Essay Example on AirAsia is a partnership company with many Asian countries

AirAsia is a partnership company with many Asian countries across the globe and it is owned by Tune Group as it possess the highest number of shares The major shareholders of this company is Tune Live Sdn Bhd Tune Air Sdn Bhd Datuk Kamarudin Bin Meranun and Tony Fernandes himself The purpose of this establishment was to provide air travel services and the chance for everyone especially the less fortunate to be able to fly at the lowest price while maintaining the highest quality of product and improving their service quality Besides that AirAsia aims to connect more people and places across hundreds of routes which any other airline does not offer Up to today AirAsia s profit has been skyrocketing because Tony Fernandes stood true to what he said which is to fly as many people as possible at a cheaper rate Therefore many people are grateful to Tony Fernandes as he has given them the opportunity to fly and in return AirAsia s profit has increased drastically to the extent that they managed to pay off the airline s debt of RM40 million in just less than two years AirAsia also provides cheap flights to over 120 destinations such as to Singapore Hong Kong and much more with its main hub located at Kuala Lumpur International Airport KUL In 2007 AirAsia X a sister company to 

AirAsia was established for flights that are long distance which will be flights that take up more than 4 hours to arrive at its destination which is also at a low cost rate All of AirAsia x flights are non stop to avoid the need of more human resources and facilities at every transit Moreover AirAsia focuses on high frequency and turnaround of flights because they not only can save money but also provide more convenience to the customers Based on the article titled AirAsia PH unit s planned IPO postponed to 2018 published on 11th September 2017 and written by Miguel R Camus Tony Fernandes said that an initial public offering of US 200 million was earlier planned to be held by Philippines AirAsia This is because as about 10 percent of the local market belongs to AirAsia's Philippines some funds were needed to further its development and to create new routes as to keep up with the high travel demand whereas some will be taken out for plane and hangar attainment Philippines CEO Dexter Comendador said that Philippines AirAsia targets to reach a revenue of P13 billion in 2017 which is an increase of P2 2 billion compared to P10 8 billion in 2016 Besides that AirAsia Philippines has gained access to important slots in the 

Ninoy Aquino International Airport which is Philippine s busiest air gateway through an investment in and merger with Zest Airways Another related article is AirAsia Philippines will seek US 250 million IPO which is published on 3 October 2017 Although it was stated earlier that a US 200 million was initially targeted to raise through an initial public offering but it has now increased to US 250 million in order to support the development of its route network and to be able to increase the number of aircrafts even more This is expected to take place in the middle of 2018 Air Asia Indonesia is also expecting an initial public offering by end of 2017 or the following year SHARE PRICE Crystal Based on the article AirAsia shares tumble published on 25th May 2017 around the end of May 2017 Air Asia Bhd had experienced a drop of 31 sen to RM2 94 in their shares while on the 26th of September its shares dropped again to RM3 40 which is about 13 sen lower and is pulled down even more by an oil price recovery This can be seen through an increased of oil price from Brent crude which has affected Air Asia s share prices Another article is titled AirAsia sells 50 stake in ACCE for RM429 3 mil which was published on 25 August 2017 AACE which was known as the AirAsia Academy was introduced with the aim of providing training services for pilots maintenance engineers cabin crew and many more Even though AirAsia has plenty of assets but it focuses more on its passenger service and ancillary The net assets and cash balance of AirAsia is predicted to increase At this time AirAsia s share price has increased by 3 sen to RM3 31 on quantity of 8 08 million shares Based on another article titled AirAsia expected to deliver strong fourth quarter earnings published on 1st December 2017 is regarding AirAsia which is expected to gain high profits towards the last quarter of 2017 

As the oil prices have gone up the cost should increase as well However since the US dollar had gone down in the previous months it will help Air Asia as the effect from the costly fuel will be lower CIMB Research said that an expected dividend of RM1 14 share will maintain the interest of investors towards Air Asia over the next 12 months This has enabled the stock's target price to increase from RM3 67 to RM4 04 In the third quarter of 2017 AirAsia reported that its net profit has increased to RM 505 32 million which is 42 9 higher as a result of its share from associates and a decrease of delayed tax expenses AirAsia is to be said to have an increased in its earnings while its revenue increased by RM0 76 billion which is 45 1 more than RM 1 68 billion in the previous year Although AirAsia was doing well but its net profit started to drop from RM1 57 billion to RM1 26 billion for nine months in its previous corresponding period while its revenue increased by 41 during that period