ArrowArtboardCreated with Sketch.Title ChevronTitle ChevronEye IconIcon FacebookIcon LinkedinIcon Mail ContactPath LayerIcon MailPositive ArrowIcon PrintSite TitleTitle ChevronIcon Twitter
Transportation

AirAsia Group Bhd.

Company Background

From its beginnings with just two jets and debt of $11 million in 2001, AirAsia has grown to become a profitable short-haul budget carrier in Asia with a fleet of close to 200 aircraft. The group operates mainly in Asia-Pacific region, including operations in Indonesia, the Philippines and Thailand. AirAsia recently launched AirAsia India in an alliance with Tata Group, plying India's domestic market. It is also seeking a re-entry into Japan in a tie-up with Rakuten Japan, after its first joint venture with All Nippon Airways broke up in 2013.

 

AirAsia is 23% owned by Tune Air, a private company controlled by Group CEO Tony Fernandes, a former executive of music producer Time Warner. Inspired by the success of its peer Ryanair in Europe, he runs the airline strictly adhering to the low-cost and no-frills business model, and made flying affordable to many in Asia. AirAsia's success has led to the burgeoning of budget carriers in the region, many of which are owned by full-service airline companies. The group recently introduced premium services targeting business travelers and parcel delivery services to boost its ancillary income. Its listed associate, AirAsia X, is a long-haul budget carrier, flying all over Asia.

Business Summary

AirAsia Group Bhd. engages in the provision of air transportation services. It operates through the following geographical segments: Malaysia, Thailand, and Indonesia. The company was founded by Abdel Aziz bin Abu Bakar, Anthony Francis Fernandes, Conor John McCarthy, and Kamarudin bin Meranum in 1993 and is headquartered in Kuala Lumpur, Malaysia.

Financial Highlights

Dec 2019 MYRUSD
Revenue12,706.15M3,066.91M
Gross Profit969.61M234.03M
Operating income388.12M93.68M
Income before tax-68.18M-16.45M
Net income-303.72M-73.31M
EBITDA2,376.21M573.55M
Diluted EPS-0.09-0.02
Dividends Per Share00
Total Assets25,146.59M6,147.56M
Total liabilities22,293.53M5,450.07M
Total equity4,440.26M1,085.50M
Operating cash flow3,721.78M898.33M
Currency in MYRCurrency in USD

Historical Data

 Dec 2015Dec 2016Dec 2017Dec 2018Dec 2019
Revenue 6,297.65M 6,846.08M 9,709.72M 10,638.29M 12,706.15M
Gross Profit 1,621.65M 1,995.88M 1,853.18M 805.14M 969.61M
Operating income 1,351.18M 1,879.09M 1,629.40M 25.66M 388.12M
Income before tax 215.15M 1,704.69M 2,087.78M 1,335.23M -68.18M
Net income 541.19M 1,621.65M 1,628.77M 1,967.00M -303.72M
EBITDA 2,054.44M 2,590.21M 2,493.67M 611.01M 2,376.21M
Diluted EPS 0.19 0.58 0.49 0.58 -0.09
Dividends Per Share 0.04 0.12 0.12 0.24 0
Total Assets 21,888.23M 23,653.45M 23,528.26M 19,446.59M 25,146.59M
Total liabilities 17,437.38M 17,025.67M 16,818.18M 13,261.32M 22,293.53M
Total equity 4,452.32M 6,632.98M 8,048.11M 7,784.45M 4,440.26M
Operating cash flow 2,256.14M 2,244.77M 2,052.46M 524.07M 3,721.78M
 Dec 2015Dec 2016Dec 2017Dec 2018Dec 2019
Revenue 1,610.78M 1,652.56M 2,258.32M 2,636.25M 3,066.91M
Gross Profit 414.78M 481.78M 431.02M 199.52M 234.03M
Operating income 345.59M 453.58M 378.97M 6.35M 93.68M
Income before tax 55.03M 411.49M 485.58M 330.88M -16.45M
Net income 138.42M 391.44M 378.82M 487.44M -73.31M
EBITDA 525.47M 625.24M 579.99M 151.41M 573.55M
Diluted EPS 0.04 0.14 0.11 0.14 -0.02
Dividends Per Share 0.01 0.02 0.02 0.05 0
Total Assets 5,097.99M 5,272.72M 5,813.75M 4,705.76M 6,147.56M
Total liabilities 4,061.34M 3,795.29M 4,155.71M 3,209.03M 5,450.07M
Total equity 1,036.99M 1,478.59M 1,988.66M 1,883.71M 1,085.50M
Operating cash flow 577.06M 541.86M 477.37M 129.87M 898.33M

