AK°/D7/FY/MH | Malaysia-Based Carriers

[szehoong]

AirAsia seen to grow 80% a year


BY C.S. TAN

BUDGET airline AirAsia will be able to grow its passenger numbers, fleet size and net earnings by about 80% a year over the next three years, an analyst says.

The airline, including 49%-owned Thai AirAsia, carried 2.8 million passengers in its financial year ended June 30 (FY04). Its passenger volume is expected to triple to 8.5 million in FY05 and to rise further to 13.5 million in FY06.

This extraordinary rate of growth is attributed to a boom in low-cost regional air travel. The buoyant business condition arises from rising incomes and affordable air travel in the region.

A high growth rate will lift valuations for AirAsia's initial public offering (IPO) exercise and, later, its share price. The company announced last week it received approval from the authorities for a listing on Bursa Malaysia. The airline will make a public issue of 700 million shares of 10 sen each. It is expected to disclose the offer price at an underwriting ceremony today.

In the past, the demand for air travel was largely determined by economic growth and income levels. This has changed in recent years, as global demand is now also being driven by budget prices. Low-cost carriers (LCCs) like AirAsia have provided this impetus for demand.

To cater for the increasing passenger traffic, AirAsia, together with ThaiAsia, is expected to expand its fleet from 18 aircraft presently to 54 by FY07.

The group's net profit is estimated at RM50mil in the current FY05. This is believed to be quite a close estimate as the group has hedged the bulk of its fuel requirements until the end of this financial year.

Going forward, the analyst forecasts AirAsia to be able to raise its earnings to RM300mil by FY07 if jet fuel prices drop from the current US$55 a barrel to around US$38, which he believes is a more sustainable price.

On the basis of a forecast of AirAsia's earnings for the 2005 calendar year and a price earnings multiple (PE) of 22 times, the airline would be worth RM4bil, he says. He used this rich PE to reflect the growth stage the company is in. The airline is expected to price its IPO to value the company at RM3bil, he adds.

It is a particular concern to some observers that a number of other budget airlines have emerged in the region. AirAsia will be able to hold its own, the analyst says, as it is believed to have the lowest cost structure among these LCCs. Hence, AirAsia is able to price its seats lower than those of these competitors.

[szehoong]

[huaiwei]

Published October 12, 2004

Malaysia's AirAsia to raise US$211m in IPO

KUALA LUMPUR - Malaysian low-cost airline AirAsia has unveiled plans to raise 800 million ringgit ( US$211 million) in an initial share offer to help fund a fleet expansion.

AirAsia wants to increase its fleet nearly fourfold and challenge Asia's established airlines on lucrative routes.

Chief Executive Tony Fernandes said the carrier, which started just about three years ago, would sell a total of 701 million new shares, 80 per cent going to institutions and the rest to retail investors.

Mr Fernandes has said the Kuala Lumpur-based AirAsia, which currently owns 22 planes, needs up to 80 more over the next four to eight years as it expands to more destinations across Asia.

The company's joint venture with Thailand's Shin Corp, called Thai AirAsia, plans to fly to Kunming, China starting December from Bangkok.

This would make AirAsia the first budget carrier to break into China's previously tightly controlled market.

On the proposed IPO, Mr Fernandes said the carrier would offer shares to retail investors at an indicative price of 1.40 ringgit a share.

Institutional investors normally pay a premium to the final retail price.

The IPO prospectus is to be issued this month and the shares are scheduled to list in November.

Since its launch, AirAsia has severely cut into flagship carrier Malaysia Airlines' business in the short-flight regional sector.

AirAsia carried 1.8 million passengers in 2003 and expects 3.2 million passengers this year, rising to 6 million in 2005.

AirAsia's planned listing will likely be a barometer of investor interest in aviation while the industry grapples with surging fuel prices and intense competition among airlines.

[David-80]

Some stealing infos from my friend that works in Airasia jakarta, next year Air Asia Indonesia will start to operate, consists of 14 Boeing 737s, the shares 50% owned by Sampoerna (a leading cigarretes comp) and the rest Airasia.

The routes are mainly domestic.

