Air Asia is moving its regional base to Jakarta, according to reports.
The Jakarta Globe said in an editorial that AirAsia’s decision to relocate its regional headquarters from Malaysia to Jakarta is “a telling sign of the opportunities that exist in Indonesia”.
See another report in the Globe.
Asia Sentinel interprets the move as a setback for Najib: “With all the troubles he has had over the last two months, the confirmation Friday that AirAsia, arguably Malaysia’s most vibrant private company, is moving its headquarters out of the country to Indonesia is one more blow.”
Blogger Dr Rafick raises a pertinent question: Is everything okay in Malaysia?
Air Asia had announced on 15 July that as at 30 June 2011, 52.5 per cent of its issued share capital was now held by foreigners. “The percentage of ownership of shares in the Company by foreigners has exceeded the limit of 45% of the Company’s total issued and paid-up share capital (“Prescribed Limit”).”
According to regulations, shares held by foreigners which have exceeded the Prescribed Limit shall be entitled to all rights and entitlements ordinarily attached to the shares except for the exercise of voting rights.
Hmm, maybe it’s time to revisit the debate on the impact of air travel on global warming… The other day I met an environmentally conscious couple who, even though they could afford it, refused to take flights for holidays abroad because of concerns about their carbon footprint. That set me thinking.
Even if you aren’t convinced about global warming/climate change, no one can deny one thing: oil is a finite resource. And as demand for fuel increases, oil prices will rise correspondingly as surely as night follows day. Given that real wages have not been rising as fast as the cost of living, budget air travel is merely delaying the day when air travel becomes prohibitively expensive for a lot of people. Except if (and that’s a big if) renewable energy sources are found. (Note: The Jakarta Post reported this week that Indonesia AirAsia (AAI) would end its Medan-Hong Kong route, one of its longest routes, amid soaring oil prices.)
|Please help to support this blog if you can.
Read the commenting guidlelines for this blog.
This is not safe place for HQ IN jakarta. Because of security reasons.
Tony is selling out the interest of Air Asia to Khazanah? All signs are there. Air Asia X may not be able take on the imminent threat of coming low-cost unit of SIA that has startd purchasing more Boeing 777s. Tony have shown to us that he ‘moved’ literally from music industry (Warner) to airlines. He will continue to do so with investors’ money. He is now frocliking with F1, soon he will sell off his stake in Air Asia to venture into football business by acquiring QPR to be one-up above Vincent Tan’s Cardiff FC, all in the name… Read more »
A few days before Air Asia-MAS courtship, a local fund analyst advised people to buy Air Asia stock that he claimed will go up to RM4.25. Those who followed the advice must be feeling betrayed by Sir Tony who sold-out to MAS when the Air Aia share price has instead gone down!!!
MAS swaps 10 per cent stake in Air Asia for 20.5 per cent share MAS for Tony, Tony got majority stake in MAS. MAS only got 10% stake holding. Tony (may) then put all his Airbus 200 airplane under MAS engineering depot – without paying any single sen(?) All by contra credit(?) MAS Engineering will maintain all 300 AirAsia planes(?) Then when MAS Engineering gone into sour, MAS Engineering need to be sell off, Tony (may) be there to take over MAS Engineering(?)
MAS Engineering is the only jewel in the crown for MAS, and Tony knows that.
Tony denies that AirAsia HQ moves to Jakarta. Of course after a surprising news headlines some people must have called him to repair the damage. Yes AirAsia HQ might be still in Sepang, but it’s bigger office for ASEAN will be in JAKARTA!
Tony did a publicity stunt?
Maybe he wanted attention?
He should focus on giving good value to his customers and be open about all those ‘concealed costs’. Also, Air Asia should at least gives a free drink (if not a meal) to passengers whose flights are rescheduled by Air Asia (happening too frequent lately!).
AirAsia target 500 plane by 2020 according to recent report.
Where to get the money to fund such big venture ?
Easy by go listing in Thailand, Philipines, Indonesia etc and create positive marketing news to heighten the brand name in economic term called GEARING.
Once such goal accomplished, the members of the board (Khairy ? may be hence Apanama associates refuse to grant more to Fernandez in Najib’s era ?) (could) cash out to become instant Billionaires.
So be aware that Syiok Syiok tell you so … Better fund tunglang setting up Penang Food Museum, ROI sure meletup
Why is AirAsia headed by a non Malay ? What is Perkasa or even Umno doing anything about it ? Also why is it AirAsia do not need any government funding and assistances just like MAS ? Has that got any thing to do with who is heading MAS ? May be shenanigan Mahathir can become the CEO or give some of his advice that will sink MAS faster … Oh, I forgot he bailed it out a couple of times when he was the P.M. but I wonder why he did not appoint one of his sons or even… Read more »
When is AirAsia going to buy up Singapore Airlines which was promised by the CEO Tony Fernandes ? May be he conveniently left out that AirAsia will one day buy up Singapore Airlines check in counter at Subang with borrowed money.
Robert Kwok main office moved to Hongkong/China years ago.
Tony requested for a fair deal for AirAsia. It’s not easy to deal with some arrogant politicians. Politicians want to put their fingures into almost all businesses in the country. You fail them and they will fail you. Remember Tony was close to Khairy then? And now that surely is a difficult one. In which political divide you are will determine your rice bowl in this country. This is bad for the country. THE COUNTRY MUST BE GOVERNED THE WAY KHALID IBRAHIM IS NOW DOING IN SELANGOR AND LIM GUAN ENG IS DOING IN PENANG. NO 10 PERCENT TO POLITICIANS,… Read more »
Politicians want to put their fingures into almost all businesses in the country?
