AirAsia Mulling Internatrional HQ In Thailand - Thai DPM

[flee 5]

BANGKOK, April 30 (Bernama) -- Low-cost airline Air Asia is mulling the possibility of setting up its Internatioal Headquarters (IHQ) in Thailand as well as building its own airport in the country, said Thai Deputy Prime Minister Somkid Jatusripitak.

The matter, he said, was discussed when Air Asia's founder and Group Chief Executive Officer Tan Sri Tony Fernandes made a courtesy call on Thai Prime Minister Gen. Prayut Chan-o-cha at Government House yesterday.

"He (Fernandes) floated the idea of setting up an IHQ in Thailand as the true gateway of ASEAN tourism," the local media quoted Somkid as saying today.

The deputy prime minister in charge of economic affairs, who was also at the meeting, said the suggestion by the low-cost airline to set up an IHQ in Thailand signalled a return of foreign-investor confidence in the country.

The budget carrier's owner, he said, also envisaged the consolidation of its subsidiaries in the region and listing the consolidated company on the Stock Exchange of Thailand (SET) or seeking a dual listing in Malaysia and Thailand.

Somkid said Air Asia was also ready to work with other carriers in Thailand to connect ASEAN cities and bring passengers to the country.

In February this year, the deputy premier suggested that national flag carrier Thai Airways consider buying a 20 per cent stake in Thai Air Asia to leverage on the benefits of a budget airline.

[Mushrif A 3]

We heard that one before....maybe the last time was a courtesy call to the Indonesian president.....

 

It's just one of those big picture, feel-good statements that one dishes out when saying hello to those higher-ups....

[Robert 0]

We heard that one before....maybe the last time was a courtesy call to the Indonesian president.....

 

It's just one of those big picture, feel-good statements that one dishes out when saying hello to those higher-ups....

what happened to the Jakarta HQ ? My memory isn't as good as its used to be:)

[J. Suri 0]

Test and try formula... it is "internatrional" after all, isn't it Flee? hehe

[jani 0]

Yeah I guess the big-ass building next to klia2 just being built for show eh? haha Tony Jakarta ASEAN HQ la.. Bangkok International HQ. KL HQ HQ

[flee 5]

Tony Fernandes is very well known for thinking aloud and getting responses from everyone - its free market survey for him. Lately, he has been championing ASEAN. He can see that Airasia is hitting limits in Malaysia and Thailand and growth will be slow if they are not able to exploit larger markets in the ASEAN region.

 

To me, the more interesting part of the report is that they are looking to build their own airport - like Bangkok Air has done in Koh Samui. As we all know, AK has been critical of klia2 for a long time. It is understandable that they want airport costs to be under control - having their own airport will mean that they can keep a tight lid on airport costs.

 

One thing to note though - Thailand is a very stable country for business. Just look at their automotive industry - it keeps growing and growing despite changes in government. Long term policies are laid down and implemented. Perhaps it is this stability that attracts businesses to Thailand.

 

I think TF is probably impressed that Thai Air Asia and Thai Air Asia X can do well despite the challenges the Thai regulatory authorities are facing in the ICAO. Time will tell if TF is merely building castles in the air or is serious about investing more in Thailand.

[flee 5]

AirAsia Group considers merging Indonesia, Thai subsidiaries

 

http://atwonline.com/airlines/airasia-group-considers-merging-indonesia-thai-subsidiaries

[BC Tam 2]

Wonder how much of this is related to King Power's recent interest ?

King Power zeroes in on Thai AirAsia takeover
http://www.nationmultimedia.com/business/King-Power-zeroes-in-on-Thai-AirAsia-takeover-30285372.html

[flee 5]

Could be a defensive move to make Airasia bigger - so cost more to takeover.

[KK Lee 5]

Could be a defensive move to make Airasia bigger - so cost more to takeover.

King power has the resources to swallow the air Asia group without hesitation. It could be tf need King power resources to fight lion air in Indonesia.

[flee 5]

Thai Airasia is rather interesting - despite Thailand's problems with the ICAO and FAA, both Thai Airasia and Thai Airasia X are profitable and still growing. Imagine what it will be like if the Thai civil aviation authorities are not in trouble.

 

Indonesia Airasia is a different story - it is really struggling against the Lion Group. It does not have much in the way of domestic routes and its international routes are not doing that well after the QZ8501 crash.

 

Merging the two might seem to be a good idea. But I do that think it is going to happen due to the many shareholders involved. They all have different objectives and agendas. Also, merging might actually kill of Thai Airasia!

 

With King Power, it looks better - they have the financial resources to push Thai Airasia higher. The uncertainty is whether they will interfere with the present management. As the management are also part of the present owners, it would seem unlikely that they will be retained. Putting a new management in can be risky and disrupt the growth trajectory.

 

Very interesting. Lets wait and see what happens!

Edited May 7, 2016 by flee