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AirAsia profits in 2009, but times are getting tougher

AirAsia cannot be immune from the cold economic winds sweeping the world. The LCCs is facing increasing headwinds: fuel prices are rising in line with recovering economic growth, Malaysia Airlines is being recapitalised and coming out of its shell, ancillary revenue growth is waning, network expansion targets (ie India ad Vietnam) look more risky than its previous growth profile and its much-needed new LCC Terminal is looking like being delayed by another 6-12 months beyond its 3Q2011 timeframe.

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