Tag Archives: #malaysia

AirAsia X Launches USD$370 Million IPO

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Malaysian long-haul budget carrier AirAsia X launched an initial public offering on Monday with a value of up to USD$370 million, seeking funds for its fleet expansion as it targets buoyant travel demand in Asia-Pacific and looks to fend off regional rivals.

The carrier, which competes with Singapore Airlines’ Scoot and Qantas Airways’ Jetstar, has said it plans to add 13 Airbus A330 wide-bodied planes this year and next to take its fleet to 23 aircraft by 2014.

The expansion comes as passenger traffic in the Asia-Pacific region more than doubled between 1998 and 2012, putting air travel activity in the region on par with North America, according to figures from research firm Strategic Airport Planning, which were cited in AirAsia X’s preliminary IPO prospectus.

“The focus in on the sweet-spot flights of 4 to 8, or possibly 9 hours,” Tony Fernandes, AirAsia X’s founder, told reporters at the IPO launch. He added that AirAsia X plans to strengthen its position in its key markets in Australia and East Asia.

The company plans to use 33.3 percent of the proceeds to repay bank loans, with another 32.6 percent set for capital expenditure and 29.7 percent as general working capital.

AirAsia X’s chief executive, Azran Osman Rani, said the carrier’s expansion would come through more flights on existing routes as well as from new routes within some countries where it already operates.

The deal is scheduled to be priced on June 24, with the stock market debut set for July 10.

(Reuters)

AirAsia profit soars, bullish on outlook

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AIRASIA, Asia’s largest low-cost carrier by fleet size, says its fourth-quarter profit has jumped 168 per cent year-on-year amid increased passengers.
AirAsia said in a statement that net profit for the quarter ending December 31 stood at 350.65 million ringgit ($A111.42 million), up from 130.68 million ringgit in the same quarter the previous year thanks to “a seasonally strong quarter”.
Revenue for the quarter was a record 1.41 billion ringgit, up 10 per cent, as more people flew the airline, which increased its aircraft in Malaysia to more than 60.
“It has been another good quarter and overall a great year for AirAsia as we continue to defy the industry in terms of operational and financial performance,” said Malaysia AirAsia chief executive officer Aireen Omar.
For the full financial year, AirAsia recorded a 238 per cent jump in net profit to 1.88 billion ringgit despite a 1.0 per cent rise in the average fuel price this year.
Its 2012 revenue increased by 11 per cent to 5.0 billion ringgit.
Group chief executive officer Tony Fernandes was bullish about the year ahead as AirAsia expands its model – no frills and keeping operational costs low.
“The aviation landscape is constantly changing with high fuel prices and new competition, but through all these challenges AirAsia will continue to defend our leadership titles,” he said.
AirAsia has grown rapidly since Fernandes, a former record industry executive, bought the failing airline in 2001. It initially had only two aircraft in operation.
The group now has a total fleet of 120 A320s and has set up subsidiary budget carriers in Indonesia, the Philippines, Thailand and Japan.
The airline, one of the biggest customers for European aircraft maker Airbus, is expecting 360 more aircraft to be delivered by 2026.
Last week it announced a new airline joint venture with India’s Tata conglomerate.
www.theaustralian.com.au

Air Asia X unveils child-free zones

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A Malaysian airline has launched “quiet zones” on selected flights, where children under the age of 12 are not permitted to sit.

Air Asia X – the long-haul arm of no-frills carrier Air Asia – announced the initiative last year, but only installed the child-free zones this week. A new booking system allows passengers to reserve a seat, at no extra cost, in the designated area when booking through the airline’s website.

The policy means that youngsters are banned from rows 7-14 – the first seven economy class rows – on Airbus A330-300 flights to China, Taiwan, Japan, Korea, Australia and Nepal.

Passengers booking online can choose to sit in that section by paying the standard seat reservation fee of RM35-RM110. Any group containing a passenger younger than 12 will not be able to book these seats.

The zones also contain “special ambient lighting”, according to the Air Asia X website, providing a “more relaxing atmosphere”.

The new seating plan follows a move by rival Malaysian Airlines to ban children from the top deck of its Airbus A380 “superjumbo” aircraft.

A number of surveys have claimed that the majority of passengers find noisy children their biggest gripe when flying.

A poll of Telegraph Travel readers carried out last year found that nearly 70 per cent would support the introduction of child-free flights.

http://www.telegraph.co.uk/travel/travelnews/9851933/Budget-airline-unveils-child-free-zones.html