Category Archives: AirAsia X (Indonesia)

AirAsia reports improved results in the first quarter of 2022

Capital A Berhad (formerly known as AirAsia Group Berhad) (“Capital A” or the “Group”) presents the following operating statistics for its airline business for the First Quarter of the Financial Year 2022 (“1Q2022”).

Capital A Berhad Consolidated AOCs¹ has posted another significantly improved result across key operational metrics including a healthy load factor of 76% and capacity of 4.9 million passengers carried respectively in 1Q2022. The number of passengers carried has increased by 284% to 3.7 million year-on-year (“YoY”) in 1Q2022 leading to a 9 percentage points (“ppts”) improvement in load factor. The Group introduced additional capacity of 238% YoY to support the surge in demand, alongside relaxed travel restrictions across the Group. As a result, Available Seat Kilometres (“ASK”) soared by 223% and Revenue Passenger Kilometres (“RPK”) jumped by 264% YoY, primarily attributable to the strong domestic travel rebound and the gradual further easing of travel restrictions in 1Q2022.

For AirAsia Malaysia, the number of passengers carried and the capacity improvement jumped 464% and 455% respectively, compared to the same quarter in the previous year, off the back of the resumption of a significant number of additional domestic flights and the relaunch of numerous domestic routes to connect people between major cities, particularly during the festive season. In 1Q2022, the load factor increased by 1 ppt YoY to 74%. ASK jumped 475% and RPK jumped 476% YoY. These very promising achievements were driven by added frequencies of domestic flights in line with increased demand and were also attributed to the promotional campaigns that took place in 1Q2022.

AirAsia Indonesia also achieved a much improved load factor of 76% in 1Q2022, which surged 20 ppts YoY. Passengers carried and capacity improved by 126% and 141% quarter-on-quarter (“QoQ”), respectively, off the back of additional frequency added for domestic flights, particularly Jakarta to Denpasar and between Jakarta and Medan, to meet huge pent-up demand. The RPK surged 129% to 436 million from 190 million QoQ and increased 22% YoY from 357 million in the quarter.

AirAsia Philippines has continued to record the Group’s highest quarterly load factor at 86%, which rose by 12 ppts YoY, uninterrupted by the steep rise of Omicron variant cases in the Philippines during the quarter. In 1Q2022, the number of seats sold and capacity increased 233% and 186% respectively, compared to the same period last year. Similarly, ASK and the number of flights flown rocketed 203% and 186% YoY, with the support of the huge summer demand following the Philippines Government’s confirmation of further relaxed travel protocols.

In 1Q2022, AirAsia Thailand carried 1.45 million passengers, up 48 ppts YoY, an impressive increase over the past two consecutive quarters, mainly due to a strong recovery in travel demand and the easing of the entry rules as well as the reopening of the Thailand Pass (Test & Go). Noticeably, international tourist arrivals to Thailand increased as a consequence. Furthermore, AirAsia Thailand has increased its flight frequency and routes to cater for the evolving resurgence in travel demand, eventuating in a 32% growth in flights flown to 11,002 flights, in part, from a resumption of international flights. Similarly, the ASK and the seating capacity also improved by 34% on a robust rebound. Moreover, AirAsia Thailand has reallocated its capacity and flights to align with the reviving demand. As a result, the load factor in the reporting quarter was recorded at 73%, rising 7 ppts from the same period last year.

