AirAsia Group chalks out major shake-up

The Group has major plans which include an African debut in October beginning with Mauritius, a merger in Thailand and Indonesia, a strategic partnership and prepayment of debts.

 

KUALA LUMPUR: The AirAsia Group appears to have chalked out major plans for the months ahead in the wake of the Tata Group of India announcing that it was increasing its stake in AirAsia India to 49 per cent, according to ch-aviation which bills itself as “the world’s leading airline intelligence provider since 1998”. “The Tata Group presently has 41.06 per cent.”
“It’s acquiring 7.94 per cent of New Delhi-based investment firm Telestra Tradeplace’s stake in AirAsia India.”
The Tata Group has formally informed the Mumbai Stock Exchange on its increased stake in AirAsia India. Telestra’s remaining stake in AirAsia in India will be acquired by Subramaniam Ramadorai and R. Venkataramanan, Tata Group executives and AirAsia India board members, acting in their individual capacity.
The portal also quotes Thai Deputy Prime Minister Somkid Jatusripitak in a Reuters report as saying that AirAsia may merge in Thailand and Indonesia into one company listed on both the Thai and Malaysian stock exchanges.
Jatusripitak added that the merger also calls for AirAsia Group and Thai Airways International to form a strategic partnership that does not involve any exchange of equity. Earlier, the rumours were that Thai Airways International would acquire a 20 per cent stake in AirAsia Thailand. The rumours have since been rebutted.
The Thai Deputy Prime Minister was apparently taking his cue from a meeting he had with AirAsia Group Founder and CEO Tony Fernandes in Bangkok last week. Fernandes, at that time, had been quoted in the media as saying that he was considering using Bangkok as the Group’s international headquarters. He cited Thailand’s increasing prominence and growth potential as plus points giving it his vote of confidence.
Elsewhere, ch-aviation quotes Mauritian Minister of Tourism, Xavier-Luc Duval telling L’Express newspaper that AirAsia X will likely make its African debut from Kuala Lumpur in October this year. “AirAsia X will connect Mauritius to Asia, probably in October,” he was quoted as saying. “The airline will operate four flights per week to KLIA and anticipates bringing in at least 50,000 additional tourists to our island per annum.”
Air Mauritius is currently the only airline flying the Mauritius-Kuala Lumpur route.
In another snippet, ch-aviation noted that the AirAsia Group had informed the Kuala Lumpur Stock Exchange that Tune Live Sdn Bhd, an investment vehicle owned by Fernandes and Chairman Kamarudin Meranun, will fork out USD259 million for 559 million newly-issued shares in the AirAsia Group.
The investment, which will see Tune Live’s stake in the AirAsia Group increasing to 32.4 per cent from the present 18.9 per cent, will reportedly be used for prepayment and repayment of the Group’s debts, financing aircraft, engines and parts.