More precisely: all profitable businesses like all petrol stations, KFC, Eden, 7 Eleven, Maxis, yours & mine profitable businesses.
After they take over, pray harder 24/7/365 that it will not ‘Chap Lap’ (go out of business)!
That is how Boleh Land sink faster and deeper into oblivion.
Anil, can you show some pictures of the new AA airport in Indonesia, if any? Surely , with the HQ there, they could be constructing one.
With its name ‘Air Asia’, it could easily move its headquarter anywhere in Asia wherever it is profitable. That’s what it means :’Money makes the world go round’, including moving your headquarters. So much for patriotism! I wonder whether it would have moved out of Malaysia had Badawi still remain as PM. Yes, I heard about SIA better service but somehow I always fly with MAS. It’s only with MAS staff that I feel at home the moment I board the plane. How to explain “that Malaysian feeling when you see another Malaysian” ? And needless to say, when the… Read more »
Do you know that many of SIA’s flight attendants are actually Malaysian citizens ??
No idea of that since I don’t fly SIA. Where is Singaporean pride or charm or warmth?
if you don’t believe, next time on SIA or Tiger, just have a chat with the air hostesses. In English, a bit of Msian slang and in Mandarin you also can tell the difference my friend told me.
Talent loss tp Spore ? sure they are pretty and elegant can soon will settle down with rich folks living away from Msia.
Where is Ibrahim of Perkasa the bigmouth hopeless guy dared to talk about forcing to keep KFC (an american franchise brand) within the Malay hand, yet dare not say anything about keeping AIR ASIA (a malaysian company) local in malaysia?
Big oil (and the elite) is suppressing research for alternative energy to artificially inflate oil prices for their own profit.
Only until oil reserves deplete in the future where there will be genuine production of alternative energy which once again will be controlled by the elite companies at the very top, so the very same people will profit AGAIN from energy comsumption by the world
A large airplane will use less fuel per passenger compare to automobile. It is just matter of time that avian industry start trends for bigger plane like airbus A380 and reduce the flight frequency. Less flight, more passenger.
Nevertheless, it doesn’t help cronies and corruption infested GLC like MAS, even it get its A380 fleet in year 2012.
Technology may play a big part to keeping company cost down, but it can’t increase profit for (a) GLC with corruption culture.
Same difference!…forget AirAsia, MAS…fly SIA. Newer and better planes, better services and definitely, more reliable. Where the HQ is not an issue, who cares anyway.
Now that the HQ is moved, will the share listing be transferred to another Exchange like Singapore or horror of horror Jakarta. Now that will be a (blow for) Najib…
why can’t this be seen as a purely business decision because of the potential of the indonesian market………nothing to do with politics or the government etc
AirAsia having trounced MAS (in terms of earnings & KLCI listed price) are now becoming arrogant as the promo prices are not as magnificent as used to be (if add up hidden cost then the published prices are not great after all now).
I am waiting for SIA’s to be launched Low Cost Carriers to create healthy competitions to benefit price sensitive customers in this region; and in a way to awake Tan Sri Fernandes not to take customers for granted.
Fully agreed with this observation. Air Asia (appears to be) now placing more importance to profits than to the customer satisfaction of average middle-income Malaysians. I have had many unfavorable experience with Air Asia in its frequent flight re-timing to my inconvenience. Do not be too happy to get low prce Air Asia tickets that you got from its so-called promotion 6-9 months ahead of scheduled flight (yes, Air Asia took your money so well in advance), as Air Asia (may) retime the flight to early morning or late at night closer to the flight dates. From the biz prespective,… Read more »
Cannot agree more. I was at Senai airport recently. It is really a white elephant. After recent big-money renovation and expansion, it is bigger than Penang Bayan Lepas airport but only handles less than half of the flights in Penang. At the recent Matta Fair at JB Danga Expo, I noticed 95% of the package flights for Johoreans to overseas destinations will depart from Changi Singapore airport. In other words, Singapore stand to gain more e.g. from airport taxes. A lot of talk of Iskandar development, but the s0-called ‘southern hub’ in Senai is certainly a big failure at this… Read more »
Senai Airport promised a lot but delivered little despite the recent expansion – quiet with no activity most of the time as it only handles mostly domestic flights althoug it claims to be international (yes, to Indonesia only!)
Firefly is a let down. It canceled its planned Singapore-Alor Star flight after Pakatan got hold of Kedah. Firefly (appears to be) managed politically, and will not be profitable like MAS.
Still cheaper right? How often do you fly? There must be reasons why they moved their HQ to Jakarta.
Sit back and just enjoy your flight.
i remember airasia had subsidies from pemandu to buy airbus. are foreign company allowed to do that ?
No need to worry-lah!
Where is Perkasa? Why are foreigners holding more equities of Air Asia than Malaysians? Perkasa must demand that 67% of Air Asia’s shares be allocated to bumiputras! Abraham al Katak is all noise but no actions! Why is Abraham so quiet on this matter? How can the most vibrant private Company in Malaysia moves its headquarters from Malaysia to Indonesia? It is a sure tell tale sign that not all are well in this country. The Indonesians dumped Golkar, held by the iron fisted Suharto, and look where it is today. While Malaysia is embroiled in its ketuanan agenda, Indonesia… Read more »
MCA is already history, kaput, finishto…no more Chinese support. Chinese who can read & think will not support MCA.
MIC maybe got 50/50…I am not sure
Ambiga already BERSIH kan UMNO…
Blogger nkkhoo summed up very well:
“AirAsia is smart enough to avoid being drown together with Malaysia. Similar with Genting who calls Singapore as its new home.”
Who’s next to leave? This “Bapak Rhetoric” cannot be trusted anymore. He has lost total control, incompetent and a goner!