Indonesia AirAsia intends to IPO in the first quarter of 2013

PT Indonesia AirAsia will offer it’s IPO in the first quarter of 2013. The move comes after AirAsia moved its regional operations center to Indonesia.

Chief Executive Officer of AirAsia said the plan follows the steps taken by AirAsia X Sdn Bhd which will go public around October-November 2012. AirAsia X is a AirAsia business unit that specializes in serving long-haul flights.

Tony admitted that no bank was appointed as the lead underwriter yet. "The decision depends on the board of directors," he said.

AirAsia has decided to focus on developing the market in Indonesia. One proof shifts Tony Fernandes of AirAsia Sdn Bhd became Indonesia AirAsia. Tony replaced by Aireen Omar who is regional head of corporate finance and treasury AirAsia.

AirAsia currently has a 49% stake in Indonesia AirAsia. It operates 17 Airbus A320 aircraft and serves six cities in Indonesia. The airline is also flying from Indonesia to the four cities of Southeast Asia and one city in Australia.

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INDONESIA AIRASIA revenue increase 34.4%

PT Indonesia AirAsia has established itself in the low cost carrier (LCC). Over the past year, Indonesia AirAsia managed to collect revenue of IDR 3.7 trillion. This achievement is up 34.4% over 2010 revenue of IDR 2.7 trillion.

The increase is due to the addition of passenger revenue during 2011. "Indonesia Air Asia’s passengers increased 28% from year to year," said Jasmindar Kaur, AirAsia Berhad Company Secretary.

The report noted, the number of Indonesia AirAsia passengers achieved 5 million people last year. This number jumped 27.7% of total passengers in 2010 that as many as 3.9 million people. The increase is due to increased passenger Indonesia AirAsia passenger capacity of 5.1 million passengers to 6.4 million passengers. Of payload capacity, the average occupancy rate (load factor) is stable at 77%.

In addition, the number of flights by Indonesia AirAsia also increased 24% last year. In 2010 Indonesia AirAsia flight frequency reached 29,668 times, then last year the frequency of flight reached 36,653 times.

However, despite increased revenue, but Indonesia AirAsia's net profit in 2011 fell 86.9% from IDR 474.4 billion in 2010 to IDR 62.08 billion. Increased of burden of financing may the cause of the decline in net income. In addition, crude oil prices rose sharply last year also helped hoist the price of aviation fuel. "That's why Indonesia AirAsia's fuel costs last year totaled IDR 1.7 trillion," continued Jasmindar. These costs increased 67.2% of fuel costs in 2010 which amounted to IDR 1.02 trillion.

Not only Indonesia AirAsia is reaching revenue growth. Last year, the parent company of Indonesia AirAsia, AirAsia Bhd which also managed to record a revenue of RM 4.47 billion, up 13.31% of revenues in 2010 which amounted to RM 3.9 billion.

However, similar to Indonesia AirAsia, AirAsia Berhad's net profit also fell 46.8% from RM 1.06 billion to RM 564.1 million. This is triggered by rising fuel costs 41.6% of RM 1.2 billion in 2010 to RM 1.7 billion in 2011.  AirAsia Bhd while the number of passengers increased 12%, from 16 million passengers in 2010 to 17 million passengers in 2011. That, supported by increased transport capacity of Air Asia as much as 9%. In addition, this increase was also supported by the addition of the fleet. When in 2010 AirAsia Bhd has 53 fleet, then in 2011 increased to 57 fleet.

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AIRASIA opens new flight route SEMARANG - Kuala Lumpur

Low cost carrier, AirAsia, on Monday February 2, was officially have its maiden new flight route from Semarang to Kuala Lumpur. At this inaugural flight, occupancy rates of more than 90%.

Air Asia Regional Head of Commercial Kathleen Tan said Semarang is an unique destination. Many things that make Semarang is interesting, from rapid economic growth, colonial heritage buildings, to the islands within a short tour. "We're really excited to bring tourists from around the world to this historic Semarang," she said.

With the opening of the new route Semarang - Kuala Lumpur, AirAsia already flies to Kuala Lumpur from 14 cities in Indonesia. Prior to Semarang, among other previous departures are from Jakarta, Surabaya, Medan, Yogyakarta, Bandung, Denpasar, Solo, Balikpapan, Palembang, Aceh, Pekanbaru, Padang, and Makassar.

