AirAsia revenue up 32% in final quarter; Tiger Airways to take stake in SEAir


Tiger Airways signed a term sheet for the purchase a 32.5% stake in SEAir for USD6 million from co-founders Iren Dornier and Nick Gitsis, who will hold a combined 7.5% stake in the carrier after the sale. A majority 60% stake of SEAIR will still be held by local investors.

  • Tiger Airways to acquire a 32.5% stake in SEAir for USD6 million.
  • SEAir will continue to be majority-owned by local investors.
  • SEAir plans to operate short-haul flights within a five-hour flying radius using A320 family aircraft.
  • Virgin Blue's passenger numbers decreased by 3.7% in January 2011 compared to the previous year.
  • AirAsia's revenue increased by 32.4% in the last quarter of 2010.
  • PEA daily share price movements on 24-Feb-2011.

The deal comes approximately three months after Tiger leased two of its A319 aircraft to SEAir. The parties will now proceed to finalise the definitive sale and purchase agreement for the stake. SEAir will offer short-haul, point-to-point flights within a five-hour flying radius, using A320 family aircraft and crew based in the Philippines.

Virgin Blue traffic highlights in Jan-2011:

  • Passenger numbers: 1.6 million, -3.7% year-on-year;
    • Domestic: 1.3 million, -0.8%;
    • International: 236,090, -17.2%;
  • Load factor: 82.5%, -1.7 ppts;
    • Domestic: 79.9%, -3.6 ppts;
    • International: 86.1%, +0.8 ppt;
  • Average aircraft in fleet: 87.8, +2.6%;
  • On-time performance: 81.4%, +8.2 ppts.

AirAsia financial highlights for the three months ended 31-Dec-2010:

  • Revenue: USD603.9 million, +32.4% year-on-year;
    • Malaysia AirAsia: 387.0 million, +33%;
      • Ancillary: USD71.3 million, +121%;
    • Thai AirAsia: USD126.8 million, +30.9%;
      • Ancillary**: USD19.5 million, +137%;
    • Indonesia AirAsia: USD90.1 million, +38%;
      • Ancillary***: USD17.5 million, +122%;

*Based on the conversion rate at USD1 = MYR3.066
**Based on the conversion rate at USD1 = THB30.625
***Based on the conversion rate at USD1 = IDR8,870

Selected PEA daily share price movements (% change): 24-Feb-2011

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