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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Indonesia AirAsia has decided to significantly slow down expansion in 2014 as market conditions in the Indonesian market, particularly domestically, have become challenging. The carrier, which added eight A320s in 2013, had dropped plans to add two aircraft in 1H2014 and is also considering deferring some or all of the four deliveries initially slated for 2H2014.
Indonesia AirAsia is also planning to adjust its network to focus more on international services. The international market is more profitable as it is less impacted by the devaluation of the Indonesian rupiah. But cutting domestic capacity will result in a reduction in AirAsia’s already small share of Indonesia’s domestic market.
AirAsia still has a strong position and bright outlook in Indonesia’s international market. But 2014 will mark another setback in the group’s long-term strategy of securing a larger presence in Southeast Asia’s largest domestic market.
AirAsia cements leading position in Indonesia international market with new AirAsia X Bali base
Malaysia-based long-haul low-cost airline group AirAsia X is moving forward with plans to establish its second affiliate in Indonesia with a base from the resort island of Bali. The group recently signed an agreement with a local partner to establish Indonesia AirAsia X (IAAX) and has already secured an air service licence from Indonesian authorities.
IAAX will likely launch services by the end 2014, sourcing 377-seat A330-300s from the group’s recently expanded order book. The new carrier plans to serve destinations in Australia and North Asia, connecting dots which are already served by AirAsia X from Kuala Lumpur and soon by Thai AirAsia X from Bangkok.
Indonesia’s LCC sector is fiercely competitive, with a fleet of nearly 200 aircraft which is slated to expand by another 20% in 2014. But IAAX will be Indonesia’s first long-haul low-cost carrier, giving it important first mover advantage in several relatively underserved markets.