Malaysia’s AirAsia has unveiled plans to launch a new domestic airline in India by the fourth quarter of 2013. Under the terms of a deal announced on February 21, the largest low-fare carrier in Asia will hold a 49-percent stake–the maximum holding permitted by the Indian government for a foreign investor–in the new airline. AirAsia is partnering with major Indian industrial groups Tata (to carry a 30-percent stake) and Telestra Tradeplace (21 percent).
AirAsia X, the Malaysian budget long-haul affiliate of Air Asia, is consolidating business in its core markets of China, Australia, Japan and Korea, according to CEO Azran Osman-Rani, who was speaking to AIN at the Low Cost Airlines World conference in Singapore last week.
Even as Asia Pacific airlines survived a testing 2011, overcapacity as a result of increased fleet orders is still concerning investors, who are already less willing to finance procurements in the current debt-laden environment. This was the message from Sydney-based thinktank the Center for Asia Pacific Aviation (CAPA) at the Low Cost Airlines Asia summit in Singapore last week.
Even as Asia Pacific airlines survived a testing 2011, overcapacity as a result of increased fleet orders is still concerning investors, who are already less willing to finance procurements in the current debt-laden environment. This was the message from Sydney-based thinktank, the Center for Asia Pacific Aviation (CAPA) at the Low Cost Airlines Asia summit here in Singapore last week.
AirAsia X, long-haul subsidiary of Malaysia’s AirAsia, the largest Asian budget carrier, plans to withdraw 11 weekly services to Mumbai and Delhi in India and 10 weeklies to its only European destinations—Paris and London—from its Kuala Lumpur hub.
Asian air transport rebel Tony Fernandes, chief executive of low-cost pioneer AirAsia, will soon join the industry establishment, assuming his planned acquisition of a 20.5-percent stake in failing flag carrier Malaysian Airline System (MAS) proceeds. Last week, his Tune Group agreed to become a significant minority shareholder in MAS in return for Malaysia’s sovereign wealth fund Khazanah Nasional taking a 10-percent holding in AirAsia.
Budget long-haul airline AirAsia X is eyeing a stock market listing and fleet expansion to spread its wings across the globe. The Malaysia-based carrier’s chief executive, Azran Osman Rani, has been in talks with institutional investors about a flotation in the next year or two to fund growth.
If Airbus COO customers and chief commercial officer John Leahy ever met a paying customer he didn’t like, it certainly wasn’t one of the world’s big aircraft lessors, whose strong balance sheets look all the stronger at a time soaring fuel costs eat away at profits of the world’s airlines.
Airbus followed Monday’s spectacular order flourish with a strategically important pair of contracts for members of its A330 family.