We’ve known AirAsia as a great budget domestic and international airline just like Cebu Pacific and Philippine Airlines and especially during seat sales. Just recently, there’s been circulating news that this airline company will soon go public. However, per its CEO, the company won’t commit to any timeline. This means that the plan for initial public offering won’t have a fixed schedule for now but it’s definitely going public anytime after this period. The company disclosed that since they are still making money and it’s in great condition, they don’t think that they need to commit to a timeline. From there, the company will have to see the results before making any specific plans.
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Last month, the company is looking forward to launching its initial public offering by the third quarter of 2020 to the first quarter of 2021. That’s basically one year from now. In preparation for its IPO, the firm is still undergoing a restructuring, which may be the reason why it hasn’t committed to a timeline yet. The Philippine unit of AirAsia had delayed its planned initial public offering several times now because of the volatility in the market and we cannot blame them for doing such actions.
For AirAsia, the Philippines is a diamond in a rough. For so long, the Philippine unit of AirAsia has been a problem for the company but now, it has been doing so well. The potential is great in the Philippine economy since it is located in the borders of China, Korea, Taiwan, and the East Coast of America. Since the company is doing good, it plans to wait for fair valuation before it could schedule its IPO. F&S Holdings, Inc., a major stakeholder of Philippine AirAsia is still looking at a $1-billion valuation for the firm.
AirAsia is targeting to reach a net income of P2 billion and P29 billion in revenue. Last year, the company reported a loss of P2.11 billion. Meanwhile, during the second quarter of this year, the company saw a 777% increase in net income or equivalent to P593.07 million. The revenue rose to 38% to P7.51 billion in the same period. During the previous year, AirAsia was able to accommodate more than 90 million guests and now that the operational efficiencies have significantly improved and there are 50 more seats per aircraft, the firm is looking to fly more passengers in the years that will come.