Airlines

Airlines: Ash cloud from Chile's volcano has crossed the southern Atlantic Ocean, and reached Australia and New Zealand, prompting Qantas and Air NZ to ground some international and domestic flights. Qantas offshoot Jetstar has also cancelled 64 flights to and from the region. Authorities say NZ airspace might be affected for at least a wk. Efforts are being made to reroute flights and alter altitudes to avoid the plumes.

SIA: operates a daily flight between Spore and Christchurch, and 21 weekly return flights between Spore and Melbourne. SIA’s website updated 11 Jun says all flights to and from the region remains operational.

Tiger Airways operates domestic flights within Australia, with hubs in Melbourne and Adelaide. Co says flights will remain cancelled at least until 1300hrs AEST (11am Spore time)...

CIMB notes that depending on the period of service disruption, Tiger Australia could face losses of up to $6.5m per week. However house notes positive long-term prospects still in place. Believes negatives are being slowly priced in and upcoming catalyst is the successful implementation of a second base in Asia. Upgrades Tiger from underperform to Neutral with T P$1.40. Tiger currently trades at 16X P/E, other houses are largely negative with TP ranging $1.30 - 1.60.