AirAsia announced (15-Jan-2010) 50.36% of the issued and paid-up share capital of the carrier were held by foreigners as at 31-Dec-2009, thus exceeding the 45% limit of the carrier's total issued and paid-up share capital. Pursuant to the Securities Industry (Central Depositories) (Foreign Ownership) Regulations 1996, shares held by foreigners which are within the Prescribed Limit shall be entitled to all rights and entitlements attached to the shares. However, shares held by foreigners which have exceeded the limit shall also be entitled to all such rights and entitlements, except for the exercise of voting rights. [more]
AirAsia announces foreign ownership exceeds limits
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Nok Air, Thai AirAsia report growth in 1Q profits as Bangkok’s LCC penetration rate reaches 36%
Thailand’s two largest short-haul low-cost carriers, Nok Air and Thai AirAsia (TAA), reported improvements in their profitability in 1Q2015 as market conditions improved. LCC passenger traffic in the Bangkok market surged 41% in 1Q2015 as Nok, Thai AirAsia and Thai Lion all pursued rapid expansion, particularly domestically. LCCs now account for 36% of passenger traffic in Bangkok (both airports) compared to 28% two years ago.
Total domestic traffic in the Bangkok market was up 25% in 1Q2015, driven by a 45% increase by the LCCs. But domestic yields remain under pressure and overcapacity concerns are unlikely to ease given the continued rapid capacity expansion by all three of Thailand’s LCCs along with the planned launch of Thai VietJet.
Thailand’s short-haul international market is seeing a healthier demand-supply balance as demand has quickly recovered after a challenging 2014. A surge in visitor numbers from other Asian countries has particularly benefitted AirAsia, which is the largest player in Thailand's international LCC market by a wide margin. TAA profits increased nearly four-fold as TAA has a balanced domestic/international network while Nok's profits grew more modestly on a very low base as it relies almost entirely on the more challenging domestic market.
The Singapore LCC sector Part 2: Tigerair cuts capacity on 13 routes while Jetstar quietly expands
Singapore-based LCC Tigerair has cut capacity on 13 routes and suspended seven routes entirely as part of a network restructuring. The cuts have driven a reduction in Singapore's LCC penetration rate and led to a better supply-demand balance in a market which had been – and to some extent still is – suffering from overcapacity.
But the reductions at Tigerair also have created opportunities for competitors. While one of the other two main LCC players in the Singapore LCC sector, AirAsia, also has responded to the challenging market conditions by cutting capacity, Jetstar has quietly expanded.
Jetstar has added capacity over the last year on nine of the 13 routes it competes against Tigerair. Most of these routes have seen Tigerair reductions.