To strengthen the network of routes, AirAsia will also serve Semarang - Jakarta route twice per day, starting March 9. AirAsia Indonesia president director Dharmadi said that this step taken by the company's commitment to serving the domestic market, because the international market is already quite strong.

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AIRASIA Opens Direct Flight Kuala Lumpur-Sydney

AirAsia X, an affiliate of AirAsia, expanded its network in Australia with the launch of direct flights from Kuala Lumpur to Sydney.

In its maiden flight on April 1, 2012, AirAsia X offers fare airline seat, ranging from IDR 607.000 (one way) for economy class and start from IDR 3.047.000 each way for flights with Premium Fly Flatbed.

"The opening of routes from the hub in Kuala Lumpur to Sydney is the culmination of our dreams and all associated with AirAsia X, in particular the Group CEO of AirAsia, Tan Sri Tony Fernandes," said AirAsia X CEO Azran Osman Rani.

He believes in the last 4 years the company can do things that seem impossible to do.

The launch of new routes announced by AirAsia X CEO, Azran Osman-Rani, AirAsia X Chairman, Tan Sri Rafidah Aziz, Destination New South Wales CEO, Sandra Chipchase, Sydney Airport Executive Director of Aviation Services, Shelley Roberts, representatives from the tourism department.

Azran added from 1 April 2012, AirAsia X, an affiliate of AirAsia who serve long-haul flights, will fly daily from their hub at Kuala Lumpur International Airport to Kingsford Smith, Sydney.

With the opening of Kuala Lumpur – Sydney route, passengers will be able to perform advanced flight to more than 80 destinations through 165 owned by AirAsia routes to countries in Asia and beyond.

Sydney became the fourth AirAsia X destinations in Australia after the Gold Coast, Melbourne and Perth. This route as well be the only low cost direct flights from Sydney to Kuala Lumpur.

According to him, Australia is a major market share for AirAsia X, and Sydney route has long been a priority of the company due to high demand from the users of air travel services.

"Our goal is to make the journey to international destinations become more affordable for all people, and now our passengers will be able to explore Sydney, Australia and other areas with our extensive route network and at an affordable cost," he said.

He was optimistic that the new route is able to follow the success of the route that had been launched earlier, namely the Gold Coast, Melbourne and Perth.

Azran explains fly-thru service will be available for those who will fly to Sydney from Indonesia (Bali, Medan, Surabaya and Jakarta), Thailand (Bangkok, Phuket), Singapore, and Vietnam (Ho Chi Minh City). This service also allows passengers to buy an airline seat for the two routes at once via Kuala Lumpur.

AirAsia Group CEO Tan Sri Tony Fernandes said the launch of the new route is not only good news for its customers, but also for the tourism industry, particularly in Sydney.

"Sydney is also AirAsia X has become a priority because of high demand for direct flights from Kuala Lumpur to the city," he added.

Kuala Lumpur - Sydney route to start operations using aircraft type Airbus A330-300 with a configuration of 12 seats and 365 flatbed Premium fly economy class seats.

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AirAsia will move its regional office to Jakarta

Low-cost carrier, AirAsia has said it will focus work on the ASEAN market. Unmitigated AirAsia will move its regional office to Jakarta next year.

"We want to be the ASEAN airline. We probably bring most ASEAN passengers than other airlines, "said CEO of Air Asia, Tony Frenandes at the ASEAN Business and Investment Summit in Bali International Convention Center, Nusa Dua, on Thursday (17/11).

AirAsia's regional offices will move from Kuala Lumpur to Jakarta. The launch of the new office itself will take place in January 2012. Tony said AirAsia moved into offices in Jakarta because the office was located ASEAN secretariat in Jakarta. "We want to show that we are no longer a carrier of Malaysia, Thailand, or Indonesia. But we are an ASEAN airline, "he said.

In addition to moving his office, AirAsia will add approximately 100 of the aircraft next year. These planes will serve particular routes in ASEAN. "The problem is, every airline is now looking for the plane. It is a nice problem, "he said. Tony adds, AirAsia is targeting growth of its business was not too affected by floods in Thailand. The company is still optimistic that could grow 20% this year.

Regarding the ASEAN open sky policy, Tony said he really supported it and did not see the risk of Indonesian airlines will lose the market. "Let us be more confident. What is good for the people of Indonesia? I think AirAsia has been quite beneficial to many people of Indonesia, business, hotels, labor, and the pilot is growing. We must think big, think ASEAN, if not we will be beaten by China and India," he said.

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