AirAsia India IPO not far: Tony Fernandes

AirAsia India, the low-fare airline co-owned by AirAsia Berhad, Malaysia and Tata Sons, is planning an initial public offer of shares to list in the local bourses, a move that will likely surprise markets and experts given its small size, still-to-mature network and constant, although narrowing, financial losses.

"Analysts giving zero value to AirAsia India (sic). Not far from 20 planes and a potential IPO," Tony Fernandes, CEO of its Malaysian parent tweeted this morning.

"AIRASIA will be seeking approval at the next AIRASIA India board to pick a banker to start prelim process. Very valuable asset with huge growth potential," he added.


Fernandes also said a banker will be appointed to find a strategic partner for the Malaysian carrier's outsourced services unit AirAsia Global Shared Services.

AirAsia Berhad and Tata Sons own 49 per cent each in AirAsia India. The rest is owned by Chairman S. Ramadorai and director R. Venkataramanan.
Fernandes' IPO plans were met on Twitter with instant criticism.

"What’s the rush Tony? Get to 20 planes, fly them for couple years and show the markets you are actually making money. That would be a more opportune time to do the IPO," said a person tweeting from the handle Rohit_FP.

"What do you expect when @AirAsia holds its value as nil, per the latest financial statements?," said Ellis Taylor who tweets from Flightglobal_ET, reacting to analysts' valuation of the airline as cited by Fernandes in his tweet.

To be sure, AirAsia India's latest reported quarterly losses reduced 74 per cent to Rs 16.4 crore for July-September. But the airline has constantly been in the red, more than a year after Fernandes claimed it would start making money.

AirAsia India, the smallest domestic carrier with pan-India operations, currently has a leased fleet of 15 Airbus A320 planes and operates slightly more than 100 daily flights.