AirAsia continues growth, looks to add Vietnam to the mix
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AirAsia
AirAsia released its year-end results 31-Aug-07, with the figures showing healthy growth in net profits (up 147% to USD142.4 million) and passengers, with its 8.7 million passengers carried up 53% on FY2005-06s 5.7 million.
And the carrier, which also announced it will convert its financial year reporting to a YE-31-Dec calendar, is plainly still in growth mode, both organically and through joint venture partnerships.
Its organic growth will be assured through the net addition of 18 aircraft that is scheduled for the next 12 months. The incremental aircraft will mean unit growth of 49 percent, which is all but guaranteed to fuel similar levels of passenger growth.
The carrier’s joint venture-led growth – which so far has seen branded carriers join the national industries of Thailand and Indonesia – looks set to pick up speed, with fast-growing Vietnam the newest point of arrival.
The company announced that it has signed a letter of intent with Vietnamese ship-builder Vietnam Shipbuilding Industry Group (Vinashin) to establish a jointly owned LCC – Vina AirAsia. Although details remain vague, Vinashin would own 70% of the venture and AirAsia 30% (the most allowed under Vietnamese law). The Malaysian company will be the second foreign airline to invest in Vietnam’s nascent LCC sector, after Qantas’ 30% stake in Pacific Airlines.
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AirAsia continues growth, looks to add Vietnam to the mix 
