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The aviation business is experiencing a “purple patch” with demand for seats far outstripping capability amid a protracted wait for brand new plane and a scarcity of pilots additional discouraging any recent competitors, Tony Fernandes, the founding father of low-cost provider AirAsia, mentioned.
“I’ve by no means been this bullish earlier than,” Fernandes, who began AirAsia 23 years in the past, mentioned. “Southeast Asia goes by way of a renaissance interval of smart economics, and that’s a superb factor.”

Following the merger, which is predicted to conclude midyear, the brand new entity will look to boost as much as US$400 million by way of promoting fairness, Fernandes mentioned. Citigroup Inc. and US advisory financial institution Evercore Inc. have been appointed to steer the capital elevating. A US$200 million income bond, securitised in opposition to income from new routes, can be anticipated to be finalised quickly, he mentioned.
Fernandes mentioned the merger of the 2 airways will create a brand new agency referred to as AirAsia Group that may subsequently take over AirAsia X’s itemizing on Bursa Malaysia. The corporate may additionally put off its AirAsia X branding because the aviation companies consolidate.
Holding out for cheaper flights? Excessive fares are right here to remain, AirAsia says
Holding out for cheaper flights? Excessive fares are right here to remain, AirAsia says
AirAsia has ambitions to broaden its footprint from a predominately Asian airline to a worldwide low-cost provider with a extra intensive community. It plans to start out flying to Kazakhstan, its first route in Central Asia, later this 12 months.
Fernandes, who has beforehand spoken about succession on the firm he based, mentioned on Monday that he would retain an advisory function at AirAsia Group following the merger. He’ll stay chief government of Capital A, his different listed firm that may finally maintain all of the non-aviation companies he’s began.
2024 shall be an excellent 12 months. 2025 shall be a tremendous 12 months … there’s plenty of progress for us
These embody Teleport, a logistics firm, and Transfer, an internet journey company that additionally operates a ride-hailing enterprise. Transfer is finalising a US$30 million capital elevating whereas Teleport has raised US$35 million in debt, he mentioned.
The corporate’s aircraft-maintenance arm, Asia Digital Engineering, has additionally managed to boost US$100 million, Fernandes mentioned.
The Monetary Occasions reported in October that Capital A is searching for to boost greater than US$1 billion in debt and fairness and record a few of its companies by way of a blank-check firm in New York. The corporate mentioned in November that it’s going to search a Nasdaq itemizing by way of a particular objective acquisition firm merger with Aetherium Acquisition Corp.
“2024 shall be an excellent 12 months. 2025 shall be a tremendous 12 months,” Fernandes mentioned. “There’s plenty of progress for us.”
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