AirAsia X launches up to $370 mln IPO amid fleet expansion

Reuters 10 June 2013
Malaysian long-haul budget carrier AirAsia X launched an up to $370 million initial public offering on Monday, seeking funds for its fleet expansion as it targets buoyant travel demand in Asia-Pacific and looks to fend off regional rivals.
The carrier, which competes with Singapore Airlines’ Scoot and Qantas Airways’ Jetstar, has said it plans to add 13 Airbus A330 wide-bodied planes in total this year and next to take its fleet to 23 aircraft by 2014.
The expansion comes as passenger traffic in the Asia-Pacific region more doubled between 1998 and 2012, putting air travel activity in the region on par with North America, according to figures from research firm Strategic Airport Planning Ltd, which were cited in AirAsia X’s preliminary IPO prospectus.
“The focus in on the sweet-spot flights of 4 to 8, or possibly 9 hours,” Tony Fernandes, AirAsia X’s founder, told reporters at the IPO launch. He added that AirAsia X plans to strengthen its position in its key markets in Australia and East Asia.
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