Thursday, 23 January 2014
Friday, 17 January 2014
Wednesday, 15 January 2014
AirAsia to benefit from upcoming new Indian aviation rules
NEW DELHI/SINGAPORE: India could ease restrictions that prevent some of its domestic airlines from flying on international services within a month, potentially benefiting start-ups set up by Malaysia's AirAsia and Singapore Airlines that aim to begin operations in 2014.
New Delhi is also considering a proposal to allow Airbus's A380 planes to land at local airports, aviation minister Ajit Singh said on Tuesday.
India's ban on A380s is mainly due to concerns that foreign carriers may further hurt state-run Air India by grabbing a larger share of international traffic.
Under existing rules, Indian carriers are also required to be in operation for at least five years and have 20 aircraft to be eligible to fly international routes.
Singh told reporters that New Delhi would seek the federal cabinet's approval by next month to "scrap this rule".
"At a macro level, this restores credibility to the Indian aviation sector," said Amber Dubey, an aviation expert at consultancy KPMG, of the Indian government's plans.
"It shows that the policy direction is always towards greater competition, the respect for logic, and being more aligned to global best practices," he said.
Indian conglomerate Tata Sons has formed a joint venture with SIA to start up a full service carrier, which is expected to begin operations in the second half of 2014.
Tata is also an investor in AirAsia India, which is expected to compete in the Indian low-cost market from the second half of the year. Indian low-cost carrier GoAir, which began operations in 2005 but has fewer than 20 aircraft, could also be a beneficiary.
India's overall air passenger traffic is expected to triple from 2010-20 to 452 million annually, as rising income levels help more people fly in the country of 1.25 billion.
BIG PLANS FOR BIG PLANES
Dubey said opening up the market to A380s could push down international fares as one aircraft can accommodate more passengers, keeping costs lower.
He said major airports in New Delhi and Mumbai were already in position to receive the super-jumbos, but smaller airports would need to be assessed to see if they can handle the planes.
"We have asked for comments from ground handling and immigration, security basically. Because this is the infrastructure which will be affected because one plane will have up to 500-600 passengers at a time. So we are awaiting their comments," said civil aviation minister Singh.
A change could benefit carriers like Singapore Airlines, Emirates , Lufthansa and British Airways that operate the super-jumbo and fly to India, as well A380 customers like Etihadand Qatar Airways who have not taken delivery of the aircraft.
Kingfisher Airlines was the only Indian A380 customer, but Airbus said on Monday that it had revoked that order. The Indian carrier, which had ordered five A380s, stopped operations in October 2012 after several years of losses.- Reuters
Friday, 10 January 2014
Euromoney names AirAsia “best managed company” in Asia for 2nd time
KUALA LUMPUR (Jan 10): AirAsia Bhd has been named “best managed company” in Asia for the airlines and aviation sector by Euromoney’s best managed and governed companies – Asia poll 2014.
This is the second consecutive year that AirAsia became winner of the same accolade due to the company’s focus on integration and expansion and excellent corporate foresight of the aviation industry.
In a statement Friday, AirAsia chief executive officer Aireen Omar said the achievement reflected the carrier’s commitment to ensure utmost transparency and good governance in business, in order to preserve the confidence of its stakeholders and investors.
“Total confidence and unshaken credibility is vital in our quest to expand the business and extend our reach across the region and beyond,” she added.
The poll was based on replies from 93 leading equity analysts in large investment banks and research houses in Asia Pacific region nominating 214 different companies.
Euromoney Magazine editor Clive Horwood said the continuing prominence of Asia in global markets had created new growth opportunities for Asian companies.
“Through our annual survey, leading analysts covering Asia across all sectors have rewarded well governed institutions for sound financials and transparent relations with an increasingly wider investor pool,” he said.
Furthermore, the analysts polled praised AirAsia for its leading role in promoting transparent communication to investors, citing that “the company has a clear strategy and good visibility”.
They also noted that “AirAsia senior management continues to demonstrate prudent gearing, transparency, good governance and clear articulation of strategy.”
Tuesday, 7 January 2014
MATRIX Concepts value seen fair at RM5
MATRIX CONCEPTS HOLDINGS BHD
By RHB Research Institute
Buy
Target Price: 5.00
MATRIX Concepts Holdings Bhd’s (MCH) catalyst this year would be the acquisition of land to extend the Sendayan Tech Valley (STV). The acquisition is intended to not only sustain sales of industrial land, but more importantly, to boost job opportunities and hence, create spillover demand for properties in Bandar Sri Sendayan (BSS).
In addition, the completion of the Tentera Udara Diraja Malaysia complex Seremban Toll and new link to KLIA in two to three years’ time will expand the population catchment and improve accessibility to BSS/STV.
RHB Research Institute has initiated coverage on MCH with a “buy” and RM5 fair value.
It says that MCH is not vulnerable to the recent (property) tightening rules due to its its focus on mid-end housing. MCH is one affordable housing player that it believed may follow Tambun Indah and Hua Yang’s footsteps in being re-rated.
The successful sale of Kalista condos in Seremban 2 by IJM Land Bhd at end-2013 is a sign of the strong pent-up demand for mid-end housing within the locality.
RHB said that MCH’s gross margin of about 40% is above the sector’s between 20% and 25% average.
It estimated earnings growth of 14% to 15% for financial year 2014 (FY14) and FY15.
The company’s net cash of 64 sen per share and solid balance sheet will underpin its attractive dividend payout and at the same time provide scope for a bonus issue, it adds.
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