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
You may also be interested in the following articles...
AirAsia 2Q profits drop as its Malaysian unit grapples with excess aircraft. But outlook improving
AirAsia has reported a drop in profits at its Malaysian short-haul subsidiary for 2Q2014 while its affiliates in India, Indonesia, Philippines and Thailand were all in the red. But Asia’s leading LCC group is confident market conditions are improving, leading to improved results in 2H2014 and 2015.
The outlook in Malaysia should particularly improve as AirAsia is in a position to benefit from the upcoming restructuring at Malaysia Airlines (MAS). AirAsia has seen profits slide over the past year due to rapid capacity expansion at MAS and Lion Air Group’s new Malaysian affiliate Malindo Air, pressuring yields.
Malaysia AirAsia has responded by slowing down expansion, increasing ASKs by a paltry 3% in 1H2014 despite having a much larger fleet than one year ago. Anticipated capacity cuts at MAS as it restructures could enable AirAsia to reaccelerate growth and restore aircraft utilisation rates to more normal AirAsia levels.
AirAsia X records 2Q2014 loss as Australia underperforms. But long-term prospects are still bright
AirAsia X incurred a large loss in 2Q2014 driven by a weak performance on Australian routes, where large capacity gains from 2H2013 continue to impact yields. The MYR129 million (USD40 million) loss for 2Q2014 marks the third consecutive quarter of losses for AirAsia X, which has seen its stock price slip by over 30% since its Jul-2013 initial public offering.
But the long-haul low-cost carrier group expects significant improvements in 2H2014 as the rate of capacity growth slows in its core Malaysian market, allowing for the capacity added over the past year to be absorbed. AirAsia X is also reducing capacity slightly on two of its weakest routes, Sydney and Perth, a sensible move given the market conditions in Australia.
While the losses have been disappointing, strategically AirAsia X has improved its position significantly over the last year. The group has established two new joint ventures and is gaining market share in key medium-haul markets from Malaysia, putting it in an enviable position as rival Malaysia Airlines (MAS) struggles and restructures.