|Bid||0.7350 x 0|
|Ask||0.7400 x 0|
|Day's Range||0.7300 - 0.7550|
|52 Week Range||0.5000 - 2.9500|
|Beta (5Y Monthly)||N/A|
|PE Ratio (TTM)||1.63|
|Earnings Date||Aug 28, 2019 - Sep 03, 2019|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||N/A|
Malaysia's AirAsia Group Bhd is looking to raise 2 billion ringgit ($469 million), its CEO was quoted as saying by the Nikkei Asian Review on Thursday, a day after its auditor cast doubt on the airline's ability to continue as a going concern. Its auditors said AirAsia's financial statements and current industry conditions indicated material uncertainties that could raise doubts about the company's future prospects. AirAsia <AIRA.KL> said in a statement some financial institutions had indicated they would support a funding request of over 1 billion ringgit and that it was also considering various fundraising options, including debt and equity.
Asia's biggest budget carrier faces uncertainties due to the pandemic, auditor Ernst & Young has warned.
Tycoon Tony Fernandes bought AirAsia from the Malaysian government for less than a dollar two decades ago. The perennial overcapacity of the airline industry made AirAsia vulnerable in the first place. AirAsia did not cut flights until the end of March.
(Bloomberg) -- AirAsia Group Bhd. shares slumped nearly 18% following a trading suspension that came as auditor Ernst & Young said the carrier’s ability to continue as a going concern may be in “significant doubt.”In a statement to the Kuala Lumpur stock exchange, Ernst & Young said AirAsia’s current liabilities already exceeded its current assets by 1.84 billion ringgit ($430 million) at the end of 2019, a year when it posted a 283 million ringgit net loss. That was before the coronavirus crisis, which has further hit the carrier’s financial performance and cash flow.Trading was halted Wednesday until 2:30 p.m.The slump in air travel and poor financial performance “indicate existence of material uncertainties that may cast significant doubt on the Group’s and the Company’s ability to continue as a going concern,” Ernst & Young said in its unqualified audit opinion statement.Covid-19 plunged the aviation industry globally into crisis as border controls and health concerns vaporized demand for air travel. AirAsia on Monday reported a record quarterly loss of 803.8 million ringgit. It wasn’t until late March and the end of the quarter that the budget airline suspended flights.“This is by far the biggest challenge we have faced since we began in 2001,” AirAsia’s Chief Executive Officer Tony Fernandes said in a statement Monday.He said the carrier is in talks for joint-ventures and collaborations that may result in additional investment, and it has also applied for bank loans and is weighing proposals to raise capital.A person with knowledge of the matter said Wednesday the airline is considering raising about 1 billion ringgit through a rights issue. It is also weighing stake sales in its digital and cargo units, the person said, asking not to be identified as the information is private.AirAsia Is Said to Weigh Rights Issue, Unit Sales Amid Slump Last month, South Korean conglomerate SK Group said it was reviewing a proposal to buy a small stake in the airline. In May, AirAsia sent a memo to Malaysian banks seeking to borrow 1 billion ringgit, people familiar with the matter said at the time.AirAsia said in an exchange filing Wednesday that Ernst & Young’s statement and a decline in shareholder equity triggered the criteria for a so-called Practice Note 17, which applies to financially distressed companies. However, the airline won’t be classified as PN17 as the Malaysian exchange suspended application of the status from April through June next year as part of relief measures in light of the coronavirus pandemic.AirAsia needs at least 2 billion ringgit this year to stay afloat, according to K. Ajith, an aviation analyst at UOB Kay Hian Pte in Singapore.“There’s not a lot of options, and the best one could be the government stepping in but seeking a rights offering by the company in exchange,” he said.Despite the warnings, there are signs of improvement with the gradual lifting of restrictions on interstate travel and domestic tourism activities in the countries where AirAsia and its units operate, Ernst & Young said.The airline’s recovery depends on government policies on travel, discussions with financial institutions and investors and its ability to address concerns of its liabilities, the auditor said. as(Updates with fundraising plans in eighth paragraph.)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Shares in Malaysia's AirAsia Group Bhd <AIRA.KL> tumbled more than 17% on Wednesday in their biggest daily fall after the auditor cast doubt on the budget carrier's ability to continue as a going concern due to the coronavirus travel slump. Auditors EY issued an audit opinion stating the airline's 2019 earnings were prepared on a going concern basis, which is dependent upon a recovery from the COVID-19 pandemic and the success of fundraising efforts. AirAsia said in response that Malaysia's stock exchange had granted it 12 months relief from being classified as a financially distressed firm, a classification that would require it to submit a business improvement plan.
