AirAsia X is reportedly considering listing on the Hong Kong or New York stock exchange, following proposals from foreign investment banks pitching to secure the mandate for the carrier’s IPO (The Star Online, 10-Jun-2010). The IPO is likely to value the carrier at USD500-600 million. AirAsia X is 48% owned by Aero Ventures Sdn Bhd, while Virgin Group and AirAsia Bhd each have a 16% stake in the LCC. Orix Group and Manara Consortium each own 10% stakes. The carrier will remain majority owned by Malaysians and is reportedly in talks with a Malaysian Government-linked fund to take up a strategic stake. Goldman Sachs, Credit Suisse and Royal Bank of Scotland have been lobbying for the IPO mandate.
AirAsia X considers listing on Hong Kong or New York stock exchange
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AirAsia X to become the ninth Asia Pacific low cost airline serving the US, and the third in Hawaii
Malaysia’s AirAsia X is launching services from Osaka to Honolulu in Jun-2017, making it the second LCC to operate from North Asia to Hawaii and the third LCC from Asia-Pacific. The route is made possible by a combination of liberal air service agreements, providing fifth freedom rights to the Malaysian airline. The Korean Air LCC subsidiary Jin Air and Qantas subsidiary Jetstar Airways are currently the only LCCs from Asia Pacific with service to Hawaii – or any of the 50 US states.
AirAsia X secured US FAA approval in Feb-2017, ending a tedious two year process. AirAsia X ibecomes the ninth Asia Pacific LCC to secure US FAA approval and the second from Southeast Asia, after Cebu Pacific. Six Asian LCCs currently serve Guam and five serve Saipan.
Asian LCCs will inevitably also serve the mainland US. Both AirAsia X and Cebu Pacific, along with new Chinese LCCs, have the US west coast in their business plans. Cebu Pacific is the only likely low cost operator of nonstop flights from Southeast Asia to the continental US.
Malaysia’s AirAsia: resuming domestic expansion and eyeing MASwings routes
AirAsia is resuming domestic expansion in the Malaysian market with a focus on connecting more dots within its network of 15 domestic destinations. The LCC is launching or resuming three domestic routes from Johor Bahru in late Apr-2017 and has lodged applications for four more new domestic point-to-point routes.
By the end of 2017 AirAsia is also aiming to take over a few domestic routes within east Malaysia that are now exclusively operated by the Malaysia Airlines Group turboprop subsidiary MASwings. The routes are part of the Malaysian government’s subsidised rural air services (RAS) programme, but are potentially big enough to support larger aircraft on a commercial basis. The Malaysia Airlines Group is preparing to reduce its ATR 72 turboprop fleet further following anticipated changes to the RAS programme, which is coming up for renewal this year.
AirAsia is the leading domestic airline in Malaysia and has 50% of its total seat capacity allocated to the domestic market. However, AirAsia’s domestic capacity has been flat the last three years as it has focused entirely on international expansion.