AirAsia requested (14-Sep-09) a suspension of trading of ordinary shares on 15-Sep-2009, pending the announcement on the results of the bookbuilding exercise including the pricing of new ordinary shares related to the private placement. [more] The LCC expects to raise up to USD189.6 million from the sale of 400 million new shares, representing 16.7% of existing shares, to be used to reduce debt resulting from its fleet expansion (Reuters, 14-Sep-09).
AirAsia announces suspension of trading ahead of new share issue
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MAA has benefitted over the last year from the restructuring of Malaysia Airlines and an improvement in overall market conditions. However, the new Malaysia Airlines is starting to emerge as a tougher competitor, with a new, more aggressive pricing strategy. Meanwhile Lion Group’s Malaysian JV Malindo Air is again accelerating expansion, targeting several of AirAsia’s most lucrative routes.
Over the past two months CAPA has published a comprehensive series of reports analysing the new strategy of the Malaysia Airlines Group, Malindo and AirAsia X. In this report CAPA examines the outlook for Malaysia’s largest airline, MAA.
Malindo Air Part 3: interline partnerships drive new phase of growth for Lion Group’s Malaysian JV
Malaysia’s Malindo Air is focusing on partnerships both within and outside the Lion Group to help support accelerated growth. Malindo now accounts for approximately 8% of traffic at Kuala Lumpur International Airport (KLIA) and will soon link KLIA with over 30 destinations, making it attractive to foreign airlines seeking feed.
Malindo has implemented interlines with Turkish Airlines, Qatar Airways and Etihad Airways over the last four months. It is now in the process of implementing an interline agreement with Oman Air, and aims to have seven interlines in place by the end of 2016.
Malindo is also now working more closely with other airlines in the Lion Group. Malindo recently began selling connections beyond Bangkok on Thai Lion Air, and plans soon to begin selling connections beyond Jakarta on Batik Air.