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AirAsia X launches $370m share sale as it eyes expansion | AirAsia X launches $370m share sale as it eyes expansion |
(35 minutes later) | |
AirAsia X, the long-haul arm of Asia's biggest budget carrier AirAsia, has kicked off a share sale to raise up to $370m (£238m). | AirAsia X, the long-haul arm of Asia's biggest budget carrier AirAsia, has kicked off a share sale to raise up to $370m (£238m). |
The airline plans to use the money to repay debt and to fund expansion plans. | The airline plans to use the money to repay debt and to fund expansion plans. |
Asia-Pacific is one of the fastest-growing and most profitable markets and airlines are keen to expand and tap into the region's potential. | |
Analysts said the demand for low-cost air travel in the region was likely to increase further in the coming years. | Analysts said the demand for low-cost air travel in the region was likely to increase further in the coming years. |
"In terms of demand, there is still room for growth as the medium and long-haul sector is not as competitive as the short-haul sector,'' said Brendan Sobie of the Centre for Asia Pacific Aviation. | "In terms of demand, there is still room for growth as the medium and long-haul sector is not as competitive as the short-haul sector,'' said Brendan Sobie of the Centre for Asia Pacific Aviation. |
Mr Sobie added that the share sale will help boost AirAsia X's plans to establish new hubs to strengthen its network. | Mr Sobie added that the share sale will help boost AirAsia X's plans to establish new hubs to strengthen its network. |
'Tip of the iceberg' | |
AirAsia is one of the pioneers in low-cost air travel in Asia and has benefited from the rising travel demand in the region. | |
Launched in 2001, the airline now flies to 20 countries and has established itself as a key player for the area. | |
Driven by the success of its business model over the short-haul routes, the airline launched AirAsia X in 2007 to offer low-cost long-haul flights. | |
Tony Fernandes, founder of the airline, said that the listing of AirAsia X indicated that it had been a success, adding that the carrier planned to expand its operations further. | |
"AirAsia X's unique proposition lies in their competitive fares and early mover advantage," said Mr Fernandes. | |
"We are expanding our group further and this is just the tip of the iceberg,'' he added. | |
AirAsia has already announced a joint venture with India's Tata Group to launch a budget airline in the country. |
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