30-Mar-2011 3:54 PM
AirAsia X to list shares by 2012: Fernandes
Analysis
Summary
- AirAsia X plans to list shares by 2012 to raise funds for expansion.
- AirAsia CEO Tony Fernandes believes that an airline cannot grow capital without being public.
- Thai AirAsia and AirAsia Indonesia have recently announced plans to launch IPOs in 2011.
- AirAsia X's listing plans were mentioned previously by Tony Fernandes.
- AirAsia's shares fell 1.1% following the announcement.
- Other low-cost carriers, such as Tiger Airways and Cebu Pacific, also experienced share price declines.
He told Reuters: "An airline cannot grow capital without being public, and so most definitely AirAsia X will be listed. I hope this year or next year." The statement comes after Thai AirAsia and AirAsia Indonesia recently announced plans to launch IPOs later in 2011. Mr Fernandes had mentioned previously he planned to list AirAsia X, without providing a timeframe.
AirAsia's shares fell 1.1% yesterday. Tiger Airways eased 0.7%, while Cebu Pacific lost a further 2.8%.
Selected LCCs daily share price movements (% change): 30-Mar-2011