Airlines owned by Asian businessman Tony Fernandes, PT AirAsia Indonesia Tbk (IDX: CMPP), postponed the rights issue plans to comply the free float program - Photo: Spesial

JAKARTA (TheInsiderStories) – Airlines owned by Asian businessman Tony Fernandes, PT AirAsia Indonesia Tbk (IDX: CMPP), postponed the rights issue plans to comply the free float program. Currently the issuer stock is on suspension caused not comply the regulation.

President Director of AirAsia Indonesia, Dendy Kurniawan, said that prior to the pandemic, the company continued to review the rights issue plan. Currently, he said focus of the company and shareholders is internal consolidation to face these unfavorable situations.

Based on data of the official data, the share ownership of the low-cost flight carriers are Malaysia’ AirAsia Investment Ltd., with 49.25 percent, PT Fersindo Nusaperkasa narrowed to 49.16 percent, and public equivalent to 1.59 percent. In March 2020, Indonesia Stock Exchange warned of the risk of delisting of the issuer from the trading board. So far, the company’ shares had been suspended for seven months since August 5, 2019 and the suspension would ended on August 5, 2021.

In the second quarter of 2020, the airlines’ total passengers fell by 99.8 percent to 4,059 sitter. As a group, Malaysia’ AirAsia Bhd’ passenger number occupants and seat capacity also dropped by 98 percent in the same period to 204,082 in the same period.

The load factor of the group (Indonesia, Malaysia, Thailand, Philippines, and India) also fell to 59 percent and number of flights fell 98 percent to 1,868. During the pandemic, the issuer rely on essential movement of people and cargo, some of which had longer distance, contributing to a 3 percent increase in average stage length.

AirAsia Indonesia resumed operations on June 19 with five routes. At the end of July, the daily sales have reached five times of the daily sales recorded in early June, evidently showing signs of demand recovery.

This year, said Kurniawan, the pandemic will have a direct impact on the flight carrier’ businesses. He stated, since “On April 1, we briefly suspended all domestic and international flights to help prevent the spread of the outbreak.”

AirAsia Malaysia doubled up capacity in June compared to May, as the Malaysian government began allowing interstate travel from June 10. The unit achieved a 65 percent load factor while carrying 118,407 passengers in June, having reopened 24 routes by month’ end. The company expects to recover up to 70 percent of its pre-COVID-19 domestic capacity by 4Q of 2020.

While, AirAsia Philippines registered a 99 percent decline in number of passengers carried as the airline entity hibernated its fleet from March 20 to June 4. The subsidiary boasted 19 percent of capacity market and ended the quarter with the resumption of 6 routes. For the 4Q of this year, the flight carrier is targeting a recovery of domestic capacity up to 60 percent of pre-COVID-19 levels.

Then, in May 2020, AirAsia Thailand reinstated domestic flights in phases as lockdown measures were partially uplifted, but with social distancing measures implemented on-board as required by the authorities, before the measures were eased in mid-June. With the encouraging rebound traffic, the unit operated 18 percent of pre-COVID-19 capacity in June 2020, which more than doubled the May 2020 capacity.

The airliners resumed service to 18 of its domestic destinations in 2Q of 2020, topping peers with a leading capacity market share of 33 percent. In 3Q and 4Q of this year, AirAsia Thailand expects to operate 75 and 95 percent of pre-COVID-19 domestic capacity respectively.

Furthermore, AirAsia India restarted its domestic operations on May 25, and was quick to ramp up to 30 percent of pre-COVID-19 capacity in June, with 36 operational routes. The Group is optimistic over the subsidiary’ performance and is looking at domestic capacity resumption of 55 percent for 3Q and 80 percent for 4Q out of last year’s operations.

And, AirAsia Japan reported a decline of 98 percent in passengers carried with 4 percent operating capacity in 2Q of 2020, as flights were not restarted due to guidelines set by the government. AirAsia Japan resumed operations on August 1, 2020.

In the first semester of 2020, this low-cost airline recorded a net loss Rp909.07 billion or increased more than 1,000 percent from the same period in the previous year of Rp82.53 billion. The operating income also fell 55.15 percent from Rp2.99 trillion to Rp1.34 trillion.

US$1: Rp14,800

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