Capital A Berhad Consolidated AOCs – Malaysia, Indonesia & Philippines
1st Quarter 2022 Operating Statistics

Note: (i) The fleet count excludes:
– Two (2) A320 aircraft leased to a third party airline

Malaysia
1st Quarter 2022 Operating Statistics

Note: (ii) The fleet count excludes:
– Two (2) A320 aircraft leased to a third party airline

Indonesia
1st Quarter 2022 Operating Statistics

Philippines
1st Quarter 2022 Operating Statistics

Thailand
1st Quarter 2022 Operating Statistics

1. Number of earned seats flown. Earned seats comprise seats sold to passengers (including no-shows)
2. Number of seats flown
3. Number of Passengers Carried as a percentage of Capacity
4. Available Seat Kilometres (ASK) measures an airline’s passenger capacity. Total seats flown multiplied by the number of kilometres flown
5. Revenue Passenger Kilometres (RPK) is a measure of the volume of passengers carried by the airline. Number of passengers multiplied by the number of kilometres these passengers have flown
6. Number of flights flown
7. Number of aircraft including spares

¹ Capital A Berhad Consolidated AOCs refers to AOCs whose financial and operational results are consolidated for financial reporting purposes and these are the Malaysian, Indonesian and Philippines AOCs.

History of AirAsia liveries:

 

AirAsia Group is now Capital A

AirAsia Group Berhad has announced a name change for the group holding company to become Capital A Berhad (Capital A or the Group).

The name change reflects the Group’s new core business strategy as an investment holding company with a portfolio of synergistic travel and lifestyle businesses, which have rapidly transformed the AirAsia brand into much more than just an airline.

CEO of Capital A, Tony Fernandes said: “This is not just about unveiling a new logo. It’s a significant milestone that marks a new era for the Group. Today’s announcement reinforces we are not just an airline anymore.

“While the airline will always underpin the AirAsia brand, it has long been my firm intention, well before Covid hit, to leverage the strong data we have built up over 20 years and incorporate industry-leading new technologies to offer a broad range of products and services, over and above selling just airfares. The pandemic has allowed us to accelerate that strategy.

“Our brand has continuously evolved based on driving innovation and meeting ever changing consumer demand. The strategy behind the change of name is to introduce a new corporate identity that better reflects the Group’s core businesses today and its future undertakings, in tandem with our rapid transformation from an airline into a one-stop digital travel and lifestyle services group. We believe that the new company name will also further enhance the marketability of our products and boost the success of our Group for the long haul.

“Essentially Capital A is an investment company with a broad portfolio of businesses which all deliver the best value at the lowest cost, supported by strong data built up over two decades. We also have one of Asia’s leading brands to ride on, a strong people-first culture and an underlying promise of remaining committed to serving the underserved in all that we do. Just like what the airline has done from day one, all of our different lines of business will deliver the same strategy that is underscored by doing what we do best – making travel and everyday lifestyle services affordable, accessible and inclusive to all.

“We are now delivering more products and services under one umbrella than any other brand in Asean and with access to over 700 million people in the region, I foresee incredible growth opportunities for our brand across many different industries in all of our core markets.

“We have 16 products and services on our airasia Super App, providing not only the best value flight and travel deals but also everyday lifestyle needs, from food to retail and e-commerce, to same day delivery, ride hailing and much more. We are already one of the top three online travel agents (OTAs) in Asean and our super app is on track to become the leading lifestyle app in the region very soon.

“All of our portfolio businesses are well on the way to becoming industry leaders in their respective fields across Southeast Asia, including BigPay, our aircraft engineering division Asia Digital Engineering (ADE) and logistics venture Teleport.

“We already have over 50 million monthly unique visitors on our super app which has been recognised as a tech unicorn in under two years, our fintech business BigPay, has been given a significant injection of USD $100million from South Korea conglomerate SK Group and overall we have raised over RM2.5 billion to date through our fundraising strategy. Following strong consumer and investor support for our transformation strategy, we now set our sights on further capital raising initiatives for the airasia Super App, Teleport and ADE which will be announced in due course.”

On the airline, Tony commented: “While Capital A will be the new Group holding company name, one thing that isn’t changing is the AirAsia brand name for our airlines. It’s one of the strongest brands in Asia and provides a solid platform for all of our other products and services to leverage from each other.

