China Southern Airlines estimates CAAC to open in 2 yrs

The market expectation that China would open CAAC to the foreign countries made China Southern Airlines (1055) and China Eastern Airlines (0670) undergo pressure. But the two companies said they didn¡¦t receive any formal notices from CAAC. The management team of China Southern Airlines estimated that CAAC would be opened in at least two years, after it finishes restructure. China Southern Airlines told the analysts of Salomon that the reaction was perfectly good and its profit also went up after its seven air lines carried out the new preferential discount policies. China Southern Airlines predicted that the cargo load would also rise by 2% and yield would only fall by 1-2%. The relevant restructure plan was expected to be approved at the end of this June.Salomon maintained the target prices of Southern Airlines and China Eastern Airlines at HK$2.5 and HK$1.25. The stock prices of the two companies are expected to rebound after the new charging schemes were clarified.  

Related stock : (1055;670)