AirAsia; Hold; RM2.92
Price target: RM2.90; AIRA MK
Challenging outlook
New challenge with emergence of Malindo Airways this year. Cost pressures will likely continue; potential upside from opening of KLIA2. Maintain HOLD and RM2.90 TP.

HwangDBS Research

AirAsia is still a BUY, at an unchanged RM3.39 FV, based on 11x FY13 earnings. We are adjusting some of our key assumptions in light of intensifying competition but are only lowering our FY14 estimates. Earlier this week, we showcased AirAsia and Asia Aviation at our Asean Corporate Day in Singapore, at which the requests for meetings were overwhelming. This may be a sign that AirAsia is back on investors' radar. We deem concerns over Malindo being a threat overblown. Meanwhile, prospects for the group's associates remain good.

OSK Research

http://klse.i3investor.com/servlets/ptres/13126.jsp

There has been no accumulation of AA shares since Jan 9. So next week will be crucial whether it will be CNY play counter.

AirAsi targets 17% to 20% growth in capacity...
http://biz.thestar.com.my/news/story.asp?f...59&sec=business

But capacity =/= profit

A big drop today but looking to recover...dont know want to buy some or not

I will re-enter once it reaches the Dec 2012, circa 250's

exactly.

TUNE INS HOLDINGS BERHAD IPO... maybe AA has some paper gain then...

AirAsia finalises 5-year review, sees India as exciting market

wants to develop its units in the Philippines and Japan while it views India as an exciting market.

as Malaysia now becomes a "cash machine", the management turns it focus to its other core markets in Thailand and Indonesia.

http://biz.thestar.com.my/news/story.asp?f...25&sec=business



This post has been edited by davinz18: Jan 25 2013, 04:31 PM

I thought they dont want to venture to India anymore...exciting must be dont have any partner yet la tu

Rumor is that they are looking at Kingfisher's license.

AirAsia is not doing fine in Japan

http://centreforaviation.com/analysis/peac...tleground-95426

Select Japanese carriers' domestic load factors: Jul-2012 to Nov-2012

Few point interest me:

1. AirAsia Japan "On time" Rate of only 43% compare with others which have 70% above (Japanese are very particular
on timing, already too much pampered with on time service) thus affect airasia japan brand name.

2. Home hub of Tokyo Narita's 23:00h curfew

3. 2nd highest cancellation rate, the highest between Peach & Jetstar Japan

4. Some strategic elements are carried out at its main office in Kuala Lumpur. ( Cultural clashes )

5. The ownership challenges

6. May not have targeted its flights effectively

7. Reduced its directors from 10 to seven


So many problems. Don't know what to say

FY12 Operating Stats – Promising Outlook Ahead

AirAsia Group released its 4Q operating stats yesterday. MAA (Malaysia AirAsia), TAA (Thai AirAsia) and IAA (Indonesia AirAsia) saw their RPKs growing by 7.8% / 22.5% / 10.9% y-o-y respectively during the quarter. Overall, the numbers for all three country hubs came well within our estimates. Growth in passenger numbers continue to be promising for the Group, with TAA and IAA showing the strongest prospects – TAA will benefit from being closer to the city by operating in Don Muang Airport while the passenger growth of IAA will be driven by the recent opening of its new hub in Ujung Pandang coupled with the aggressive expansion of its ticketing distribution network. We have a BUY call on AirAsia, with an unchanged FV of RM3.39 premised at 11x PE. We retain our BUY call on AAV (Asia Aviation), with a higher FV of THB7.35, which is pegged at 14.5 adjusted EV/EBITDAR.

http://research.osk188.com/attachments/45/...106b11a4ef5.pdf

AirAsia ties up with Tata Group, Hindustan Aviation to set up AirAsia India

In the deal, the Indian parties will take 51% equity stake while AirAsia will hold the remaining 49%, which is the equity it normally takes in its foreign joint ventures.