Airasia is now serving 5 cities in Indonesia. Jakarta, Surabaya, Bandung, Medan, Bali and soon padang in november.

cheers

[David-80]

AirAsia buys Indonesian airline: Report

KUALA LUMPUR (AFP): Malaysia's budget carrier AirAsia has acquired a private airline in Indonesia and will team up with a local partner to launch new flights to tap into Southeast Asia's most populous nation, a report said on Sunday.

AirAsia bought PT AWAir Internasional for a token two dollars, business weekly The Edge quoted sources as saying.

It plans to tie-up with an unidentified partner to launch a no-frills airline in a set-up similar to that of Thai AirAsia, where Thai media and telecommunications group Shin Corp. holds acontrolling 51 percent stake, the sources said.

AirAsia officials were not available for comment but the company's executive director Kamarudin Meranum last week told the New Straits Times daily that the airline was waiting for the Indonesian government to issue a license to allow it to set up a budget airline.

The Edge said AWAir began operations in June 2000 but suspended them two years later because of fierce competition from some 50 airlines now servicing domestic routes following the deregulation of the aviation sector.

It was unclear if AWAir has the rights to fly international routes but its start-up mirrored AirAsia's beginnings in Malaysia, when private firm Tune Air took over all of AirAsia's 40 million ringgit (US$10.5 million) in debts and two aircraft for a token one ringgit in 2001.

After revamping the airline into a low-cost model, AirAsia began making profits in seven months and now flies to 30 destinations in Malaysia and the region, including Singapore, Thailand, Indonesia and Macau. It hopes to fly to China by the year-end.

The carrier last week said it expected to raise some 800 million ringgit in next month's initial public offering, billed as Malaysia's largest listing this year, to fund the acquisition of 80 new aircraft.

For its financial year to June 2005, AirAsia expects net profit to surge threefold to 160 million ringgit on a turnover of 700 million ringgit, The Edge said. (**)

[babystan03]

Hmm...seem like Airasia's JB-KL route is rather popular......they've raised the regular fares to RM65.99 (RM84.99 including tax)..........

[babystan03]

20 October 2004

AirAsia eyes Australia with stake in Indonesian carrier
KUALA LUMPUR : Malaysia's budget carrier AirAsia has announced plans to fly to Australia with the acquisition of a private airline in Indonesia with the launch of its initial public offering (IPO).

Pahamin Rajab, AirAsia chairman, said Jakarta would be the hub for the latest budget carrier's joint-venture after it bought PT AWAir Internasional for a token two dollars.

"We will be flying domestic routes in Indonesia and beyond. Our planes will go to places with a flying time of three and a half hours. Australia is within that flying time," he told reporters.

In its prospectus, AirAsia forecast a net profit of sme 160 million ringgit (42.1 million US dollars) for the year to June 2005.

The airline, which is offering the public shares at 1.40 ringgit each or nearly 19 times its expected earnings per share of 7.47 sen (cents), will list November 22 after Malaysia's biggest IPO this year.

Pahamin said approvals from the Indonesian government were expected to be concluded by year-end. AirAsia would hold a 49 percent stake in the business and an Indonesian partner 51 percent.

It would be similar to that of Thai AirAsia, where Thai media and telecommunications group Shin Corp. holds a controlling 51 percent stake.

Tony Fernandes, chief executive officer, in a recorded message at the IPO launch, said the Indonesian carrier would begin service at the latest in early 2005.

"We hope the operation can start by the end of the year or early next year. It is a massive market," he said.

Highlighting AirAsia's growth prospects, Fernandes said AirAsia hopes to set up similar joint ventures in China and the Philippines.

"We are in negotiations with people in China and the Philippines," he said.

AirAsia currently flies to Macau, the former Portuguese colony in southern China, from Bangkok and is expected to launch more flights to the area and India.

AirAsia, which has a fleet of 24 Boeing 737 aircraft, currently operates 322 flights a week from Kuala Lumpur International Airport to 14 domestic and eight international destinations.

Rising oil prices do not seem to worry the carrier, which said it has hedged its needs up to next June.

"We have come a long way, we do not have any specific fear," Fernandes said.

