Air Asia Philippines narrows Q1 net loss

May 27, 2013 11:58 pm 

MANILA, May 27 — Philippines AirAsia (PAA) registered an improvement during the first quarter of the year, narrowing its net loss to RM20 million compared to RM 22.7 million in the fourth quarter of 2012.

Based on TA Securities report, the Air Asia management is expecting that PAA would turn into profit this year riding on the synergistic integration with Zest Airways.

PAA has completed the acquisition of 40 percent stake in Zest recently.

The integration between PAA and Zest Air started on May 10, 2013 where Zest Flight bookings can now be done on AirAsia website.

According to the Air Asia Group's first quarter report, PAA and Air Asia Japan (AAJ) were in the red due to high start up losses as well as diseconomies of scale. AAJ’s net loss widen to RM67 million in the first quarter compared with net loss of RM39.9 million in the fourth quarter of 2012 brought by high marketing expenses.

AirAsia, the leading and largest low-cost carrier in Asia, posted a core net profit of RM143 million for the period.

For this year, the AirAsia Group is very much optimistic on expanding the business. More new routes will be launched this year and it will increase frequencies on a few routes, as it takes delivery of 28 Airbus 320 aircraft.

Air Asia will deploy three A320 in the Philippines. Air Asia Malaysia will have 6 A320; Thailand, 8; Indonesia, 7; and Japan, 4.

AirAsia services the most extensive network with 85 destinations, using its 120 aircraft.

For 11 years of operations, AirAsia has carried over 180 million guests and is proud to be a truly Association of Southeast Asian Nations (ASEAN) airline with established operations based in Malaysia, Indonesia, Thailand, Japan and the Philippines servicing a network stretching across all ASEAN countries, China, India and Australia.

Meanwhile, Tune Ins Holdings Berhad, the exclusive insurance product manager for AirAsia is leveraging on the growth of AirAsia’s business, by providing service to every country within the AirAsia route network.

Tune Ins Holdings is organized into four major business segments; investment holding, general reinsurance, life reinsurance and general insurance business.

“As AirAsia’s expands its footprint, we intend to follow suit so long as it is commercially viable. We are very excited about the airline’s impending entry into India, as well as the acquisition of Zest Airways Inc. in the Philippines as these will greatly increase AirAsia’s market share in these countries, hence present us with a bigger captive market for our products,” Tune said.

Just like AirAsia’s low cost service, Tune Ins also gives technology-intensive, cost effective services without the frills, so that these can be offered at a low-cost to be enjoyed by the greatest number of people. (PNA)



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