Indonesia AirAsia, Philippines AirAsia and new India and Japan joint ventures. The next stage begins

Premium Analysis

Part 2 of this report on the financial results of the AirAsia Group for 2Q2014 covered the – probably temporary – decline in fortunes for AirAsia's first and largest affilliate, Thai AirAsia.

Part 3 now examines the results on the outlook for the other affiliaties of the now-sprawling AirAsia group in other markets. As competition among LCCs grows in Asia, AirAsia is reaching the stage where its geographic market power can offer a unique strength. But it is not all plain sailing.

Indonesia AirAsia represents the group in that national market, where Bali/Denpasar is to become a transfer hub for Indonesia Air Asia and long-haul local JV Indonesia AirAsia X. Indonesia AirAsia is already Indonesia's largest international airline (by seats), but domestically the market competition has been intense, now partly diminished by the recent withdrawal of two competitors. Meanwhile, Philippines AirAsia has a more challenging path in what is a strenuously contested market.

As AirAsia ventures into India with AirAsia India and renews its presence in Japan's market with AirAsia Japan, the group will need its southeast Asian affiliates to maintain profitability.

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