AirAsia said it had hedged fuel at 42 dollars per barrel for the six months to December and at 36.96 dollars for the second half to June 2005.

Kamarudin Meranum, executive director, told AFP that the low cost carrier does not plan to impose fuel surcharge.

"We will try to avoid that," he said while Pahamin noted the carrier would try to expand load factors and increase revenue.

AirAsia's IPO involves some 700 million shares, of which 583.76 million are new and 116.75 million are existing shares offered by its major shareholders.

The public portion of the IPO comprises 140.1 million shares, tentatively priced at 1.40 ringgit a share, while the institutional portion of 560.41 million shares will be price through a book-building exercise.

Based on the indicative price of 1.40 ringgit each, Air Asia said it will raise gross proceeds of 864.01 million ringgit.

AirAsia plans to use the funds from the IPO to increase its fleet to 80 aircraft with Boeing and Airbus competing for the business.

Kamarudin said AirAsia had conducted a preliminary study on both and a decision could be made early 2005 after it receives a formal proposal from the two manufacturers. - AFP

Copyright © 2004 Agence France Presse. All rights reserved.

[David-80]

Damn, you beat me to it ! I was about to post that news

Anyway, good news, I thought the HUB will be Bali, since Australian visited Bali very often, but this is maybe because next year Jakarta will build terminal 4 for budget carrier.

cheers

[babystan03]

Business Times - 28 Oct 2004

Oil, competition could hit AirAsia shares

By VEN SREENIVASAN

SHARES of Malaysian low-cost carrier AirAsia could be weighed down by sky-high fuel prices and the abundance of cut-throat competition, players say.

Analysts in Kuala Lumpur have pegged the 12-month price target for AirAsia's shares at between RM1.40 and RM1.48 - barely 6 per cent above the indicative bookbuilding offer price of RM1.40.

Mayban Securities has a target of RM1.48 for the stock, while OSK Research sees it at RM1.40 to RM1.48. Most other brokers are within this range.

New Straits Times yesterday quoted Malaysian brokers as saying at the indicative retail offer price, the shares are fairly valued.

'For 2006, based on the offer price of RM1.40, Air Asia's shares are being offered at a 2006 price-earnings ratio of 16.2 times, based on fully-diluted EPS of 8.7 sen,' Mayban Securities said in a research note. 'The valuations are also relatively in line with regional peers, which are currently trading at a prospective 2006 PER of 15.1 times.'

AirAsia is offering 700.5 million ordinary shares of 10 sen each, of which 116.8 million are set aside for the public and 560.4 million have been offered to institutional investors in a bookbuilding exercise. The rest have been distributed to directors and business associates. The bookrunners for the institutional offering are RHB Sakura Merchant Bankers, Credit Suisse First Boston (Hong Kong) and ECM Libra Securities. The offer closes today.

The carrier was founded by Tony Fernandes, whose Tune Air took over Air Asia's debts of RM40 million and two aircraft for a token RM1 in 2001. Since then, the company has grown rapidly. It now has 24 aircraft doing 322 flights a week from Kuala Lumpur International Airport to 14 domestic and eight international destinations.

The IPO will see Tune Air's stake fall to 44.8 per cent from 64.6 per cent, while other major shareholders will collectively own 14.8 per cent.

But the big concern for most analysts is rising fuel costs. AirAsia has projected net earnings of RM159.9 million (S$70.4 million) for its financial year ending June 2005 - but this projection is based on oil prices of US$51 per barrel and US$45 per barrel for the six months to December 2004 and June 2005 respectively. The oil price has soared 63 per cent this year and now stands at a record US$62 a barrel. Fuel now accounts for more than 40 per cent of AirAsia's total costs, up from about 30 per cent earlier this year.

'It's tough to see how they are going to meet the estimates at the rate fuel prices are rising,' said Shukor Yusoff of S&P MarketScope.

Mr Fernandes has previously said the airline is 80 per cent hedged - though he did not say at what price.

There is also concern that after enjoying a strong run in the past two years, AirAsia is now up against strong competitors with deep pockets such as Singapore Airlines associate Tiger Airways and Qantas associate Jetstar Asia.

