No management shake-out, AAX to turnaround by FY15, said Tony

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KUALA LUMPUR (Nov 20): AirAsia Bhd group CEO Tan Sri Tony Fernandes today affirmed  there will not be a management shake-out in AirAsia X Bhd (AAX), as he expressed confidence a proposed revamp plan would turnaround AAX in the coming financial year ending Dec 31, 2015 (FY2015).

"We are still confident with the business model, and will support the current (AAX) management. They are unlucky in terms of timing where 2014 is challenging to the whole industry, not only them (AAX)," he said in a press conference today.

He outlined five main points about the yet-to-be finalised revamp plan:

  •  increasing revenue in the context of recovering demand in the industry
  •  increasing ancillary income
  •  slowing down capacity growth
  •  merging AirAsia and AAX departments to improve efficiency and lower cost and   
  • rationalising AAX's Australia route which has weak demand.

"The plan will be finalised by tomorrow, internally, and we will implement it right away," he said at the launch of new Asean products by AirAsia.

 AAX share price fell three sen or 4.65% to 62 sen today with 44.4 million shares done, giving it a market capitalisation of RM1.46 billion.

 AirAsia fell four sen or 1.63% to RM2.42, with 3.12 million shares traded, valuing it at RM6.7 billion.