AirAsia X confident of landing maiden profit

AIRASIA X (5099) chief is optimistic that the airline will make a small profit for the year 2009.

"We tripled our business in the first nine months of 2009, a few routes saw 75 per cent growth despite numbers of other airlines shrinking, and we had a phenomenal December. We are happy we survived," Azran Osman-Rani said.

This will be the first time the airline will make a profit after being in operations for almost three years.

Azran said its numbers are yet to be audited, but the performance of the carrier in the first three quarters was promising.
"I believe that once the numbers are tallied, we will prove that we really do have the lowest unit cost per available seat kilometre at three US cents in 2008 and 2009 ..., even with fuel being what it was," Azran said.

Its low unit cost has been key to the airline's ability to survive, with all the challenges airlines have been facing in filling up planes.

The year 2009 is seen as a growth expansionary year, with AirAsia X growing its fleet size to eight planes and nine destinations by the end of the year.

On his plans for this year, Azran said one thing the turbulence in 2009 had taught him was to be flexible.

"We started the year (2009) with many plans, but what 2009 taught us was we really needed to be nimble and flexible. Which is why we now have not only plan A, but also B and C," he said.

The long-haul budget carrier is expecting another four A330s this year, bringing its fleet up to 12 by the end of 2010.

The deliveries for the planes are expected to start in June.

On financing for the four planes coming in this year, some proposals have been received and the airline is looking at a mix of financing possibilities, Azran said.

Besides export credit agency-backed financing, airlines can also finance aircraft purchases via conventional loans, and sale and leaseback of planes.

While Azran declined to reveal the amount of financing the airline would need, earlier reports had put the price of three planes at RM2.16 billion.

Recently, AirAsia X announced that it will be suspending its KL-Abu Dhabi route this month as it is realigning its fleet and adding another five destinations in India from May 2010.