Copyright © 2004 Singapore Press Holdings Ltd. All rights reserved.

[babystan03]

November 01, 2004

AirAsia may have to trim fleet plans

IPO proceeds fell far short of target: analysts

KUALA LUMPUR - AirAsia's expansion plans may be hindered after the discount carrier failed to raise as much money as it had sought in an initial share sale, fund managers said.

AirAsia raised RM863 million (S$377.8 million) in its share sale last week, less than its RM1 billion target. Institutional investors paid RM1.25 a share, the company said in a statement after the market closed last Friday. Individuals bought the shares at RM1.16 each.

"They may have to readjust their plane leases," said Mr Raymond Tang, who helps to manage the equivalent of US$1.1 billion (S$1.8 billion) as chief investment officer at Commerce Asset Fund Managers in Kuala Lumpur. "It might hinder plans to buy planes."

AirAsia executive director Kamarudin Meranun declined to comment.

AirAsia was trying to tap investors for funds as record oil prices have been driving the costs of jet fuel higher and at a time when as many as nine discount airlines plan to start operations. AirAsia wants to expand its fleet and add regional hubs in Indonesia and China.

AirAsia, which needs more, and more efficient, aircraft to help save on fuel costs, plans to buy 12 aircraft from Boeing Co, increasing its fleet to 36 by June and then adding as many as 80 planes starting the following year.

"It might put them back two or three planes, but if you're talking about 20 or 30, it's just a small amount," said Mr Teoh Kok Lin, managing director of Singular Asset Management Sdn.

The airline sold 700.5 million shares, around a third of its enlarged share capital, and is scheduled to list on the main board of Malaysia's Exchange on Nov 22.

"We still got a price-to-earnings ratio of 18.5, higher than any other low-cost carrier," chief executive Tony Fernandes said in a telephone text message earlier.

He could not be reached yesterday to comment on whether the smaller-than-planned share sale would affect expansion plans.

The carrier said on Oct 20 in its sale document that oil prices will rise to around 43 per cent of its operating expenses in its fiscal year ending June, 2005, from around a third of costs during its first three years of operation.

"They may have less available cash in hand now, but it should be enough to buy the planes they need," said Mr Chong Sui San, who helps to manage the equivalent of US$368 million at Allianz General Insurance Malaysia Bhd. - Bloomberg

Copyright © Singapore Press Holdings, 2004. All rights reserved.

[babystan03]

03 November 2004
Malaysian budget carrier AirAsia's expansion plan on track: official

KUALA LUMPUR : Malaysian budget carrier AirAsia's plan to acquire some 80 new aircraft is on track despite its initial public offering (IPO) raising less funds than first indicated, a senior official said Wednesday.

AirAsia set the price for the institutional tranche of its IPO at RM1.25 per share and the retail tranche at RM1.16, well below the indicative price of RM1.40.

AirAsia Executive Director Kamarudin Meranum told AFP that the issue price for the institutional and retail tranches was "more than enough to fulfill our expansion plan and to build up our war chest.

"The board believes that the minimum value of the company is 1.20 ringgit (per share), in line with the IPO price," he said, when asked to comment on fears that the carrier's expansion plans may suffer.

AirAsia said previously that it planned to use the funds from the IPO to increase its fleet to 80 aircraft.

It currently operates a fleet of 24 Boeing 737 aircraft on some 322 flights a week from Kuala Lumpur International Airport to 14 domestic and eight international destinations.

Analysts had expressed some concern that the lower than expected price for the IPO could have hurt the fleet expansion plan but Kamarudin said AirAsia only needed a minimum of RM1.20 to meet its financing needs.

"If we had put the indicative price lower than 1.40 ringgit, it may have been lower (still) so we put it at 1.40 and we got 1.20. We are happy. Our wings are intact. There is no need to reschedule anything," he said.

Kamarudin said the carrier was happy with the strong response to the IPO and the investor profile.

The institutional tranche was 3.5 times subscribed and the public tranche, the largest ever for a Malaysian IPO, was 1.5 times subscribed, with the IPO raising some RM717.4 million.

The stock will list on November 22.