“Even though the last two years have been the most difficult and disrupted years in the history of commercial aviation, I welcome the year ahead with much greater confidence. Domestic air travel has already started to rebound in our key markets. While there may be some delays for international flights to return to pre-Covid levels due to the Omicron variant, I believe this will be short-lived as many global health experts are also predicting, alongside accelerated vaccines and booster shots as well as the world gradually learning to live with Covid. I am hopeful borders will reopen gradually throughout 2022 and we will see a return to normal capacity for our international services by the middle to third quarter of this year.

“Over the past two years we have spent the downturn in flying building a solid foundation for a viable and successful future, which is not solely reliant on airfares alone. Capital A signals an exciting new era for our airlines and all of our other portfolio businesses within the Group as we embark on a significant new growth phase.

“Importantly, the best is yet to come. We have pivoted, we have transformed and we have a five year plan in place which will see non airline revenues contributing around 50 percent of overall Group revenue by 2026. Once the airlines return to pre-Covid levels in the near future all of our other lines of business will benefit significantly and will all soar to new heights in tandem with one another.”

By 2026 Capital A aims to achieve amongst others:

  • Group airlines connecting over 1 billion people in Asean.

  • The engineering division (ADE) becomes an industry leader for maintenance, repair and overhaul (MRO) services in Southeast Asia.

  • airasia Super App to be the super app of choice in Asean.

  • 10 million monthly active users for BigPay.

  • 10% market share in Southeast Asia for Teleport, in the logistics and e-commerce industry.

  • 5 million sign ups for edutech arm AirAsia Academy.

  • Over 21 million monthly orders on airasia grocer.

The new holding company name, Capital A, is immediately effective following the successful registration of the name by the Companies Commision of Malaysia announced on January 3 and the subsequent formal approvals received yesterday.

The name change from AirAsia Group Berhad to Capital A Berhad will not have any effect on the Company’s ongoing operations. The AirAsia stock name on the main Board of Bursa Malaysia Securities Berhad will change with immediate effect to reflect the new company name.

AirAsia liquidates AirAsia X Indonesia

AirAsia has decided to liquidate its Indonesia branch of AirAsia X in order to survive.

More: https://loyaltylobby.com/2020/10/18/airasia-x-indonesia-liquidates/

Indonesia AirAsia Extra, operating as Indonesia AirAsia X, was a joint venture of AirAsia X (Malaysia) and AirAsia (Indonesia). The airline previously ceased all operations on January 14, 2019.

In addition, AirAsia has also written down the value of AirAsia X Thailand to zero.

AirAsia X Thailand is a Thai long-haul low-fare airline headquartered and based at Don Mueang International Airport in Bangkok. It is a joint venture of AirAsia X (Malaysia) and Thai AirAsia.

AirAsia X (Malaysia) continues but is grounded and is restructuring.

Previously on October 6 AirAsia X (Malaysia) made this announcement:

AirAsia X Berhad (AirAsia X) announced a restructuring plan geared at facilitating an injection of fresh equity which will allow the airline to fly again. AirAsia X also appoints Dato’ Lim Kian Onn as the Deputy Chairman to lead the airline restructuring. He is a Chartered Accountant and was an investment banker. He has been a Board member of AirAsia X since 2012.

AirAsia X is facing severe liquidity constraints. Travel and border restrictions have grounded all scheduled flights and there is no imminent return to normalcy.

An imminent default of contractual commitments will precipitate a potential liquidation of the airline.

A major debt restructuring and a renegotiation of its financial obligations are pre-requisites for any raising of fresh equity which will be required to restart the airline.

For 13 years AirAsia X, as a market leader in medium-haul low-cost flying, has delivered affordable flights to many destinations and created jobs for the airline, related travel and tourism industries as well as contributing to Malaysia’s GDP growth.

