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AirAsia Indonesia
After a couple of years of capacity
rationalisation, in 2017 AirAsia Indonesia
(PT Indonesia AirAsia) welcomed a new
aircraft, increasing its fleet to 23, and
introduced two new international routes,
further reaffirming AirAsia’s leadership
as the airline group with the largest
international travel market share in the
country. Despite volcanic activity impacting
travel into Indonesia in the fourth quarter,
our associate flew a total of 6.7 million
guests for the year, down only 1% from the
number in 2016, and maintained a healthy
load factor of 84%. Its net operating profit
stood at IDR378.5 billion while profit
before tax was IDR300.30 billion. Since
the official listing of PT AirAsia Indonesia
Tbk, the holding company of PT Indonesia
AirAsia, on 29 December 2017, retail
investor interest in PT AirAsia Indonesia
Tbk has been growing.
AirAsia Philippines
We are extremely proud of the turnaround
by our Philippine operations, proving that
perseverance and our business model
truly work. Despite numerous one-off
costs for aircraft redeliveries, maintenance
and overhaul throughout 2017, AirAsia
Philippines grew its revenue 48% from
PHP10.80 billion in 2016 to
PHP15.93 billion and achieved a net
operating profit of PHP686.4 million
backed by ASK growth of 37%. Revenue
was boosted by a 32% increase in number
of guests carried and 8% increase in
average fare. While increasing its capacity
by 31% our Philippines operations
also maintained its load factor at 87%.
Meanwhile, ancillary income per guest
grew 26% from PHP419 to PHP528.
AirAsia India
Our associate airline in India achieved
tremendous growth in 2017, increasing
its revenue 86% from INR8.26 billion to
INR15.36 billion, boosted by an 81% hike in
number of guests carried. The delivery of
six aircraft during the year enabled AirAsia
India to increase its capacity by 80% via
route network expansion that included
five new destinations. Ancillary income
per guest also grew 8% from INR376
to INR408 while its load factor stood at
87%, an increase from 86% in 2016. Most
encouragingly, our associate recorded its
first net operating profit of INR144 million,
in the fourth quarter. With its affordable
fares, AirAsia India is stimulating demand
in the country.
AirAsia Japan
AirAsia Japan took off commercially on
29 October 2017, stamping its operations
with a high level of efficiency, its single
aircraft achieving an on-time performance
of 90% on the twice daily route between
Nagoya and Sapporo. With two aircraft
in 2018, our associate will focus on route
expansion.
EXPANSION INTO THE REGION
We have come a long way from our
humble beginnings, yet are still some
distance from filling all the dots within
the Asean, and certainly the Asian, map.
In 2017, however, we managed to make
positive advances in this regard, clearing a
path towards setting up operations in two
markets that have great appeal and that
would help us complete the loop of airlines
we have created within the Asia-Pacific
region.
After years of eyeing Vietnam, we have
finally found suitable partners for a joint
venture there. The country has always
attracted us because of its sizeable
population of 95 million, fast-expanding
middle income segment and rapid growth
in air travel which, in the last two years,
was the fastest in the world. This growth,
moreover, is set to continue in double
digits over the next decade . We are very
excited by the prospect of being part of this
growth, and indeed to stimulate it further.
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AirAsia Group Berhad
PERSPECTIVE
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