Indonesia AirAsia expects to raise USD200 million from an initial public offering in 4Q2013, similar to Thai AirAsia's IPO according to Group CEO Tony Fernandes (Economic Times/businesstimes.com.sg, 06-Jun-2013). As previously reported by CAPA, Indonesia AirAsia plans to float 20% of its shares on the Indonesia Stock Exchange.
Indonesia AirAsia expects to raise USD200 million from an initial public offering
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Turbulence will hurt Southeast Asia’s airlines in 2017 as overcapacity bites
Southeast Asia is a region with enormous growth potential but a relatively cloudy outlook for airlines given the intense competition and overcapacity concerns.
Demand is on the rise, boosted by a growing middle class, rising discretionary incomes and relatively strong economies. Nearly every country in Southeast Asia continues to post GDP growth above the global average. The Philippines, Vietnam, Myanmar and Cambodia have been particularly strong with GDP growth in the high single digits.
However, GDP growth slowed to less than 5% in the rest of Southeast Asia in 2016 and is expected to only pick up slightly in 2017. In several Southeast Asian markets, capacity has been growing faster than demand, impacting yields as competition has intensified. With an order book that equals the size of the current active fleet and several airlines pursuing strategic expansion, capacity may again be added at a rate exceeding demand in 2017.
AirAsia Group to accelerate growth in 2017 with more deliveries, India push and Japan launch
The AirAsia Group is planning to accelerate expansion in 2017, with several additional deliveries. The short haul LCC is bullish on its prospects for 2017, particularly in India, Indonesia and the Philippines which are on course to achieve profitability by the end of 2016.
The group is also hoping to benefit from more favourable conditions in its original home markets of Malaysia and Thailand. While AirAsia has remained profitable at a group level over the last two years it has been impacted by relatively challenging conditions in Malaysia and Thailand and steep losses in India, Indonesia and the Philippines.
The group’s fifth joint venture, AirAsia Japan, is now slated to commence operations in 1Q2017. Japan will help drive a new phase of growth after a hiatus from fleet expansion over the last two years.