PUBLIC ADVISORY


Passenger Fuel Surcharge Level for 1 November to 31 December 2018
CLOSE

IMPLEMENTATION OF PARAGRAPH 9.2, SECTION 9 OF CAB ECONOMIC REGULATION NO. 9, OTHERWISE KNOWN AS THE AIR PASSENGER BILL OF RIGHTS

-- Download this Advisory

SCAMMERS USING THE DOTr AND ITS ATTACHED AGENCIES ADVISORY

-- View/Download this Advisory
CLOSE       

Print
01
Nov

AirAsia to sell more stakes in non-flying businesses to fund dividends

Written by bh0ngg. Posted in News

The low-cost carrier, which expects S$119.3 million ($87.7 million) in proceeds from the SATS deal, is close to selling some or all of its aircraft leasing arm and its remaining 25 percent stake in a travel booking joint venture with Expedia Inc (EXPE.O), its founder and Group CEO Tony Fernandes said.

The airline will also consider the sale of stakes in its food, engineering and duty free businesses in the future, although no talks on those have begun, Fernandes said.

“We are going to special dividend those things out,” he told Reuters after a media briefing on the SATS deal.

“There is a whole pipeline of those assets. We do joint ventures and eventually we will dispose of those joint ventures. They are not core. But the relationship will always stay.”

Earlier this year, AirAsia got $100 million from the sale of a 50 percent stake in aviation academy Asian Aviation Center of Excellence to CAE International Holding Ltd.

While Fernandes did not give details on the special dividend, analysts at Malaysia’s Kenanga Investment Bank said it could be up to 0.11 ringgit a share after the SATS deal.

The optimism drove up the airline’s shares by 5 percent, or 0.16 ringgit, to a close of 3.34 ringgit ($0.7893) on Tuesday, their biggest daily percentage rise since May.

FUTURE PLANS

Fernandes said he hoped to complete the sale of the leasing business, which two sources in March valued at $900 million, by the end of the year.

He said talks with potential buyers had dragged on because AirAsia wanted to ensure it had the right balance between receiving a high upfront price and ensuring its leasing costs were reasonable in the future.

“I think now we have got a very good deal which is a win-win situation,” he said, without identifying the buyer.

Fernandes said he would prefer for AirAsia to keep a stake in the business rather than sell it entirely as it was doing with the SATS JV, but it was a decision for the board.

As part of the SATS deal, AirAsia will receive a 40 percent stake in ground handling at the new Terminal 4 at Singapore’s Changi Airport, while SATS will get a 49 percent stake in AirAsia’s Malaysian ground handling unit.

The pair will be targeting third-party ground handling contracts in Malaysia, and possibly in Indonesia, Thailand and the Philippines at a later date, SATS CEO Alex Hungate said.

“We get to use those assets for a broader base of customers and we get a better return on assets,” he said.

AirAsia has ground handling operations at 15 airports in Malaysia but no third-party contracts at present.

Reporting by Jamie Freed; Editing by Himani Sarkar

 

AIR PASSENGER BILL OF RIGHTS

CAB Hotline

Public Assistance 24/7

165-66

Secondary Numbers: PASSENGER RIGHTS ACTION DESK (PRAD)

NAIA Terminal1 0919-9128457 Laoag Airport 0998-5864834
NAIA Terminal2 0919-9128458 Legaspi Airport 0919-9128461
NAIA Terminal3 0919-9128451 Mactan-Cebu T1 0919-9128464
NAIA Terminal4 0919-9128470 Mactan-Cebu T2 To be updated
Bacolod Airport 0998-5864828 Masbate Airport To be updated
Basco Airport 0998-5864829 Naga Airport 0919-9128462
Boracay Airport 0919-9128453 Ozamis Airport 0998-5864835
Busuanga Airport 0919-9128460 Pagadian Airport 0998-5864836
Butuan Airport 0998-5864830 Puerto Princessa 0998-5864837
Camiguin Airport 0998-5864831 Roxas Airport 0998-5864838
Clark Int'l. Airport 0919-9128471 Siargao Airport 0919-9128456
Davao Int'l. Airport 0919-9128469 Surigao Airport 0998-5864839
Dipolog Airport 0998-5864832 Tacloban Airport 0998-5864840
Dumaguete Airprot 0998-5864833 Tagbilaran Airport 0919-9128465
General Santos 0919-9128467 Tuguegarao Airport 0998-5864841
Iloilo Int'l. Airport 0919-9128466 Virac Airport 0919-9128463
Kalibo Int'l. Airport 0919-9128454 Zamboanga Airport 0998-5864842
Laguindingan 0919-9128468

✆ 852-8967 (CAB Legal Office)
APBR@cab.gov.ph

Trunk Lines:
☎ (+632) 853-7259
☎ (+632) 854-5996

PRAD NAIA Terminal1 0919-9128457 PRAD Laguindingan 0919-9128468
PRAD NAIA Terminal2 0919-9128458 PRAD Laoag Airport 0998-5864834
PRAD NAIA Terminal3 0919-9128451 PRAD Legaspi Airport 0919-9128461
PRAD NAIA Terminal4 0919-9128470 PRAD Mactan-Cebu Int'l. 0919-9128464
PRAD Clark Int'l .Airport 0919-9128471 PRAD Naga Airport 0919-9128462
PRAD Bacolod Airport 0998-5864828 PRAD Ozamis Airport 0998-5864835
PRAD Basco Airport 0998-5864829 PRAD Pagadian Airport 0998-5864836
PRAD Boracay Airport 0919-9128453 PRAD Puerto Princessa 0998-5864837
PRAD Busuanga Airport 0919-9128460 PRAD Roxas Airport 0998-5864838
PRAD Butuan Airport 0998-5864830 PRAD Siargao Airport 0919-9128456
PRAD Camiguin Airport 0998-5864831 PRAD Surigao Airport 0998-5864839
PRAD Davao Int'l. Airport 0919-9128469 PRAD Tacloban Airport 0998-5864840
PRAD Dipolog Airport 0998-5864832 PRAD Tagbiliran Airport 0919-9128465
PRAD Dumaguete Airprot 0998-5864833 PRAD Tugeugarao Airport 0998-5864841
PRAD General Santos 0919-9128467 PRAD Virac Airport 0919-9128463
PRAD Iloilo Int'l .Airport 0919-9128466 PRAD Zamboanga Airport 0998-5864842
PRAD Kalibo Int'l. Airport 0919-9128454

complaints-button

flight-information-button

summary-of-the-rights-of-air-passengers-thumbnail

things-to-know-button

transparency-seal

cab-gender and development

Freedom of Information Philippines

citizens-charter

Vicinity Map

Vicinity Map of CAB

Web Stats

Today118
Yesterday253
Week118
Month6956
All363439

Currently are 104 guests and no members online