Wednesday, September 14, 2011

Airline stocks advance in early trade

KUALA LUMPUR: Shares of AIRASIA BHD [] and MALAYSIAN AIRLINE SYSTEM BHD [] advanced in early trade on Wednesday, Sept 14 following the airlines inking a reported multi-million sponsorship deal with Barclays Premier League outfit Queens Park Rangers (QPR).

At 9.35am, AirAsia gained five sen to RM3.48 with 812,900 shares done while MAS added three sen to RM1.48 with 147,700 shares traded.

AirAsia on Monday said it had secured the rights to have its name on QPR's away kit under a two-year, ''500,000 deal to be formalised by Sept 30.

The low cost carrier said that under the sponsorship deal, among the terms are that it would carry the designation 'Official Partner of QPR' for advertising and promotional purposes; the rights to advertise at the QPR Loftus Road Stadium on match days; home and away game tickets and hospitality benefits; and access rights, including to QPR Loftus Road stadium and training ground for promotional purposes, squad photo shoot sessions and signed QPR merchandise.

On the rational for the sponsorship agreement, AirAsia said it included brand elevation; consumer engagement and brand loyalty; branding rights and merchandising; and added public relations exposure.

Tan Sri Tony Fernandes and Datuk Kamarudin Meranun collectively own a 75% shareholding in Tune QPR Sdn Bhd, which in turn owns a 66.02% shareholding in QPR Holdings Ltd.

Fernandes is also currently the chairman of QPR.

Meanwhile, MAS has not made any announcements to Bursa Malaysia as yet on the deal but reports have put the deal close to RM18 million.

MAS is the sponsor for QPR's home jersey kit.


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