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AirAsia X Berhad • Annual Report 2014
WITH NEW MANAGEMENT IN PLACE, THERE ARE SOME
VERY FOCUSED INITIATIVES TO FURTHER STRENGTHEN
THE FUNDAMENTALS OF THIS AIRLINE WHICH WILL
ENSURE OUR LONG-TERM FINANCIAL VIABILITY.
Assalamualaikum Warahmatullahi Wabarakatuh,
The year 2014 was one of the most challenging for the
global aviation industry and certainly in Malaysia’s history,
with three unfortunate incidents involving Malaysian
owned or linked carriers. Although customer confidence
picked up following the first incident, in March, the
rebound was short-lived as the second incident in July
served to cause a dip in air travel again. This time, reduced
passenger loads were observed until the final quarter of
the year.
In response to a markedly lower volume of air travellers,
airlines in the region have been competing more
aggressively for the smaller pool of passengers, pushing
down prices and affecting margins industry-wide.
Despite the challenging operating environment, the
Group’s revenue increased by 27% to RM2.9 billion from
RM2.3 billion in 2013. However, due to high fuel costs and
foreign exchange losses from a depreciating Ringgit, we
made a loss after tax of RM519.4 million.
AirAsia X continued to forge ahead with our regional
expansion plans. In this regard, I am very pleased to share
that the year marked two significant milestones, namely
the launch of our Thailand and Indonesian affiliates. Thai
AirAsia X (TAAX) was officially launched on 22 April and
its maiden flight took off from Don Mueang International
Airport to Incheon, South Korea on 17 June. PT Indonesia
AirAsia Extra (IAAX) obtained its Air Operator’s Certificate
(AOC) on 28 August 2014.
Both operations mark the beginning of our strategic multi-
hub plan, which we expect to increase passenger traffic
across not only the AirAsia X Group but also within the
larger AirAsia Group, with which we will be working
closely to derive greater synergies. TAAX has commenced
on a positive note and we are confident that IAAX, which
is the first long-haul low-cost carrier in Indonesia, will
similarly begin to register healthy returns.
Another highlight of the year was the move to the brand
new klia2, which is bigger and therefore more spacious
than our previous home in the Low-Cost Carrier Terminal
(LCCT). This new airport allows us to expand our passenger
base by building our Fly-Thru business together with
AirAsia to ensure Kuala Lumpur remains the main transit
hub for low-cost carriers in Asia.
CHAIRMAN’S STATEMENT
With the enhanced facilities we are able to provide our
passengers at klia2, I am sure that AirAsia X will continue
to be passengers’ airline of choice. I am pleased to
share that in 2014, we were recognised for the second
consecutive year as the World’s Best Low-Cost Airline for
Premium Class Seats and Premium Cabin by Skytrax; and
were named the Best Airline in the
Expatriate Lifestyle’s
The Best of Malaysia Awards.
BOARD CHANGES AND APPRECIATION
There have been some changes on the Board and among
our major shareholders too. During the year, we bade
farewell to Mr Kiyoshi Fushitani and Mr Asher Noor. Mr
Fushitani had been appointed to the Board in November
2012 while Mr Asher started off as an Alternate Director
in October 2010 and became a Director in December 2013.
On behalf of the Board, I would like to thank them for
their contributions and wish them the best in their future
undertakings. Meanwhile, the current Board remains
committed to AirAsia X and will continue to assume an
active role in all major decisions taken as well as the
Company’s strategic direction.
On behalf of the Board, I would like to take this opportunity
to thank our valued shareholders for your continued
support, especially during this period of uncertainty. I
would like to assure you that, with a new management
in place, there are some very focused initiatives to further
strengthen the fundamentals of this airline which will
ensure our long-term financial viability. We have already
hedged a significant volume of our jet fuel for the year 2015
at an attractive price, launched rights issue to strengthen
our cash position, and we have also embarked on more
strategic capacity management to increase yields. With
this, we stand in a better position to build a momentum
of growth for the benefit of the Company, our shareholders
and all other stakeholders.
Thank you for your support and loyalty.
