AirAsia eyes Vietnam launch, turnaround India and Japan units
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AirAsia Group chief executive Tony Fernandes says the group has no plans to establish new subsidiaries over the next three years, apart from a unit in Vietnam. In a series of tweets, Fernandes says the low-cost carrier will focus its efforts on launching AirAsia Vietnam, as well as making Indonesia AirAsia and AirAsia Philippines “very profitable”. Last December, AirAsia signed a memorandum of cooperation with Thien minh Travel for a Vietnamese joint venture.
Meanwhile, AirAsia‘s Indonesia and Philippines units, which have suffered losses over the years, have had their financials incorporated into the Group since the start of 2017. AirAsia has said that it is planning for a secondary listing for its Indonesia operations in fiscal 2019.
Fernandes is also expecting AirAsia India and AirAsia Japan to be profitable by 2021. AirAsia India is working towards launching international services while AirAsia Japan plans to start connecting to points in North Asia.
“We have a great seam[less] franchise. Indonesia, Malaysia, Thailand, Philippines and Vietnam… All the major populations and growing economies. Coupled with two great countries to enable us to cover the world – India and Japan.”
The AirAsia Group previously had plans to launch a China unit and signed a MoU in May 2017. The pact with China Everbright Group and the Henan Government Working Group however lapsed in August 2018.
Questions & Answers
Q.Which specific units does AirAsia intend to make profitable in the near future?
Which specific units does AirAsia intend to make profitable in the near future?
AirAsia plans to focus its efforts on making Indonesia AirAsia and AirAsia Philippines "very profitable". These units have reportedly suffered losses in previous years, with their financials incorporated into the Group since early 2017.
Q.What are AirAsia's plans for its operations in India and Japan?
What are AirAsia's plans for its operations in India and Japan?
AirAsia is expecting both AirAsia India and AirAsia Japan to become profitable by 2021. AirAsia India is working to launch international services, while AirAsia Japan aims to start connecting to destinations in North Asia.
Q.Has AirAsia pursued expansion into other major markets recently?
Has AirAsia pursued expansion into other major markets recently?
Yes, AirAsia previously planned to launch a unit in China. They signed a Memorandum of Understanding in May 2017, but this pact with China Everbright Group and the Henan Government Working Group lapsed in August 2018.
Q.When will AirAsia finalise its secondary listing for its Indonesian operations?
When will AirAsia finalise its secondary listing for its Indonesian operations?
AirAsia is planning for a secondary listing for its Indonesia operations in fiscal 2019. This initiative is part of their broader strategy for the unit.
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