Of the 51%, sources said Tata Group will have 30% stake and Hindustan Aviation 21% equity stake.

The three parties is said to have signed an partnership agreement this week and have submited a proposal to the Indian government to seek a domestic air services licences also this week.

The joint venture plans to operate from Chennai in the southern state of Tamil Nadu and proposed to link smaller cities to the metropolis.

This post has been edited by davinz18: Feb 20 2013, 09:44 PM

About Tata Sons Limited

Tata Sons is an investment holding company, with investment across seven business sectors, including Materials, Engineering, Information Technology and Communications, Energy, Services, Consumer Products, and Chemicals. It holds promoter stakes in a number of Tata companies as well as joint ventures, and has minority investment in other companies.

About Telestra Tradeplace Pvt. Ltd
.
Telestra Tradeplace is an investment holding company of Mr. Arun Bhatia and one of its group companies is Hindustan Aerosystems Pvt. Ltd.. Hindustan Aerosystems manufactures and supplies precision components for the aerospace industry. Mr. Arun Bhatia has two sons, Aneesh and Amit Bhatia and a daughter, Ayesha Bhatia. Aneesh Bhatia serves as a director in Hindustan Aerosystems. Amit Bhatia serves on the Board of Directors at Queens Park Rangers Football Club in the United Kingdom alongside Tony Fernandes, the founder of AirAsia.

AirAsia; Hold; Price Target: RM2.90;


There is huge potential for the Indian aviation landscape as India has the second largest population in the world after China with 1.2bn people. Besides that, India also has a rapidly growing middle class as its GDP per capita currently stands at US$3,693 and is set to grow at 5.5% and 6.5% in 2012 and 2013 respectively. In addition, Chennai and its suburbs house a total population of 8.9m people, making it the fourth most populous metropolitan area in India. However, we also note that the aviation landscape in India is highly competitive with more than 10 airlines operating within the country currently. AirAsia will also likely face strong competition from fellow low-cost carrier SpiceJet, which also operates from Chennai and is India’s third largest airline by market share.


Source: HwangDBS Research - 21 Feb 2013

AirAsia India To Take To The Skies In Q4, Says Tony Fernandes

Founder and Group Chief Executive Officer of the Malaysian-based frills-free airline Tan Sri Tony Fernandes said the timeframe was subject to all regulatory approvals being obtained from the Indian authorities.

Asked on the cost of investment for AirAsia India, Fernandes said it was still early to confirm, but went on to say that the cost of starting a new airline was usually around US$30 million to US$50 million.

The proposed airline plans to operate from Chennai, Tamil Nadu, and focus on providing domestic Tier II/Tier III city connectivity to Indian travellers.

Asked on why AirAsia India selected Chennai as its hub, Fernandes said the Southern Indian region was viewed as the low-cost airline's "playground", given the enormous level of connectivity AirAsia offered to the southern cities from Kuala Lumpur and Thailand.

http://www.bernama.com.my/bernama/v7/bu/ne...s.php?id=929268

The Air Asia threat

How big is the threat?

Apart from AirAsia being the leading and largest low-cost carrier in Asia, the cost structure of the airline is the lowest in the world. According to local airlines’ representatives, AirAsia’s cost is at least 30% lower than Indian low-fare carriers because of low-cost terminals in other countries, cheaper jet fuel and other advantages.

With this huge cost advantage alone, AirAsia can give local low-fare carriers—IndiGo, SpiceJet Ltd and GoAir—a run for their money. Full-service carriers such as Jet Airways (India) Ltd and Air India will also feel the heat. Also, AirAsia chairman Tony Fernandes is known for unleashing Rs.1 fare from Mumbai to Kuala Lumpur.

http://www.livemint.com/Money/DeHCiZnoLacY...sia-threat.html

AirAsia on the run from low 2.57, in fact quite close to my potential entry of 2.50-2.55.

Hope General Erection come fast, so I can hantam gao2x.