AirAsia taps SEA capital market

AirAsia plans to list on the Thai and Indonesian stock exchanges in a bid to tap the region's capital markets despite a turbulent year for airlines. -- PHOTO: AFP

KUALA LUMPUR - SOUTHEAST Asia's biggest budget carrier AirAsia plans to list on the Thai and Indonesian stock exchanges in a bid to tap the region's capital markets despite a turbulent year for airlines.

AirAsia has the most extensive network in Southeast Asia, with more than 70 destinations across 20 countries - and has grown dramatically from just two planes to its current fleet of 85 in just seven years. Now the company, currently listed only in Malaysia, wants to list itself and its Thai affiliate in Thailand. It also wants to list its Indonesian affiliate in Indonesia.

Group chief executive Tony Fernandes said the moves would give it more of a Southeast Asian identity. 'We are an Asean company. We want many Asean investors to buy our shares,' he told AFP over the weekend in Kuala Lumpur.

AirAsia is a big capital stock on the Malaysian bourse. 'By listing on the three stock exchanges, it will boost AirAsia's Asean identity,' he said.

Indonesia is Southeast Asia's most-populated nation while Thailand and Malaysia are key members of regional bloc the Association of Southeast Asian Nations (Asean).

Mr Fernandes said he was unable to say when the listings would take place as the plan was still in its infancy, but was confident there would be demand for the shares, despite the industry's problems during the global economic downturn. 'The timing is great in Asia. And Southeast Asia is a huge market,' he said of the region's 550 million people. -- AFP