Friday 29 Mar 2024
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KUALA LUMPUR: AirAsia Bhd shares rose as much as 7% to hit an intraday high of RM1.37 yesterday, on news that the budget airline has obtained airport incentives from Malaysia Airports Holdings Bhd (MAHB) for Langkawi International Airport.

The stock closed 6.25% or eight sen higher at RM1.36, with 53.52 million shares traded. It was the top most active counter on Bursa Malaysia yesterday. Its market capitalisation stood at RM3.79 billion.

On his Twitter feed on July 16, 2015, AirAsia group chief executive officer Tan Sri Tony Fernandes wrote: "Huge huge day for AirAsia. Got airport incentives for Langkawi. Langkawi hub a dream of mine for last 13 years a reality."

He went on to thank MAHB for having the vision to enable Langkawi to develop.

"[Lower] oil price and airports now seeing the benefit of lower charges. The wind is really behind AirAsia," he said.

Fernandes also wrote that the airline is "going to mount many flights from Langkawi".

"Great for Langkawi's tourism. More airports now see the power of AirAsia," he added.

Last week, AirAsia also commenced its inaugural flight from Kuala Lumpur to Kaohsiung in Taiwan and Pattaya in Thailand, as well as launched its Johor Baru to Bangkok route.

Shares in AirAsia X Bhd (AAX), meanwhile, closed up 10.81% or two sen to 21 sen yesterday, after a daily reported that it had attracted the attention of at least two foreign airlines looking at taking up a stake in the airline.

The stock was also one of the most actively traded counters yesterday, with 23.4 million shares changing hands. AAX’s market cap stood at RM850.37 million.

 

This article first appeared in The Edge Financial Daily, on July 21, 2015.

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