Introducing the BAASA Index – The World’s First Airline Stock Index

As the post title indicates, we’d like to introduce the Bangalore Aviation Airline Stock Average (BAASA), by our count, the first officially defined Airline Stock Index. The goal of this creation is to provide a measure of global airline financial performance, and investor sentiment about the global airline industry.

In creating the index, we first picked a representative sample of 30 airlines from around the world, which are shown below broken down by region.

Asia-Pacific: Jet Airways, Korean Air, Singapore Airlines, China Southern, ANA, Korean Air, AirAsia, Qantas, Cathay Pacific

North America: United, Delta, Southwest, US Airways, jetBlue, WestJet, Air Canada, Allegiant

Europe: International Airlines Group (British Airways/Iberia), Lufthansa, Air France-KLM, Ryanair, EasyJet, Turkish Airlines, AirBerlin, Norwegian Air Shuttle

Middle East: Air Arabia

Africa: Kenya Airways

Latin America: Copa Airlines, LAN Airlines (will be replaced with LATAM once the merger is completed), Aeromexico.

The breakdown of carriers by region were taken from IATA’s breakdown of global ASKs (i.e if 30% of global ASKs occur in Asia, then Asia would be represented by 9 airlines in the index)

The BAASA Index will have a starting value of 3,000 points – the stock price of each airline on May 28th is initialized to 100 points (to normalize the different values of different currencies. Each week, we will review the change in the stock price, and then recalculate the new BAASA point value (i.e if the stock price increases 12% over a week, the new value of that airline’s stock in the BAASA index becomes 112).

That being said, here are the initial values used for the BAASA index.

Asia-Pacific 5/28/2012 Lookup
Jet Airways 317.55 JET.NS
Singapore Airlines 7.99 SINGF.PK
China Southern 21.09 ZNH.N
ANA 208 9202.T
Korean Air 45,300 003490.KS
AirAsia 3.54 AIRA.KL
Qantas 1.5 QAN.AX
Cathay Pacific 11.98 0293.HK
North America
United 23.57 UAL
Delta 11.37 DAL
Southwest 8.76 LUV
US Airways 12.3 LCC
jetBlue 4.75 JBLU
WestJet 15.47 WJA.TO
Air Canada 0.86 ACA.TO
Allegiant 64.04 ALGT
IAG(British Airways/Iberia) 137.1 IAG.L 
Lufthansa Group 10.53 DLAKF.PK
Air France- KLM 3.48 AIRF.PA
Ryanair  30.62 RYAAY.O
EasyJet 495 EZJ.L
Turkish Airlines 2.56 THYAO.IS
AirBerlin 1.8 AB1.DE
Norwegian Air Shuttle 92 NWC.OL
Middle East
Air Arabia 0.583 AIRARABI.DFM
Kenya Airways 15 KQNA.NR
Latin America
Copa Airlines 83.85 CPA
LAN Airlines 23.97 LFL
Aeromexico 20.42 AEROMEX.MX

About Vinay Bhaskara

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