Malaysia's flagship budget carrier AirAsia Group Bhd expects its 2020 capacity to be just 45%-60% of last year's levels due to the coronavirus outbreak and to fill 70-75% of seats this year compared with the usual 85%. AirAsia expects travel demand to rebound to an extent in 2021, with capacity reaching 85% of its 2019 levels and load factor, a measure of the percentage of seats filled, returning to 85% in 2021, according to the presentation. AirAsia posted a loss of 803.3 million ringgit ($187.91 million) for the quarter ended March, from 96.1 million ringgit net profit in the year-ago period.
Airbus is ready to sue airlines that refuse to honour contracts to take aircraft, its chief executive was quoted on Friday as saying, raising the stakes in a stand-off between some manufacturers and airlines over the corornavirus crisis. The warning came as Airbus prepared to unveil what industry sources expected to be another weak month of delivery data. Planemakers and lessors have received multiple requests from airlines to delay deliveries due to the slump in air travel.
Airbus has put six jets made for one of its largest customers up for sale after giving up on Malaysia's AirAsia taking delivery of them, sources familiar with the matter told Reuters. Like other airlines looking to save cash amid lockdowns and travel bans that have crippled their business, AirAsia has said it doesn't need any more aircraft this year. Manufacturers usually insist an airline takes delivery of jets that have been built, while showing flexibility on delivery dates of planes yet to be produced, especially for top clients.
The founders of Malaysia's AirAsia Group Bhd will not take salaries and its staff has agreed to an as much as 75% cut in pay due to the impact of the novel coronavirus outbreak on the airline, its chief executive said late on Saturday. Tony Fernandes said in an Instagram post that he and Executive Chairman Kamarudin Meranun "will not be taking a salary during this period", while staff from across the business "have accepted temporary pay reductions of anywhere between 15-75%, depending on seniority, to share the impact this is having on our business". The budget airline has no incoming revenue and 96% of its fleet is grounded, Fernandes said.
AirAsia Group Bhd said on Friday an independent probe into corruption allegations from Britain's Serious Fraud Office (SFO) has found the Malaysian airline's procurement process with European planemaker Airbus SE robust and justifiable. In a filing to the stock exchange, AirAsia said Airbus' sponsorship of a sports team the airline's top executives co-owned was at the relevant time disclosed to and supported by the board of AirAsia Bhd (AAB), since renamed AirAsia Group.
KUALA LUMPUR/SYDNEY (Reuters) - Malaysian long-haul budget airline AirAsia X said it will defer delivery of 78 Airbus SE A330neo planes and consider other changes to reduce its fleet, as the coronavirus outbreak adds pressure on the loss-making carrier. AirAsia X said late on Thursday it might sell two A330s that could fetch up to $100 million and return five others to lessors early, adding it was already in negotiations with lessors about a targeted 30% cut in lease rates. AirAsia X flagged lower forward bookings and pressure on fares in the presentation.
Malaysia's Prime Minister Mahathir Mohamad on Friday sought to clarify comments he made on bribery allegations linked to AirAsia Group. A statement from Mahathir's office said he had not intended to describe the alleged bribery as offset payments and that it would be up to investigators to determine the matter. Offset is a common industrial practice in which in return for buying equipment from a foreign supplier, the buyer requests the deal provide support for the domestic economy by, for example, sourcing or manufacturing components locally.
Malaysian Prime Minister Mahathir Mohamad said on Thursday payments received to offset the costs of a high-value order could not be constituted as a bribe. Mahathir was replying to questions by reporters on the controversial sponsorship deal that executives of Malaysia's AirAsia Group Bhd struck with the budget carrier's sole plane supplier Airbus. Britain's Serious Fraud Office (SFO) said last week that the European aircraft manufacturer paid a bribe of $50 million to executives of AirAsia and its long-haul arm AirAsia X to win plane orders.
Malaysian long-haul budget airline AirAsia X has formed a board committee to review corruption allegations by Britain's Serious Fraud Office (SFO), a stock exchange filing showed on Wednesday. The AirAsia X committee will comprise non-executive members of the board excluding Kamarudin Meranun and Tony Fernandes, who are co-founders of its parent company AirAsia Group, the filing with the Bursa Malaysia said.
AirAsia Group Bhd's Tony Fernandes on Tuesday denied a now-defunct Formula 1 racing team formerly co-owned by him had any links to a bribery scandal involving the Malaysian airline's only plane supplier, Airbus SE. Fernandes, one of the aviation industry's best-known faces, on Monday stepped aside as chief executive of Asia's biggest budget airline for at least two months, as authorities investigate allegations that Airbus paid a bribe of $50 million through sponsorship of the Caterham F1 team to win orders from AirAsia. AirAsia Chairman Kamarudin Meranun also stepped down along with Fernandes, though both will remain advisers.