Asked about the planned acquisition of an Indonesian carrier, Kamarudin: "I am flying to Jakarta today. The plan is on track. We hope to conclude the deal by year-end or the latest in the new year." - AFP

Copyright © 2004 Agence France Presse. All rights reserved.

[babystan03]

Time is GMT + 8 hours
Posted: 07 November 2004 2349 hrs

AirAsia plane skids off runway at Kota Kinabalu airport
KOTA KINABALU, Malaysia : A Boeing 737 plane owned by budget airline, AirAsia, with 111 passengers and five crew members on board, skidded while landing on Sunday, forcing the Kota Kinabalu International Airport (KKIA) to be closed temporarily.

Department of Civil Aviation Director-General Kok Soo Choon confirmed that the incident took place at about 5.50pm during heavy rain.

"So far, no passenger was reported injured...everyone is safe, but we have to close the runway temporarily," he told Bernama news agency.

Following the temporary closure, five flights scheduled for take-off were cancelled while five in-coming flights from Kuala Lumpur were diverted to Sandakan Airport.

In Kuala Lumpur, AirAsia said due to heavy rain and bad weather, its aircraft bound for Kota Kinabalu from Kuala Lumpur skidded slightly off the runway after it touched down at Terminal Two of the KKIA.

"While evacuating the aircraft, two of the passengers sustained minor injuries. AirAsia's staff responded instantly to send the passengers for immediate medical attention," it said.

AirAsia said all other passengers were fine.

Flight AK104 had 110 passengers, one infant and five crew members on board. - CNA

Copyright © 2004 MCN International Pte Ltd

[huaiwei]

Posted: 15 December 2004 1550 hrs

AirAsia to buy 40 Airbus jets in blow to Boeing: source

KUALA LUMPUR : Malaysian budget carrier AirAsia has opted to buy 40 A320 jets from Europe's Airbus and will phase out its current Boeing fleet, an industry official said Wednesday, a decision seen as a major setback for the US aerospace giant in the burgeoning Asian low-cost airline market.

"Yes, AirAsia has picked Airbus. It will buy 40 jets. The contract will be inked on Friday," the industry source familiar with the deal told AFP.

AirAsia officials declined to comment.

Asked why rival Boeing lost the deal, the industry insider said: "In terms of price and technical specifications, Airbus is better."

"All the current Boeing aircraft with AirAsia will either be phased out or sold," the source added.

AirAsia, the region's largest low-cost carrier, currently operates a fleet of 26 Boeing 737 aircraft.

Boeing officials have acknowledged that capturing the contract was critical for them to regain sales momentum in the market.

The source declined to reveal the cost of the 40-jet deal, saying only: "They are getting it cheaply."

The order would be valued at US$5.2 billion at the catalog price but AirAsia was likely to receive significant discounts, the Wall Street Journal said in a report on the negotiations last month.

Quoting people familiar with the offer, the newspaper said the A320 jetliners were priced well below Boeing's.

The industry source told AFP the first aircraft would arrive in early 2006, followed by one jet each month.

Australia-based managing director for the Centre for Asia-Pacific Aviation, Peter Harbison, told AFP that AirAsia's decision to pick Airbus was bad news for Boeing.

"It is not good news for the US manufacturer since the current fleet consists of Boeing. Five years ago, Airbus was invisible over Asian skies. It is now becoming dominant," he said.

Harbison attributed Airbus's success to better pricing and the ability to meet demand.

"Part of the problem for Boeing is being not able to produce aircraft. After (the terror attack on the US on) September 11, local carriers were not placing new orders and Boeing downsized its labour force.

"Now there is a surge in demand from low-cost carriers and Airbus is in a stronger position to produce. They are also aggressive in pricing," he said.

Harbison said with the new order, AirAsia would have the youngest fleet in Asia, putting the carrier "well ahead of anyone else."

AirAsia has set its sights on a fleet of 80 aircraft and is expected later to take an option to buy or lease 40 more Airbuses.

The three-year old no-frills carrier has expanded from a two-jet operation to become Asia's leading economy airline, carrying 7.5 million passengers since its launch in December 2001.

