003, according to Bloomberg data. That's 77 per cent lower than the HK$3.80 SIA and its parent Temasek Holdings offered last year to purchase a combined 24 per cent stake in the Chinese airline. -- Bloomberg
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</TD></TR><TR><TD vAlign=top width=452 colSpan=2>Biggest plunge in SIA's share price in 21 years
<TABLE class=storyLinks cellSpacing=4 cellPadding=1 width=136 align=right border=0><TBODY><TR class=font10><TD align=right width=20>
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SINGAPORE Airlines, the world's most valuable airline, saw its stock drop the most in 21 years yesterday, leading Asian carriers lower on concerns that a global recession will cut business and leisure travel demand.
SIA's share price dropped 10.4 per cent to S$10.52 in trading yesterday. Cathay Pacific Airways, Hong Kong's largest carrier, dropped 10 per cent, the most in seven years, to HK$8.78. Air China Ltd, the nation's biggest international carrier, fell 17.4 per cent to HK$1.81, the lowest since its listing in December 2004. The stock plunge is 'due to lack of confidence in the overall economy', said Huang Bin, board secretary of Air China, by phone yesterday. 'There's still room for further declines.'
Merrill Lynch & Co, UBS AG and JPMorgan & Chase Co are telling senior bankers in Asia to fly coach on short-haul flights and reduce non-essential travel as they step up cost cuts, officials at the firms said.
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China Eastern fell 17.3 per cent to 86 HK cents yesterday in Hong Kong, the lowest value since May 19, 2003, according to Bloomberg data. That's 77 per cent lower than the HK$3.80 SIA and its parent Temasek Holdings offered last year to purchase a combined 24 per cent stake in the Chinese airline. -- Bloomberg
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