Hong Kong Airlines Studying Feasibility for Share Listing, to Buy Planes

Hong Kong Airlines Ltd., part of the city’s second-largest carrier group, is studying the feasibility of an initial public offering, President Yang Jiang Hong said.

The airline may place orders this year for six Airbus SAS A330 freighters to boost cargo operations, he said in Hong Kong today.

A rebound in air travel demand is boosting sales at closely held Hong Kong Airlines and affiliate Hong Kong Express Airways Ltd. Asia Pacific airlines increased international passenger traffic, measured in revenue passenger kilometers, by 12.3 percent in the first seven months of the year, according to the Association of Asia Pacific Airlines.

The carrier will break even and may post a small profit this year, Yang said. Sales in 2011 may rise between 30 percent and 40 percent, he said.

Hong Kong Air plans to start passenger and cargo flights to Taipei in November. The company is now negotiating for landing rights with Taiwan, Yang said.

To contact the reporter on this story: Wing-Gar Cheng in Hong Kong at wgcheng@bloomberg.net

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