AirAsia makes solid stock market debut; aircraft purchase imminent<\/p>\n
Sean Young, Associated Press, Kuala Lumpur<\/p>\n
AirAsia Bhd., the first low-cost carrier to be listed in
\nSoutheast Asia, made a solid debut Monday on the Malaysian stock
\nexchange, while company officials said they'll decide within two
\nmonths on plans to acquire 40 new aircraft.<\/p>\n
Shares of Asia's best-known budget airline soared soon after
\nits debut on Bursa Malaysia to 1.45 ringgit (38 U.S. cents) - 25
\npercent higher than the retail price of its initial public
\noffering of 1.16 ringgit.<\/p>\n
\"Whoever believes in our company will be well-rewarded,\"
\nAirAsia Executive Director Kamarudin Meranun told a news
\nconference.<\/p>\n
Kuala Lumpur-based AirAsia, which has been credited with
\nrevolutionizing air travel in the region, will decide in two
\nmonths whether its planned purchase of 40 new planes will come
\nfrom Boeing Co. or Airbus, with an option to buy 40 more,
\nKamarudin said.<\/p>\n
The aircraft will bolster expansion plans for AirAsia, which
\nnow serves routes in Malaysia, Indonesia and Thailand, but hopes
\nto eventually fly to China, India and the Philippines.<\/p>\n
Brokers said AirAsia opened strong in heavy trade of 97.5
\nmillion shares, as investors believed the company would remain
\nahead of its regional competitors. At least nine budget airlines
\nwill be operating in Southeast Asia by the end of 2004.<\/p>\n
\"We'll be there in the skies of Asia, ahead of our
\ncompetitors,\" said AirAsia Chairman Pahamin Rajab. \"We have
\nentrenched ourselves and made our brand well-known.\"<\/p>\n
AirAsia's initial public offering of 700.5 million shares
\nraised about 800 million ringgit for the airline and more than
\n160 million ringgit for private stake holders.<\/p>\n
The company, which began operations in early 2002, offered 80
\npercent of the shares to institutions at a price of 1.25 ringgit
\nand the rest to retail investors. Institutional investors usually
\npay a premium to the final retail price.<\/p>\n
AirAsia currently operates 22 planes. It carried 1.8 million
\npassengers in 2003 and expects 3.2 million passengers this year,
\nrising to 6 million in 2005.<\/p>",
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