Overview
- Fernandes, speaking in a video interview late Wednesday, said he is preparing to launch a new airline within one to two months and is already reallocating some planes to the venture.
- To support growth, AirAsia is preparing a bond sale of up to US$600 million and is in talks with Malaysian banks on a large refinancing to cut interest costs, with outreach planned to Canadian pension funds.
- The carrier confirmed a firm order for 150 Airbus A220 jets, with options for 150 more, adding smaller aircraft geared for wider regional routes across Asia.
- After jet-fuel prices jumped during the Iran conflict, AirAsia cut some flights and kept its policy of not hedging fuel, with Fernandes arguing prices will fall over time.
- AirAsia shares have dropped about 35% since the Iran war began, and Fernandes said the company is unlikely to meet its initial profit target even though full-year revenue should be close to prior guidance.