AirAsia privatisation under consideration

Speculation continues in Malaysia regarding the privatization of AirAsia, as the low-cost carrier’s largest single shareholder, Tune Air, considers its options.

AirAsia released a statement to Malaysia’s stock exchange, in which it said: “This option is still being developed….subject to the availability of financing on acceptable terms from financial institutions and other potential investors in these challenging times, as well as conducive market and industry conditions.”

In a report published in The Edge, it was suggested that the group CEO for AirAsia, Tony Fernandes, and his associates were lining up regional, long-term investors to purchase shares in the airline, in preparation for the privatization plan’s approval.

Fernandes and Kamarudin Meranun, the AirAsia executive director and deputy CEO, control Tune Air.

On Thursday, Fernandes said that AirAsia is considering Africa and the US in its route expansion plans. The CEO noted that he is especially interested in Hawaii as a new long-haul destination for the carrier.

“We are going to Europe soon with AirAsia X so we want to expand next to the United States and South Africa. We want a strong presence in these three continents,” the CEO added.

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