From Barron's 4/2/07 "Qantas may provide the whole industry with a little lift. If it works out, a private-equity bid to buy Australia's marque airliner could bring more rationality to pricing. "Qantas' LBO (leveraged buyout) is likely to create more sensible competition as new private owners are unlikely to pursue aggressive fare discounting to gain market share," says analyst Chin Lim of Morgan Stanley. The Chinese airlines have been particularly aggressive price-cutters."

From Barron's 4/2/07 Rising Asian currencies against the U.S. dollar also help because major costs, notably fuel, spare parts and aircraft leases, are denominated in dollars. China Eastern (CEA), which has lots of dollar debt, should reap a windfall from the currency's decline, says UBS.

From Barron's 4/2/07 "Among UBS' picks are Singapore Airlines, which it projects will earn 1.64 Singapore dollars (US$1.08) in 2007, up from S$1.02 in 2006. The shares closed Friday at S$16.60 and UBS has a target of S$22 for them."

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