Mumbai: AirAsia is facing challenges in the South East Asia region, and the disappearance of its Airbus A320 aircraft on Sunday will add to its woes and impact its earnings. However, the incident will not significantly impact its long-term growth, say aviation analysts.
Their optimism is based on two factors — AirAsia’s safety record (it has not suffered a crash till now) and the strong demand for budget travel in the region. AirAsia runs airlines in Malaysia, Thailand, Indonesia, Philippines and now in India. AirAsia’s consolidated results includes income from the parent airline in Malaysia and the share of profit or loss from its airlines (treated as associate companies) in Thailand, Indonesia and the Philippines.
The last few months and the year have not been encouraging for the airline. Its consolidated profit ($110 million) in 2013 was the lowest since 2009. Profitability was impacted due to intense competition in Malaysia, a slump in demand because of political crisis in Thailand and the impact of currency depreciation.
29/12/14 Aneesh Phadnis/Business Standard
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Their optimism is based on two factors — AirAsia’s safety record (it has not suffered a crash till now) and the strong demand for budget travel in the region. AirAsia runs airlines in Malaysia, Thailand, Indonesia, Philippines and now in India. AirAsia’s consolidated results includes income from the parent airline in Malaysia and the share of profit or loss from its airlines (treated as associate companies) in Thailand, Indonesia and the Philippines.
The last few months and the year have not been encouraging for the airline. Its consolidated profit ($110 million) in 2013 was the lowest since 2009. Profitability was impacted due to intense competition in Malaysia, a slump in demand because of political crisis in Thailand and the impact of currency depreciation.
29/12/14 Aneesh Phadnis/Business Standard
