SPRING Airlines Co. has seen its share price more than double within just six days of listing on the Shanghai Stock Exchange, making it Asia’s most valuable budget carrier.

    The firm’s shares gained the daily limit of 10 percent each day since hitting the debut maximum of 44 percent Jan. 21. That made it worth 15.29 billion yuan (US$2.45 billion), pushing Malaysian low-cost carrier AirAsia Bhd into second place with a market capitalization of US$2.13 billion.

    The shares, which closed yesterday at 42.13 yuan (US$7), are now more expensive than those of Air China Ltd., with a price-to-earnings ratio of 14.94 versus the flag carrier’s 13.22.

    “I am not that surprised by its share price performance as it’s the only listed low-cost carrier” in China, said analyst Yu Nan at Haitong Securities. “A few other new listed companies were also popular in the first few days’ trading.”

    Spring Air has managed to undercut its larger State-owned rivals with stringent cost control and a no-frills approach.

    “We are not that surprised [by the share price rise] because our financial figures are above the industry’s average,” Spring Air’s chief financial officer Chen Ke said.

    Spring Air filled more planes more often last year than domestic rivals, reporting China’s highest average passenger load factor of 95 percent. The airline has also been profitable since its first full year of operation in 2006.

    AirAsia’s shares have been affected by the crash last month of an aircraft operated by an Indonesian affiliate.

    (SD-Agencies)