It operates 322 flights a week from Kuala Lumpur International Airport to 14 domestic and eight international destinations, and plans a major regional expansion programme.

AirAsia became the first budget carrier to be listed in Southeast Asia in November, when its initial public offering (IPO) was snapped up by investors. - AFP

[forrestcat]

Transfer of local routes may lead to massive tourist cancellations

By STEPHEN THEN



MIRI: The handover of 99 local routes to AirAsia by Malaysia Airlines from Aug 1 has put many travel agents here in a bind as up to 18,000 foreign tourists, who have confirmed their trip to the Mulu National Park, are threatening to cancel their bookings.

The tourists want confirmed air tickets but local agents here, the gateway to Mulu, are unable to do so because MAS

has instructed them to cancel their bookings as the national carrier was handing over its rural flight services to AirAsia.

However, AirAsia will only be able to handle bookings on July 1 at the earliest, provided the new airline it had contracted to operate the rural air services gets the regulatory approval.

If the Mulu-bound tourists cancel their bookings, the country stands to lose more than RM34mil in foreign exchange. Each tourist to Malaysia is estimated to spend about RM1,900 per trip per person.

The travel agents here convened an emergency meeting with Sarawak Tourism Board (STB) chief executive officer Gracie Geikie, seeking the board's help to avert what could be a blow to the state's tourism industry.

Tourists, about 80% of them foreigners, had given notices to travel agents, saying that they would have to cancel their bookings if the agents could not issue them confirmed flight tickets soon.

“STB has contacted AirAsia's management and was informed that the budget airline is still in the process of working out the arrangements.

“These tourists cannot wait because they are long-haul passengers and they need to confirm their travel plan months ahead,” said Geikie after the meeting.

She said the STB had highlighted the problem to the state government and the two airlines,

“We are not just talking about Mulu. These foreigners coming to Mulu will come through KLIA or Kuching or Kota Kinabalu, and then fly from Miri to Mulu. They usually will visit other destinations in Malaysia before or after they come to Mulu,” she said.

Another popular eco-tourism spot that could be affected by the same problem is the Danum Valley in Sabah as the flight to Lahad Datu from Kota Kinabalu will also be handed over to AirAsia.

Besides the Danum Valley, Lahad Datu is also the gateway to the Tabin Wildlife Reserve, which is home to the Borneo pigmy elephant, Sumatran rhinoceros and orang-utan. It is also a popular tourist destination.

An AirAsia spokesman appealed to all tour operators and travel agents to hold on to their bookings.

She said AirAsia had announced that it had subcontracted the rural air service to a new airline – Fly Asian Xpress (FAX) and was now obtaining regulatory approval to commence operations on Aug 1.

“The decision by MAS to close these bookings at such short notice before the new airline is ready to begin sales has affected many parties.

“There will be minimal changes to the new flight schedules for pending bookings for the rural air services,” she said, adding that tourists with confirmed bookings must not cancel their bookings but wait until July 1 so that FAX can open its seats for sale.

MAS said the airline needed to give early notice to travel agents so that the passengers could make alternative plans as the change of routes affected the whole country.

From Aug 1, MAS will only fly to 19 local destinations deemed trunk routes while AirAsia will fly to 99 others, including Mulu.

“All bookings for travel on the 99 non-trunk domestic routes on and after Aug 1 will be cancelled,” MAS said, adding that the airline's Mulu, Limbang and Lahad Datu stations would also be closed.

As at mid-May, 33,280 bookings have been made and a total of 13,085 tickets have been issued on these non-trunk routes for travel beyond Aug 1.

FLORENCE A. SAMY reports that Deputy Tourism Minister Datuk Donald Lim has assured that foreign tourists would get flight tickets to local destinations during the transition period.

Lim said the Government would ensure that tourists would not be left in the lurch during the transition and would come up with a solution soon.

“Even if these tourists can't get online flight tickets during the transition, we will make sure they get paper tickets so that they can fly here,” he said.


http://thestar.com.my/news/story.asp...nation&focus=1

[nazrey]

Malaysian Stocks Rise; AirAsia Gains, Rashid Hussain Declines
12-06-2006
Bloomberg
By Nurul Darni


June 12 (Bloomberg) -- Malaysian stocks rose, snapping a four-day slide. AirAsia Bhd., Southeast Asia's biggest discount carrier, gained after a newspaper reported that the company is raising funds to buy new aircraft.