AirAsia Group CEO Tony Fernandes and Chairman Kamarudin Meranun will step aside for at least two months while the airline and authorities investigate allegations Airbus paid a bribe of $50 million to win plane orders from the company. A committee comprising the non-executive members of AirAsia's board will review the allegations and take any necessary action, Asia's biggest budget airline said on Monday. Fernandes, one of the aviation industry's best known executives, and Kamarudin will remain advisers, however, "in view of the current difficult economic circumstances facing the airline industry", the company added.
Shares of Malaysia's AirAsia Group <AIRA.KL> and unit AirAsia X <AIRX.KL> fell on Monday, after allegations by Britain's Serious Fraud Office that Airbus <AIR.PA> paid a bribe of $50 million to win plane orders from Asia's largest budget airline group. AirAsia shares fell as much as 11% to 1.27 ringgit - their lowest since May 2016 - while those of AirAsia X tanked 12% to their all-time low of 11.5 Malaysian sen. Malaysia's anti-graft agency is investigating the allegations from Britain.
Malaysia's securities regulator said on Sunday it will examine whether AirAsia Group and unit AirAsia X broke securities laws, after UK prosecutors accused executives of receiving bribes from Airbus for buying planes. The allegations came to light on Friday when Airbus agreed a record $4 billion settlement with France, Britain and the United States. Britain's Serious Fraud Office (SFO) said on Friday that between October 2013 and January 2015, Airbus's then-parent EADS paid $50 million to sponsor a sports team that was jointly owned by two people described as AirAsia Executive 1 and Executive 2.
Malaysia's anti-graft agency is investigating allegations by Britain's Serious Fraud Office that Airbus paid a bribe of $50 million to win plane orders from Asia’s largest budget airline group, Malaysia-based AirAsia, it said on Saturday. The SFO said on Friday that Airbus had failed to prevent individuals associated with it bribing executives linked to AirAsia Group and its long-haul arm, AirAsia X. AirAsia said it had never made any purchase decisions that were premised on an Airbus sponsorship, and that it would fully cooperate with Malaysia's Anti-Corruption Commission.
SINGAPORE/KUALA LUMPUR (Reuters) - Ride-hailing group Grab, gaming firm Razer, AirAsia, telecoms firm Axiata and lender CIMB are among companies looking to apply for digital banking licences in Malaysia, sources told Reuters. Some of these companies have begun talking to consultancies as they explore a possible foray into digital banking, the people familiar with the matter said. This month Singapore said it received 21 applications for five digital bank licences.
The "AirAsia Google Cloud Academy" will be managed by AirAsia's venture fund RedBeat Ventures and Google Cloud, according to CNBC. The academy will be opened to all AirAsia employees in February, who want to gain technology skills to better suit AirAsia's "current and future business operations," AirAsia Group President Aireen Omar told The Nikkei Asian Review.
Tony Fernandes is evidently having a lot of fun transforming AirAsia Group into more than just an airline business. Having just launched the first fast-food chain featuring airline food last week, the group CEO unveiled at a press briefing in Kuala Lumpur on Friday a new music label, RedRecords, in partnership with Universal Music Group. […]
Airline food has long been the butt of travellers' jokes, but Malaysia's AirAsia Group Bhd is seeking to turn that notion on its head - opening its first restaurant on Monday featuring dishes based on its in-flight menu. AirAsia group CEO Tony Fernandes is so confident the carrier's Southeast Asian fare will be popular with diners on the ground that he is aiming to franchise the concept internationally, with a New York outlet an ultimate goal. General Manager of Santan Restaurant and T&CO Cafe, Catherine Goh, said 30% of the restaurant's menu come from AirAsia's existing in-flight menu, which includes classics such as Pak Nasser's nasi lemak, a signature Malaysian rice dish with chilli condiment.
Malaysia's flagship budget airline AirAsia Group Bhd flipped to a loss in its third-quarter, hit by foreign exchange losses and a writedown in the value of currency and interest rate swaps. It posted on Wednesday a net loss of 51.4 million ringgit ($12.3 million) for the three-month period ended September, from 915.9 million ringgit net profit in the year ago period. Revenue was 17.5% higher at 3.1 billion ringgit, however.
AirAsia.com on Friday added the flights of other carriers through a partnership with travel tech company Kiwi.com. In a white label arrangement, Kiwi.com supplies the content and technology to enable AirAsia.com’s users to book travel on more than 100 airlines to destinations currently not served by AirAsia in Europe, Australia, New Zealand, the Middle East, […]