AirAsia's co-founder Tony Fernandes has announced plans to launch a new airline in the near future. The company is in the process of moving some aircraft to support this new venture, which is expected to be officially revealed within the next one or two months.
Simultaneously, AirAsia is expanding its fleet by ordering 150 Airbus SE A220 aircraft, marking the largest purchase of Canadian-made commercial aircraft. This move aligns with their strategy to grow their fleet of smaller, versatile aircraft to serve destinations across Asia.
Fernandes emphasized the company's stance against fuel hedging, citing its impact on share performance amid geopolitical tensions. He remains optimistic that oil prices will decrease over time. To fund these initiatives, AirAsia aims to raise up to US$600 million through bonds and is negotiating with Malaysian banks for refinancing loans to lower interest expenses. The airline also plans to attract investment from Canadian pension funds, supporting its growth ambitions.
The expansion includes potential operations in Vietnam and flights departing from Bahrain, where AirAsia intends to establish a local base. Despite short-term profit targets not being met, Fernandes indicated that revenue projections for the year remain consistent with earlier forecasts. The airline's current fleet includes approximately 250 aircraft operating mainly within Malaysia, Thailand, and Indonesia, with a backlog of around 550 single-aisle jets following their recent orders. These moves aim to position AirAsia favorably amidst current geopolitical and economic challenges.