Rashid Hussain Bhd., which controls the nation's No. 4 lender, RHB Capital Bhd., dropped after the Edge weekly reported Eon Capital Bhd. is considering a merger with the group.

The Kuala Lumpur Composite Index rose 2.23, or 0.2 percent, to 917.63 at 10:30 a.m. local time, set to halt a four-day, 1.8 percent loss. The Second Board Index of smaller companies slid 0.2 percent to 89.77, while the all-share Emas index added 0.1 percent to 210.74.

AirAsia gained 3 sen, or 2 percent, to 1.53 ringgit. The carrier plans to sell bonds or obtain loans to finance the purchase of 27 Airbus A320 aircraft, the Business Times reported, citing AirAsia Deputy Chief Executive Kamarudin Meranun. The planes will cost about $1 billion, the report said, attributing the figure to ``officials'' it didn't identify.

Rashid Hussain slid 0.5 sen, or 0.6 percent, to 87 sen. Eon Capital, the nation's seventh-largest lender, is looking at a possible merger with Rashid Hussain, the Edge weekly reported, citing people it didn't name.

An application to Bank Negara Malaysia, the central bank, to start negotiations between EON and Rashid Hussain will be submitted ``soon,'' the report said.

RHB Capital dropped 1 sen, or 0.4 percent, to 2.66 ringgit, while Eon Capital slipped 5 sen, or 0.8 percent, to 5.85 ringgit.

[nazrey]

AirAsia launches latest hub in KK
Updated : 07-07-2006
Media : The Star


KOTA KINABALU: Malaysia's low-cost carrier AirAsia has launched its latest hub here.

The hub, scheduled to be fully operational on Tuesday, is expected to see direct flights from Sabah's capital to Tawau and Miri. AirAsia hopes to include Kuching and Sandakan as soon as possible.

AirAsia chairman Datuk Pahimin A. Rejab predicted an increase in air travel between Sabah and Sarawak as well as to Asean countries once the airline launches its second hub in the region next month in Kuching.

Chief Minister Datuk Musa Aman, who launched the Kota Kinabalu hub yesterday, said the airline could play a major role in promoting tourism in Sabah, which recorded some 701,000 visitor arrivals, including 286,000 foreign tourists, up to May.

Sabah stands to gain with more direct flights from international and domestic destinations, he added.

Bookings for daily AirAsia direct flights from Kota Kinabalu to Miri and Tawau can be made online as well as through other distribution channels.

[David-80]

Btw, their 24 planes (737-300s) will move to AWAIR (Air Asia Indonesia) because some small airports here cant support Airbus.

cheers

[babystan03]

I wonder whats the technical superiority of A320 over B737??

[ZuluKingOfTheDwarfPeople]

Originally Posted by babystan03

I wonder whats the technical superiority of A320 over B737??

There is none. As the article said, Airbus won on price.

[babystan03]

Business Times - 23 Dec 2004

AirAsia records US$2.7 million profit in first quarter

KUALA LUMPUR - Malaysia's budget airline AirAsia has posted a net profit of US$2.7 million for the first quarter of its financial year.

The airline said its revenue totalled US$32.6 million during the first quarter, which ended Sept 30.

AirAsia -the region's biggest budget carrier-did not provide comparative figures because it just listed on the bourse in November.

The airline said it expects its financial performance for the year ending June 30 to be 'satisfactory.'

For the year ending June 2005, AirAsia expects net profit to reach US$42 million.

AirAsia, which currently serves routes in Malaysia, Indonesia and Thailand, carried 1.8 million passengers in 2003, and an estimated 3.2 million passengers this year.

It expects passenger numbers to rise to 6 million in 2005.

AirAsia is aggressively pursuing expansion plans and has signed a deal to buy 40 Airbus A320 passenger jets.

Copyright © 2004 Singapore Press Holdings Ltd. All rights reserved.