PETALING JAYA: News of the newly forged alliance between AirAsia Bhd and Jetstar Airways Pty Ltd is seen as a positive development for AirAsia, but investors and analysts remain cautious on the budget airline due to a lack of details on the coalition as well as lingering worries about the aviation industry.
“Our main concern remains fuel cost,” Kenanga Research said yesterday. “We are unsure if the alliance would help both airlines in reducing their fuel cost via bulk purchasing or hedges.”
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