AirAsia X expects to be profitable in a year's time
Newly launched long- haul budget airline AirAsia X reportedly expects to be profitable in a year as economic growth boosts demand for leisure travel. (11/5/2007)
According to Bloomberg, the carrier aims to fly about 1.1 million passengers in the next 12 months as it adds planes and routes, Azran Osman Rani, AirAsia X´s CEO, reportedly said.
"By offering cheaper rates, we are targeting people who never flew before," Azran said. "We´ll break even within the first 12 months, on a cash basis" on the assumption the airline will fill 75 percent of its seats.
According to a media report by Bernama, new shares will be issued to bring in the two additional stakeholders for AirAsia X who will be named at the month-end, according to Osman Rani.
The new shares will amount to 20 percent of the existing number of shares and hence swell the total number of shares, he added.
The new share issue will dilute the shares held by the start-up carrier´s current owners - 20 percent held by AirAsia Bhd, 60 percent by a consortium led by AirAsia´s founder and chief executive officer Tony Fernandes and 20 percent by Richard Branson´s Virgin Group. AirAsia X is an affiliate of profitable no-frills airline AirAsia.