AirAsia X eyes listing in late 2011

AirAsia Group is moving towards having separate public-listed entities that give investors choices to invest based on geography and business model foci, rather than consolidating all businesses into a single investment entity.

Investors can also choose to invest in the countries where AirAsia is based, including Malaysia, Thailand and Indonesia, and in the short-haul or long-haul business model.

AirAsia Berhad Group Chief Executive Officer Dato’ Sri Tony Fernandes said, “After more than two years of operation, we have begun to notice some dilution of the AirAsia business model and recognise the need for AirAsia and AirAsia X to remain focused on their respective markets. This arrangement gives AirAsia X financial independence and the latitude to develop its own marketing strategy. While it continues to capitalise the strength of the AirAsia brand, website and culture, this separation gives more focus and discipline to AirAsia X’s model.”

AirAsia X, launched in November 2007, achieved audited revenues of RM 720 million in 2009 and is projected to exceed RM 1 billion revenue in 2010.

AirAsia X, the Malaysian long-haul budget airline, is eyeing a public listing in the second half of 2011, subject to market conditions. It is completing a RM 100 million rights issue exercise to achieve financial independence and fund its continued growth. AirAsia is growing aircraft fleet by 37.5 per cent to 11 aircraft and expanding route network in Asia, including India, Korea and Japan, by the year-end.

Organisationally, AirAsia X will take over employment of its own wide-body pilots, cabin crew and ground staff as well as its commercial and marketing team. This will enable AirAsia X to pursue its commercial strategy and better develop capabilities in long-haul services.

The new model is expected to allow both AirAsia Berhad and AirAsia X to pursue a clearer and more focused business strategy, attract relevant investor profiles and still achieve the competitive advantage of having common-branded short-haul and long-haul networks strategically feeding each other.