Malaysia’s AirAsia Group reviewing India investment, hints at possible exit

REUTERS/Beawiharta

Malaysia’s flagship budget carrier AirAsia Group Bhd has given its strongest indication to date that it could exit India, saying on Tuesday it was reviewing its investment in a joint venture airline there.

The group said in a statement that its operations in India, like those of its now-shuttered Japan business, have been draining cash and adding to the group’s financial stress.

“Cost containment and reducing cash burn remain key priorities evident by the recent closure of AirAsia Japan and an ongoing review of our investment in AirAsia India,” it said.

AirAsia shut its operations in Japan, the smallest of its foreign offshoots, last month.

The airline owns 49% of AirAsia India, a joint venture with Tata Sons.

The Times of India reported last month, citing sources, that Tata Sons’ parent is in discussions to buy AirAsia Group’s stake.

Group Chief Executive Officer Tony Fernandes told Reuters in September that the group intends to consolidate and strengthen its Asean foothold, which could mean one day exiting both Japan and India.

AirAsia Group said it remains confident of returning stronger, more robust and faster than many competitors, given strong signs of recovery in its key domestic markets due to pent-up demand and numerous COVID-19 vaccines in near-final stages of testing.

“The general outlook is that air travel will be bouncing back real soon; we expect to get back to pre-pandemic levels on many routes across the Group by mid-2021, if not earlier,” president for the group’s airlines, Bo Lingam said.

AirAsia Group’s share price touched its highest since June 29 on Tuesday in a second consecutive day of sharp gains, likely buoyed by news that U.S. vaccine maker Moderna Inc’s experimental vaccine is 94.5% effective in preventing COVID-19 based on interim data from a late-stage trial.

Shares in its long-haul arm AirAsia X Bhd rose as much as 14%.

Reuters

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In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

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  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
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