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Is AirAsia India planning an IPO?
The global CEO of the low-cost carrier took to Twitter to hint at a possible public float of his airline’s Indian arm.
“Analysts giving zero value to AirAsia India. Not far from 20 planes and a potential IPO,” Tony Fernandes tweeted.
He went on to say that at Air Asia India’s next board meeting, the airline would seek approval to pick a banker and start the preliminary process.
The Malaysian airline has so far had a tough time breaking into the ultra-competitive and crowded Indian aviation market.
The joint venture of Malaysia’s AirAsia Berhad and India’s Tata Sons — where the latter has controlling stake — started operations in June 2014. It it yet to turn profitable, although the loss margins have begun to narrow. The relationship between the partners appears to have soured on an off, with the Tatas later forging another partnership with AirAsia’s regional competitor Singapore Airlines to set up another domestic airline, Vistara.
The Tata group has not issued a statement so far on a possible IPO for AirAsia India.
AirAsia India has 13 planes in its fleet and flies to 16 destinations.
In an interview with BusinessLine , Fernandes had said that the airline was targetting increasing fleet size to 20 by mid-2018.
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