The Board and management have assessed various options and propose a restructuring plan which if approved, will secure the airline’s continued ability to fly again. The plan includes:

A. Debt Restructuring Scheme

proposed debt settlement and waiver of debts involving unsecured creditors, aimed at enabling the Group to address its debt obligations in an orderly manner and to arrive at a debt structure that is sustainable from future operating cash flows;

B. Revision of the Group’s Business Plan

route network rationalisation, aircraft fleet right-sizing, cost base overhaul and workforce optimisation, all aimed at ensuring a leaner and more sustainable business going forward;

C. Engagement with Business Partners

key success factors to the proposed restructuring plan include the support from business partners to continue the long-term relationship pre- and post-restructuring.  AirAsia X continues to engage all key business partners and hopes to enter into contracts, agreements and/or arrangements that are reflective and supportive of the airline’s revised business plan upon successful completion of the restructuring which is critical to the future viability of the business;

D. Airline customer and Travel Agents

under the Proposed Scheme, AirAsia Unlimited Pass holders and guests with valid flight bookings will receive travel credits with extended validity for future travel or purchase of seat inventory.

The proposed restructuring plan and establishment of new contracts, agreements and/or arrangements based on terms to be agreed upon which are sustainable based on the Group’s revised business plan is aimed to right-size the Group’s level of operations and financial obligations, which is crucial to the Group’s continued existence in the aviation landscape. These exercises are pre-requisite for the raising of any fresh capital, comprising both equity and debt needed to implement the Group’s revised business plan.

In the last two months the Company has had extensive discussions with all major creditors. Whilst there are varying degrees of support for the restructuring scheme as has been proposed, all of them have expressed strong support for a continuation of the airline business.

AirAsia X CEO Benyamin Ismail said, “AirAsia X and other airlines the world over are struggling to survive amidst the global crisis of COVID-19 pandemic. We remain committed to our guests, Allstars, business partners and shareholders to ensure we build a viable and sustainable airline for the long-haul, and for the survival of this airline, the proposed restructuring plan is our only option.

“It has been extremely difficult for the airline during this period as we had to ground all scheduled flights, implement salary cuts and retrenchment for the first time in the company’s history as a consequence of the pandemic. Similar exercises are likely to continue during the restructuring process, but our focus is to ensure a successful restructuring to keep as many jobs as possible.

“We have a low cost base, we are in the right part of the market and many of our key markets are in green zones which are likely to reopen first. We have a robust recovery strategy in place, and with the continued support from our stakeholders, we will overcome all challenges and come out stronger.”

Benyamin Ismail also added, “In order to safeguard Malaysia’s vested interest through the aviation industry, regional air connectivity is essential for trade, businesses and economic growth, especially to our core markets of China, Japan, Korea and Australia where we have established a strong foothold. The closure of these markets can impact the stimulus spending, GDP contribution and employment within the supply chain of the aviation industry. As other airlines struggle in the current market condition, AirAsia X strives to emerge stronger once the market recovers.  Our immediate focus is to obtain all necessary approvals and execute the proposed restructuring plan over the next few months.

“Under the Proposed Scheme, AirAsia X Unlimited Pass holders and guests with valid flight bookings will receive travel credits with extended validity for future travel or purchase of seat inventory. We assure you that we will resume operations as soon as possible once the border restrictions are lifted. Your steadfast support is greatly appreciated.”

AirAsia X continuously reviews its network resumption timeline and has an ongoing dialogue with tourism and airport authorities, governments and other industry stakeholders to pave the way for the prospect of travel bubbles in green zone countries.

Despite the unprecedented setback brought by COVID-19, this also provides an opportunity for AirAsia X to transform and reinvent the product and business strategy to emerge in a stronger and more sustainable financial position, capable of attracting new equity and debt funding critical to the long-term viability and continuity of AirAsia X.

AirAsia X (Indonesia) (AirAsia.com) Airbus A330-343 PK-XRA (msn 716) DPS (Pascal Simon). Image: 939293.

Above Copyright Photo: AirAsia X (Indonesia) (AirAsia.com) Airbus A330-343 PK-XRA (msn 716) DPS (Pascal Simon). Image: 939293.