AirAsia to list Indonesia, Philippines units

[KUALA LUMPUR] AirAsia, Asia's largest budget airline by passenger volume, will list its Indonesia and Philippines businesses, group CEO Tony Fernandes said on Monday, without giving any timeline or value for the exercise.

The plan for both IPOs will depend on getting the respective board approvals, Mr Fernandes said on Twitter.

He said business in both the Philippines and Indonesia was doing very well, with great support from both governments. "We can confirm today that AirAsia Indonesia and AirAsia Philippines will be IPO. Subject to respective board approvals," Mr Fernandes said.

AirAsia owns 49 per cent of Indonesia AirAsia and 40 per cent of AirAsia Philippines.

AirAsia aborted a plan to list its Indonesian arm last year as the unit was performing poorly, Mr Fernandes was quoted saying previously by local media.

AirAsia posted its first quarterly loss in two years for the October to December period last year, on higher financing costs and foreign-exchange losses.

The carrier's Indonesian unit was hit by an air disaster at the end of last year when 162 people were killed after one of its plane crashed en route from the city of Surabaya to Singapore.

REUTERS