Published: 8/03/2011 at 12:00 AM
Newspaper section: Business
Thai AirAsia (TAA)'s long-awaited initial public offering (IPO) has been set in motion as the country's largest low-cost carrier moves to raise up to 6 billion baht in the fourth quarter to support its growth plan.
‘‘We are confident this is the right time to access the capital markets for further expansion,’’ says Mr Tassapon. The IPO will result in TAA’s two existing shareholder groups — AirAsia Bhd (49%) and TAA’s six Thai directors includingMr Tassapon (51%) — diluting their share holding to allow members of the public to hold a25% stake.
TAA, the sister carrier of AirAsia, Southeast Asia's largest low-cost carrier based in Malaysia, yesterday named Credit Suisse Securities (Thailand), CIMB Securities (Thailand) Ltd and Thanachart Securities Plc as lead underwriters for the planned IPO.
The decision to list was due to TAA's improved performance last year and a positive outlook in the years ahead.
"We are confident this is the right time to access the capital markets for further expansion," said TAA chief executive Tassapon Bijleveld.
The IPO will result in TAA's two existing shareholder groups - AirAsia Bhd (holding 49%) and TAA's six Thai directors including Mr Tassapon (51%) - diluting their shares to allow members of the public to hold a 25% stake.
TTA posted a net profit of 2.84 billion baht last year, a turnaround from a 933-million-baht loss in 2009 caused largely by the penalty payment from the early return of its eight B737 jets to the aircraft lessor.
Its 2010 revenues leapt 33% to 12.40 billion baht and the airline carried a total of 5.8 million passengers last year, up from 5 million in 2009, with a load factor of 78% compared to 76% in the previous year.
Ancillary income, derived from sales such as in-flight food and beverage and regarded as the airline's bottom line, also rose to 310 baht per passenger, 62% growth over the previous year.
TAA's operation relies on its ability to generate cash in hand as banks have been reluctant to extend financing to the airline, he said.
TAA, which has been in operation for seven years, has more than 1 billion baht in cash in hand and Mr Tassapon wants to increase it to 8-10 billion baht in the next five years.
The capital increase will enable TAA to expedite expansion, possibly increasing its fleet, he added.
TAA still awaits delivery of another 20 Airbus 320s over the next five years, out of 40 ordered through a lease arranged by AirAsia. It will receive two more A320s this year, bumping its fleet to 24 jets.
The airline expects to carry 7 million passengers this year, ramping up its revenue to 15 billion baht on the expectation the Thai economy will remain buoyant throughout 2011.
There is further room for the market to expand as there is strong demand for travel in the Asia-Pacific region, Mr Tassapon added.
However, soaring fuel prices and political and economic uncertainties continue to be risk factors.
Credit: Bangkok Post (www.bangkokpost.com)
No comments:
Post a Comment