-0.04 (-0.98%)

23/05/2019 (16:39)

1.) What is Asia Aviation Public Company Limited’s business?


Asia Aviation Public Company Limited (Asia Aviation) is a holding company, which makes an investment only in the low-cost carrier business under Thai AirAsia Company Limited ("Thai AirAsia").

2.) What is Asia Aviation's dividend policy?


Asia Aviation may consider paying dividend by taking into account the performance, liquidity, current cash flow and financial status; the provisions and conditions regarding dividend payment as provided in the load agreements, debentures or any related contracts that Asia Aviation are obliged to comply with; future business plans and capital requirement for investment; as well as other factors as deemed appropriate by the board of directors.

3.) How does AirAsia Berhad, which is owner of AirAsia brand, control or manage Thai AirAsia's plan?


Thai AirAsia is operated by the Company’s Board of Directors. Decision to engage in the transactions are made by Thai AirAsia which have to pass the resolution from the Board of Directors and the Audit Committee of Asia Aviation, a listed company in the stock exchange of Thailand.

4.) What is shareholding structure on Thai AirAsia X? How will it impact to Thai AirAsia?


Thai AirAsia X's major shareholders are involve with Mr. Tassapon Bijleveld a major portion under the Thai portion with a smaller portion goes to the local Thai partner, whereas, AirAsia X (Malaysia), who hold 49%, on the foreign portion. Asia Aviation has confirmed upon NO involvement in this set-up.

Thai AirAsia X is flying medium-long haul; it will act as a feeder in bringing more people to Thai AirAsia, connecting people from Japan, Korea and Australia to Thailand.  Also, Thai AirAsia X will not have same route as Thai AirAsia as Thai AirAsia X route will fly 4-8 hour time while Thai AirAsia route will within 4 hour time.

5.) As the Baht appreciates, what will be its effects on Asia Aviation?


As most of Thai AirAsia’s operating costs (A subsidiary of Asia Aviation) are in USD (i.e. fuel costs, aircraft lease and maintenance expenses), appreciation of Thai Baht is in favorable to Asia Aviation. However, Asia Aviation is keeping a close monitor upon locking the rate through hedging the foreign exchange exposure in order to minimise foreign exchange risks. Other than the natural Foreign exchange hedging that we are doing, our initiatives include matching our revenue and cost within the same currency first.