AirAsia, the region’s biggest discount carrier, said it may add only one
more major hub for expansion as it focuses on boosting profits from
Malaysia, Thailand and Indonesia in the next three years.
AirAsia aims to increase annual profit from its three main markets to 1 billion ringgit ($327 million) each, group chief executive Tony Fernandes said in Kuala Lumpur on Thursday. Taiwan, South Korea, Vietnam and India are among the potential markets for a new base, he said.
“We have three gold mines in Malaysia, Thailand and Indonesia and I really want to capitalize on those three first,” Fernandes said. “I’m beginning to feel that I’d rather focus on these. On top of that, I still have energy for another biggie and maybe a few small ones in Laos, Cambodia and Myanmar.”
Negotiations with Airbus SAS for ordering 100 more A320s may be completed by the end of next month, Fernandes said, as the carrier expands operations to fend off rising competition.
Malindo Airways, a venture backed by Indonesia’s Lion Mentari Airlines, is set to start low-cost flights in Malaysia next year as the region’s economic growth spurs travel demand.
“The accelerated roll out of aircraft in Malaysia to dominate routes ahead of the start up of Malindo Airways in March 2013 is a good defensive measure,” Annuar Aziz, an analyst at Credit Suisse Group, wrote in a report on Wednesday. “Coupled with its strong branding, we expect AirAsia to withstand the challenge.”
AirAsia, which also operates ventures in the Philippines and Japan, closed unchanged at 2.85 ringgit in Kuala Lumpur trading on Thursday, after posting its third-straight increase in quarterly profit on Wednesday. The stock has fallen 23 percent this year, compared with a 5.5 percent advance in the benchmark FTSE Bursa Malaysia KLCI Index.
Net income increased 3.6 percent to 157.8 million ringgit in the three months ended September from 152.3 million ringgit a year earlier, the Sepang, Malaysia-based carrier said in a statement on Wednesday after trading hours. Revenue rose 15 percent to 1.24 billion ringgit.
Thai AirAsia posted a profit of 199 million baht ($6.5 million) in the quarter while the Indonesian venture had net income of Rp 74.5 billion ($7.7 million), the company said in the statement.
AirAsia’s main Malaysian unit carried 9 percent more passengers and expanded capacity 10 percent.
The group, which currently has a fleet of 112 A320s, plans to take delivery of 266 more planes by 2026. It will add 11 more A320s this quarter, according to the statement.
Bloomberg
AirAsia aims to increase annual profit from its three main markets to 1 billion ringgit ($327 million) each, group chief executive Tony Fernandes said in Kuala Lumpur on Thursday. Taiwan, South Korea, Vietnam and India are among the potential markets for a new base, he said.
“We have three gold mines in Malaysia, Thailand and Indonesia and I really want to capitalize on those three first,” Fernandes said. “I’m beginning to feel that I’d rather focus on these. On top of that, I still have energy for another biggie and maybe a few small ones in Laos, Cambodia and Myanmar.”
Negotiations with Airbus SAS for ordering 100 more A320s may be completed by the end of next month, Fernandes said, as the carrier expands operations to fend off rising competition.
Malindo Airways, a venture backed by Indonesia’s Lion Mentari Airlines, is set to start low-cost flights in Malaysia next year as the region’s economic growth spurs travel demand.
“The accelerated roll out of aircraft in Malaysia to dominate routes ahead of the start up of Malindo Airways in March 2013 is a good defensive measure,” Annuar Aziz, an analyst at Credit Suisse Group, wrote in a report on Wednesday. “Coupled with its strong branding, we expect AirAsia to withstand the challenge.”
AirAsia, which also operates ventures in the Philippines and Japan, closed unchanged at 2.85 ringgit in Kuala Lumpur trading on Thursday, after posting its third-straight increase in quarterly profit on Wednesday. The stock has fallen 23 percent this year, compared with a 5.5 percent advance in the benchmark FTSE Bursa Malaysia KLCI Index.
Net income increased 3.6 percent to 157.8 million ringgit in the three months ended September from 152.3 million ringgit a year earlier, the Sepang, Malaysia-based carrier said in a statement on Wednesday after trading hours. Revenue rose 15 percent to 1.24 billion ringgit.
Thai AirAsia posted a profit of 199 million baht ($6.5 million) in the quarter while the Indonesian venture had net income of Rp 74.5 billion ($7.7 million), the company said in the statement.
AirAsia’s main Malaysian unit carried 9 percent more passengers and expanded capacity 10 percent.
The group, which currently has a fleet of 112 A320s, plans to take delivery of 266 more planes by 2026. It will add 11 more A320s this quarter, according to the statement.
Bloomberg
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