Air Asia & expats
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AIR ASIA STAKE SOLD FOR USD 26 MILLION 4 April 2003 - Source: FT
Air Asia, Malaysia's budget airline, has sold a 26 per cent stake to three foreign investors for US$26m as it prepares to meet increased competition in south-east Asia.
Bahrain-based Islamic Development Bank will take a 10 per cent stake in Air Asia, Saudi Arabia's Crescent Venture Partners 9 per cent, and Frankfurt-based Deucalion Capital 7 per cent.
The new investment will help Air Asia to buy or lease another 11 Boeing 737s, increasing its fleet to 18 aircraft, as it prepares to fly to Thailand and Indonesia next year in its first foray outside its Malaysian home market.
Tony Fernandes, Air Asia founder and chief executive, said he was not worried about possible competition from SIA, which he said was likely to lose money on a budget airline. "Singapore Airlines is a premier brand. You do not get the Ritz-Carlton creating budget hotels. If you lose your focus, you are going to lose," he said.
Air Asia is hoping to draw customers from Singapore, the main regional air hub, by bussing passengers from the city-state to nearby Senai airport in southern Malaysia. In spite of stiff competition from Malaysian Airlines (MAS), two-year-old Air Asia reported a profit of M$11.8m (US$3.1m) for the second half of 2002. Air Asia last year flew 1.1m passengers, 10 per cent of the total Malaysian aviation market, by pricing flights at little more than bus fares.
Don't worry, I doubt they'll be buying A'bus anytime soon ...
Air Asia, Malaysia's budget airline, has sold a 26 per cent stake to three foreign investors for US$26m as it prepares to meet increased competition in south-east Asia.
Bahrain-based Islamic Development Bank will take a 10 per cent stake in Air Asia, Saudi Arabia's Crescent Venture Partners 9 per cent, and Frankfurt-based Deucalion Capital 7 per cent.
The new investment will help Air Asia to buy or lease another 11 Boeing 737s, increasing its fleet to 18 aircraft, as it prepares to fly to Thailand and Indonesia next year in its first foray outside its Malaysian home market.
Tony Fernandes, Air Asia founder and chief executive, said he was not worried about possible competition from SIA, which he said was likely to lose money on a budget airline. "Singapore Airlines is a premier brand. You do not get the Ritz-Carlton creating budget hotels. If you lose your focus, you are going to lose," he said.
Air Asia is hoping to draw customers from Singapore, the main regional air hub, by bussing passengers from the city-state to nearby Senai airport in southern Malaysia. In spite of stiff competition from Malaysian Airlines (MAS), two-year-old Air Asia reported a profit of M$11.8m (US$3.1m) for the second half of 2002. Air Asia last year flew 1.1m passengers, 10 per cent of the total Malaysian aviation market, by pricing flights at little more than bus fares.
Don't worry, I doubt they'll be buying A'bus anytime soon ...
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The next confirmed step is a base at Johor. The company has waited to get esteblished before making this move as it intends to provide a solid service and network opportunity to the Malaysian's who are living in the south who want to travell domestically and also to Singaporeans. The company will have the whole logistics of transport from Johor Senai Apt to and from Singapore. Bringing the same concept down south, Air Asia gives a low cost choice and alternative to Malaysians and Singaporeans. After all they can still fly MAS/SIA/Silkair.
As for the Expats issue. What else I forgot to mention was that Expats would be employed on LOCAL terms. Just like everyone else here. A bit tough some may say but it's really take it or leave it. And there will be takers. Unfortunatelly it's an employers marketr in Aviation these days. The only addition I heard mentioned was a housing allowance provided.
Aircraft are supposed to arrive on average one a month and No, there are no plans for Airbus at all yet. Maybe 737 NG's in a few years time.
As for the Expats issue. What else I forgot to mention was that Expats would be employed on LOCAL terms. Just like everyone else here. A bit tough some may say but it's really take it or leave it. And there will be takers. Unfortunatelly it's an employers marketr in Aviation these days. The only addition I heard mentioned was a housing allowance provided.
Aircraft are supposed to arrive on average one a month and No, there are no plans for Airbus at all yet. Maybe 737 NG's in a few years time.
Join Date: May 2000
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Cabiatir, what hasn't been mentioned is that the deal for the 11 737-300 has been signed, sealed and will be delivered from sometime before October till June 2004. All the aircrafts will come from Gecas with four being bought outright and the remaining seven being leased. With the demise of Sars in the region it's looking more and more rosy.(I hope,two fingers crossed!)
As for flying long range, I believe the company is taking one step at a time though they have permission to fly to the neighbouring countries and sooner or later they will eventually expand overseas.
Goldwing2000
As for flying long range, I believe the company is taking one step at a time though they have permission to fly to the neighbouring countries and sooner or later they will eventually expand overseas.
Goldwing2000
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...well thanks guys for your prompt answers ...even if as a pilot I shouldn't say that I think Low cost operations are really bringing air travel closer to the people..it's surely true in Europe and in looking forward to see how AA will do in the far east!!
One last question...does anybody know on what basis is a local term contract at AA, both for CPT and FOs ? i couldn't find any related post..
One last question...does anybody know on what basis is a local term contract at AA, both for CPT and FOs ? i couldn't find any related post..
