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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: Airline: Malaysia, Philippines, Thailand, Indonesia, India, and Japan; and Non-Airline. 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 2020 MYRUSD
Revenue3,131.21M745.13M
Gross Profit-2,324.99M-553.27M
Operating income-4,266.58M-1,015.31M
Income before tax-5,487.78M-1,305.92M
Net income-5,111.66M-1,216.42M
EBITDA-2,193.30M-521.94M
Diluted EPS-1.52-0.36
Dividends Per Share00
Total Assets19,664.05M4,888.51M
Total liabilities23,233.85M5,775.97M
Total equity-1,214.28M-301.87M
Operating cash flow-2,164.61M-515.11M
Currency in MYRCurrency in USD

Historical Data

 Dec 2016Dec 2017Dec 2018Dec 2019Dec 2020
Revenue 6,846.08M 9,709.72M 10,638.29M 11,860.40M 3,131.21M
Gross Profit 1,995.88M 1,853.18M 805.14M 1,226.23M -2,324.99M
Operating income 1,879.09M 1,629.40M 25.66M 75.75M -4,266.58M
Income before tax 1,704.69M 2,087.78M 1,335.23M -72.78M -5,487.78M
Net income 1,621.65M 1,628.77M 1,967.00M -315.80M -5,111.66M
EBITDA 2,590.21M 2,493.67M 611.01M 1,539.47M -2,193.30M
Diluted EPS 0.58 0.49 0.58 -0.09 -1.52
Dividends Per Share 0.12 0.12 0.24 0 0
Total Assets 23,653.45M 23,528.26M 19,446.59M 25,594.71M 19,664.05M
Total liabilities 17,025.67M 16,818.18M 13,261.32M 22,683.97M 23,233.85M
Total equity 6,632.98M 8,048.11M 7,784.45M 4,498.33M -1,214.28M
Operating cash flow 2,244.77M 2,052.46M 524.07M 2,087.45M -2,164.61M
 Dec 2016Dec 2017Dec 2018Dec 2019Dec 2020
Revenue 1,652.56M 2,258.32M 2,636.25M 2,862.77M 745.13M
Gross Profit 481.78M 431.02M 199.52M 295.97M -553.27M
Operating income 453.58M 378.97M 6.35M 18.28M -1,015.31M
Income before tax 411.49M 485.58M 330.88M -17.56M -1,305.92M
Net income 391.44M 378.82M 487.44M -76.22M -1,216.42M
EBITDA 625.24M 579.99M 151.41M 371.58M -521.94M
Diluted EPS 0.14 0.11 0.14 -0.02 -0.36
Dividends Per Share 0.02 0.02 0.05 0 0
Total Assets 5,272.72M 5,813.75M 4,705.76M 6,257.11M 4,888.51M
Total liabilities 3,795.29M 4,155.71M 3,209.03M 5,545.52M 5,775.97M
Total equity 1,478.59M 1,988.66M 1,883.71M 1,099.70M -301.87M
Operating cash flow 541.86M 477.37M 129.87M 503.85M -515.11M

Valuation Measures

Dec 2020
PER--
ROA-22.58%
ROE-311.30%
Operating margin-136.25%
Profit margin-163.24%

Key executives

  • Group CEO & Non-Independent Executive Director: Tony Fernandes
  • Chief Operations Officer: Javed Malik
  • Group Chief Financial Officer: Pattra Boosarawongse
  • Group Head-Information & Communication Technology: Kin Choy Lau
  • Head-Engineering: Nadzri Hashim

Shareholders

  • Tune Air Sdn Bhd (13.2%)
  • Tune Live Sdn. Bhd. (13.0%)
  • Positive Boom Ltd. (8.5%)
  • Permodalan Nasional Bhd. (6.3%)
  • Urusharta Jamaah Sdn. Bhd. (3.5%)
  • FERNANDES SHIVA (1.2%)
  • The Vanguard Group, Inc. (1.1%)
  • Aimia, Inc. (0.9%)
  • icapital.biz Bhd. (0.6%)
  • Research Affiliates LLC (0.6%)

Contact Details

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

Related Companies

  • AirAsia Ads Sdn. Bhd.
  • Merah Aviation Asset Holding Ltd.
  • AirAsia Digital
  • AirAsia Bhd.
  • RedTix Sdn. Bhd.
  • Koolred Sdn. Bhd.
  • Asia Aviation Capital Ltd.
  • T & Co. Coffee Sdn. Bhd.
  • 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

  • PT Garuda Indonesia (Persero) Tbk Class B
  • Qantas Airways Limited
  • Bangkok Airways Public Co., Ltd.
  • SpiceJet Limited
  • Cebu Air Inc.
  • JG Summit Holdings Inc.
  • Controladora Vuela Compania de Aviacion SAB de CV Class A
Last Updated on 27 Sep, 2021

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