AirAsia X CEO comments on fuel surcharge and IPO
AirAsia X CEO Azran Osman-Rani commented on AirAsia’s decision to implement fuel surcharges from 03-May-2011 and its planned IPO (Bloomberg TV, 04-May-2011):
AirAsia: “You never know where fuel prices are going to head in the next few months. So it does give us a bit of a cushion. Yes, we do hedge, but probably not as substantially as other airlines. For us, the biggest strategy is being very distinctive in being the world’s most efficient fuel-volume consumer rather than hedging, because no airline in the world has achieved any sustainable competitive advantage from a fuel hedge policy. We are in the midst of going through very thick proposal documents from advisers and underwriters. We are expecting to probably look at first half of next year in terms of a listing timeframe. Realistically the primary listing base will probably still be in Kuala Lumpur. We are evaluating an option to have a dual listing in another exchange. Whether that is Hong Kong, New York or London, those are all being evaluated. It all depends whether there really is an investor pool that we won’t be able to tap if we were only listed in Kuala Lumpur.” CEO Azran Osman-Rani. Source: Bloomberg TV, 04-May-2011.