Bernama.com
Malaysian National News Agency

AirAsia, AirAsia X Shares Up On Possible Route Recalibration
Business
January 12, 2018 12:51 PM
KUALA LUMPUR, Jan 12 (Bernama) -- The shares of budget airline AirAsiaand its long-haul affiliate, AirAsia X,were up in the morning session today.

It comes onthe back of a series of tweets by AirAsia Bhd's Group Chief Executive, Tan Sri Tony Fernandes, hinting at a positive route recalibration involvingboth airlines.

At 11.03 am, AirAsia shares perked seven sen to RM3.84 with 3.82 million shares changinghands, while AirAsia X shares improvedhalf-a-sen to 38.5 sen with 7.47 million sharestransacted.

Fernandes, in his tweet, said AirAsia would be transferring routes that are over four hours to AirAsia X as AirAsia has matured and can usethe capacity for the more profitable shorter haul routes.

He described the exchange ofroutes as a 'win win' for both airlines.

He also tweeted his prediction that this year would begoodfor AirAsia X with a further route reallocation andreduction in costs.

"Cleaning up the balance sheet in AirAsia X as we startedthe fourth quarter. 2018 looking good," he said.

He also saidthat AirAsia X isnot interested in the long haul market, naming Berlin and London among others, as the airline felt the market wasnot ready, and would remain firmly focused on medium haul routes.

-- BERNAMA

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