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Air Asia Will Consolidate Their Business in Southeast Asia

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Air Asia Will Consolidate Their Business in Southeast Asia

The Business and Finance sectors in the world are very tight in recent years. Many new companies are making big strides and are able to outperform their more advanced competitors in the same sector. One of the fastest growing businesses is flight. Although some countries in Southeast Asia do not have international airlines, they have flagship airlines for the middle class as well as AirAsia.

Low-cost airline from Malaysia, AirAsia plans to unite all its existing business in Southeast Asia. However, this plan still seems to be hit by regulatory issues. AirAsia wants to focus its business in Malaysia. Currently, AirAsia has business units in Malaysia, Indonesia, Philippines, Thailand, and several other countries outside Southeast Asia.

The purpose of this business unification is to be able to go public or to floor on the stock exchange with a new holding company. AirAsia’s CEO announced this consolidation plan when the airline’s business metrics were strong. This is very likely to happen considering they are still the choice of many people because it has a very affordable price for domestic and overseas flights.

Currently, AirAsia is currently ordering 400 units of new aircraft. Analysts say AirAsia appears to be preparing for growth. AirAsia officials expect AirAsia’s business units in India to earn a profit in the next six months. Conditions on oil markets and exchange rates also boosted airline business.

Earlier this week, oil prices were at around 52 dollars per barrel. The weakening of the Malaysian ringgit currency also boosted the country’s tourism sector, which is a profitable field for AirAsia.

To become a new holding company that can be floored in the stock market, AirAsia still has to face a number of challenges. AirAsia must negotiate with several countries to fully own the airlines by swapping partner shares into holding companies. If the negotiations do not go well, the initial public offering (IPO) of the AirAsia group may not be possible.

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