Tassapon Bijleveld, the chief executive of Thai AirAsia (TAA), yesterday disposed of some of his stake in Asia Aviation Plc (AAV) to raise 1.5 billion baht for new ventures including hotels and another airline.
Tassapon: Deal will not affect TAA growth
Mr Tassapon, 46, sold 235 million shares of AAV, the holding firm of TAA, to "fewer than 10" unnamed institutional investors in big-lot sales that effectively reduced his shareholding in AAV to 28.05% from 33%.
Proceeds from the shares, sold at a discount of 4-5% from their SET trading price, will be used for three projects that support TAA's growth plan.
They include an investment in a sister airline of long-haul discount carrier AirAsia X (AAX) in Thailand, two budget hotels in Bangkok and settling personal debts, Mr Tassapon told the Bangkok Post yesterday.
The share deal consolidates Mr Tassapon's personal portfolio as he seeks to create new synergy with TAA, which under his leadership has grown into the country's largest low-cost carrier in only nine years.
A new airline, tentatively known as AirAsia X Thailand, will be formed to serve as the local arm of Malaysia's AAX, the long-haul affiliate of the no-frills AirAsia Group.
Mr Tassapon said it is too early to discuss the shareholding structure of AAX Thailand, as its formation is still subject to government approval.
But insiders say AAX has sought Thai authorities' endorsement for an air operator's certificate to operate regular flights from Bangkok to South Korea and Japan.
The long-distance budget airline intends to deploy two Airbus 330-300 wide-body jets, configured with 377 seats - 12 in business and 365 economy - on those routes starting in October.
Its entry to Thailand would consolidate the AirAsia Group's position in Thailand, extending its network to cover cities up to 11 hours in flight time from Bangkok.
Short-haul operators such as TAA, Malaysia's AirAsia and Indonesia AirAsia have a maximum range of four hours from Bangkok with their narrow-body A320s.
Mr Tassapon said his hotel venture is on Bangkok's New Phetchaburi Road. One hotel is being renovated from an existing property, while the other will be built from scratch.
The budget hotels - one with 204 rooms and the other with 176 - will not be operated under the Tune Hotel brand created by AirAsia executives.
They will be operated by Accor, Europe's largest hotel management group, whose brands include the Ibis chain.
The hotels will be owned by a group of Thai shareholders, with Mr Tassapon as one of the major stakeholders.
After his share sale, Mr Tassapon remains the largest shareholder of AAV and will continue to serve as TAA chief.
"I can assure you the share sale will not affect TAA's growth and that I, along with other TAA founders, will do our best to ensure good performance for AAV," Mr Tassapon said.
AAV holds a 51% stake in TAA.