Valuation Measures

Dec 2019
PER--
ROA-1.36%
ROE-4.96%
Operating margin3.05%
Profit margin-2.39%

Key executives

  • Chief Executive Officer: Tharumalingam Kanagalingam
  • Chief Operating Officer: Adrian Jenkins
  • Group Chief Financial Officer: Pattra Boosarawongse
  • Group Head-Information & Communication Technology: Kin Choy Lau
  • Head-Engineering: Nadzri Hashim

Shareholders

  • Tune Live Sdn. Bhd. (16.7%)
  • Tune Air Sdn Bhd (15.4%)
  • Permodalan Nasional Bhd. (7.4%)
  • Employees Provident Fund (4.7%)
  • AIA Bhd. (2.1%)
  • The Vanguard Group, Inc. (1.7%)
  • Dimensional Fund Advisors LP (1.5%)
  • W97n Emerging Markets Opportunities Portfolio (1.1%)
  • Saudi Arabian Monetary Agency (Investment Management) (1.0%)
  • Eastspring Investments (Singapore) Ltd. (0.9%)

Contact Details

  • Website:http://www.airasia.com
  • Address: RedQ, Jalan Pekeliling 5, Kuala Lumpur, 64000, Malaysia
  • Phone: +60.3.8660.4333

Related Companies

  • Teleport Commerce Malaysia Sdn. Bhd.
  • Merah Aviation Asset Holding Ltd.
  • Redbeat Ventures Sdn. Bhd.
  • Airasia Bhd.
  • RedTix Sdn. Bhd.
  • Koolred Sdn. Bhd.
  • Asia Aviation Capital Ltd.
  • AirAsia (India) Pvt Ltd.
  • AirAsia Megastore Sdn. Bhd.
  • AirAsia Asean, Inc.
  • AirAsia, Inc.
  • Tune Box Sdn. Bhd.
  • AirAsia (Mauritius) Ltd.
  • AirAsia Go Holiday Co. Ltd.
  • AirAsia Go Holiday Sdn. Bhd.
  • AirAsia Exp Pte Ltd.
  • AirAsia Investment Ltd.
  • Tune Hotels Sdn. Bhd.
  • AA International Ltd.
  • Aras Sejagat Sdn. Bhd.
  • Crunchtime Culinary Services Sdn. Bhd.

Competitors

  • Cebu Air Inc.
  • Bangkok Airways Public Co., Ltd.
  • PT Garuda Indonesia (Persero) Tbk Class B
  • PAL Holdings, Inc.
  • SpiceJet Limited
  • Vietjet Aviation JSC
  • Thai Airways International Public Co. Ltd.
  • China Southern Airlines Company Limited Class H
  • China Eastern Airlines Corporation Limited Class H
  • Singapore Airlines Ltd.
  • El Al Israel Airlines Ltd
  • Nok Airlines Public Co., Ltd.
  • Spring Airlines Co., Ltd. Class A
  • InterGlobe Aviation Ltd
  • Ryanair Holdings Plc
  • Qantas Airways Limited
  • JG Summit Holdings Inc.
  • International Consolidated Airlines Group SA
  • Controladora Vuela Compania de Aviacion SAB de CV Class A
Last Updated on 8 Jul, 2020

You have {{numberArticlesLeft}} free article{{numberArticlesLeft-plural}} left this monthThis is your last free article this month

Stay ahead with our exclusives on Asia;
the most dynamic market in the world.

Stay ahead with our exclusives on Asia

Get trusted insights from experts within Asia itself.

Get trusted insights from experts
within Asia itself.

Get Unlimited access

You have {{numberArticlesLeft}} free article{{numberArticlesLeft-plural}} left this month

This is your last free article this month

Stay ahead with our exclusives on Asia; the most
dynamic market in the world
.

Get trusted insights from experts
within Asia itself.

Try 3 months for $9

Offer ends July 31st

Your trial period has expired

You need a subscription to...

  • Read all stories with unlimited access
  • Use our mobile and tablet apps
See all offers and subscribe

Your full access to the Nikkei Asian Review has expired

You need a subscription to:

  • Read all stories with unlimited access
  • Use our mobile and tablet apps
See all offers
NAR on print phone, device, and tablet media