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AirAsia X Berhad • Annual Report 2014
GROUP CEO’S STATEMENT
PT Indonesia AirAsia Extra (IAAX)
Following the award of its Air Operator’s Certificate (AOC)
in August 2014, PT Indonesia AirAsia Extra (IAAX) faced a
series of administrative setbacks which caused a delay in
its inaugural flight. Its first ever commercial flight took off
on 19 January 2015 from Bali to Taipei. This was followed
by the eagerly awaited Bali to Melbourne flight on 18
March 2015, upon relevant approvals from Australia’s Civil
Aviation Safety Authority.
OUTLOOK
Although AirAsia X was not spared the challenging aviation
environment in 2014, we believe that with strategic
capacity management and route alignment, along with
dedicated efforts to increase our operational efficiencies,
we have what it takes to drive the company forward.
Much focus will be directed on our two newly established
regional associates, which present vast potential for
business growth, as we chart new routes to cater to
demand. TAAX achieved its first profit in December 2014
and we hope to see further increases in its bottom line.
While it is too soon to make a statement on IAAX, we can
reasonably expect our Indonesian associate to follow in
the footsteps of its Thai counterpart.
Other than contribute to AirAsia X’s balance sheet, TAAX
and IAAX will serve as new focal points of growth for
the AirAsia X brand and strengthen our position in each
market we serve as, now, customers have multiple direct
flight options to choose from. Adding to that, connectivity
presented by the AirAsia Group’s short-haul flights opens
a whole new vista of travel options for the more than 630
million people in the Asean region.
At MAAX, meanwhile, our main concern will be to
continue with the route rationalisation programme we
embarked on in 2014 to increase yields. At the same time,
we will intensify all efforts to create greater operational
efficiencies – enhancing internal processes as well as
deriving synergies from the AirAsia Group – to further
improve our customer delivery and keep our costs down.
As always, we will drive a greater take-up of ancillary
products and service offerings, and have high hopes of two
new introductions in particular catching on strongly. These
are the new BIG prepaid MasterCard which, as a loyalty/
payment hybrid card, will promote greater spend not only
on the ground but also on the in-flight Duty Free mall which
is set to get bigger and more exciting.
We have not wavered in our belief that Asia is ripe
for a low-cost long-haul carrier. Now that AirAsia X
is establishing hubs across the region, we are better
positioned to supply the latent demand that exists. Our
ultimate aim is to connect Asian cities with only one transit
stop within our unique multi-hub network. With a new and
invigorated management team, and associate companies
that will feed into our growing network, we feel confident
that AirAsia X is entering a new and very exciting phase
that will eventually lead to the realisation of our vision…
God willing.
Two developments early in 2015 stand us in better stead
to embark on our expansion plans. Firstly, as announced in
our 4Q2014 results, we intend to undertake a rights issue
of close to RM400 million to reduce our short-term debts
and raise the capital needed for our envisaged growth.
Secondly, we have just passed one of the most stringent
international audits on airline operational management
and control systems. As of 16 April 2015, we are officially
IATA Operational Safety Audit (IOSA) certified, which is
an incredible boost to our brand and speaks volumes of
our safety standards. With this certification – which is
recognised by the US Federal Aviation Authority (FAA),
Australia’s Civil Aviation Safety Authority, Transport
Canada and Europe’s Joint Aviation Authority – we are
well poised to explore destinations in the United States
and Europe, as had been originally intended.
I would like to take this opportunity to thank all our
stakeholders – including our partners, the regulatory
authorities and shareholders – for your continued support.
To our guests, rest assured that your interests – and
especially your safety – lie foremost in our minds. And to
all our 2,903 Allstars in Malaysia, Thailand and Indonesia,
keep up the excellent work. We’ve come quite some
distance in our eight years of existence, but like our flight
operations, we’re in this together for the long haul!
