AirAsia and Thai AirAsia aim to list

The Malaysia-based no-frills airline group AirAsia and its Thai affiliate have set their sights on separate listings on the Stock Exchange of Thailand (SET) to raise funds to support their aggressive expansion plans.

AirAsia group chief executive Tony Fernandes and Thai AirAsia chief executive Tassapon Bijleveld separately declared their intention to tap the Bangkok stock market.

The budget airline's Indonesian arm, Indonesia AirAsia, would also be listed on the Jakarta Stock Exchange later, as part of the group's common aim to turn all of its airlines into publicly traded companies.

AirAsia Bhd, which is already listed in Kuala Lumpur, is pursuing a dual listing on the SET, while Bangkok-based Thai AirAsia, 49% owned by AirAsia Bhd, has been in discussions with the SET and securities firms about its entry into the Thai stock market.

Mr Tassapon yesterday confirmed the plans of AirAsia and Thai AirAsia to list on the SET but said it was premature to discuss details such as the size of public offering, share price and timing.

"We are in the conceptual stage. We are looking at processes and options available to us," he told the Bangkok Post yesterday.

While Mr Fernandes did not indicate the timing for listing AirAsia, Thai AirAsia was looking at getting listed in 2010 or 2011, said the Thai executive.

AirAsia has hired CIMB Investment Bank Bhd, part of Malaysia's second-largest bank CIMB Group Holdings, as lead arranger for the Thai stock listing.

Thai AirAsia has been in contact with several local securities firms to get proposals for assuming a similar role.

By listing in the three Asian stock markets, Asia's largest low-cost carrier group hopes to gain synergy and to enhance the airlines' Asean identity, said Mr Tassapon.

Asked whether the failure of Thai AirAsia to report profits for three consecutive years would disqualify it from a SET listing, he said there was leeway in the regulations that would make it possible.

AirAsia is taking advantage of the SET's recent permission for foreign companies to list from Dec 1. CIMB, which is the major shareholder in CIMB Thai Bank Plc, formerly BankThai, has said it aims to be the first company to take advantage of the new rule.

SET president Patareeya Benjapolchai said the rule change would encourage companies in the region to have their shares traded in other stock exchanges than in their home countries.

AirAsia has been expanding rapidly since 2001, winning awards and becoming Asia's largest low-cost carrier.

With a fleet of 72 aircraft, AirAsia flies to 61 domestic and international destinations. It has 108 routes and operates more than 400 flights daily from hubs in Malaysia, Thailand and Indonesia.

To date, AirAsia has flown more than 55 million passengers across the region. The company continues to expand through its Thai and Indonesian units.

AirAsia reported a net profit of 130 million ringgit (1.276 billion baht) in July-September, against a loss of 465.5 million ringgit (4.568 billion baht) a year earlier, helped by higher sales of non-ticket items.

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