AirAsia sees IPOs of Indonesia, Philippines units by 2018

AirAsia group CEO Tan Sri Tony Fernandes says the initial share sale plans of the Indonesia and Philippines units are proceeding well.

KUALA LUMPUR: AirAsia group CEO Tan Sri Tony Fernandes says the initial share sale plans of the Indonesia and Philippines units are proceeding well.

He was quoted saying in Manila on Tuesday the IPO for Indonesia is possible before year end and  likely next year.

“There are no regulatory hurdles to Philippine IPO, which will likely happen in mid-2018”, he said at a briefing to introduce AirAsia’s 'I love Asean' logo for group’s 50th anniversary.

AirAsia is planning more Asean routes to Davao City, with first route from Kuala Lumpur to Davao by December, Bloomberg reported.

Airline also looking at Kota Kinabalu-Davao and Asean to Puerto Princesa.

Fernandes was also quoted saying the Philippine government should consider removing airport tax in cities outside Manila to boost tourism traffic.

AirAsia, which is seeking to match size of rival Cebu Air, has had tough time in Philippines, “we haven’t been warmly welcomed by the incumbent which we’d expect but we’ve hang in there, we’re doing a good job now and we’ll re-grow that will take us to 18 aircraft”.

Fernandes said Asean’s market of 700 million people “gives us a much better chance to compete against the world’’.