Published: Wed, January 10, 2018
Business | By Tara Barton

Uber and AirAsia pair up to reach consumers in 16 different markets

Uber and AirAsia pair up to reach consumers in 16 different markets

The company will seek approval at AirAsia India's next board meeting to pick a banker to start the preliminary process for the IPO, Fernandes said on Twitter. Analysts giving zero value to AirAsia India.

The joint venture of Malaysia's AirAsia Berhad and India's Tata Sons, which started operations in June 2014, has accumulated losses of Rs485 crore and continues to make losses in a market that is the fastest growing in the world.

The Bengaluru-based airline will take advantage of the strong markets of AirAsia Berhad in Malaysia and then expand its capability in India. "It's a very valuable asset with huge growth potential".

However, she said if the Indian venture grew its fleet to 20 and turned profitable, AirAsia's 49% stake could be worth $200 million based on listed Indian airline rivals. "Not far from 20 planes and a potential IPO", he tweeted. The rest is held by R. Venkataramanan (1.5 per cent) and S Ramadorai (0.5 per cent).

According to Indian regulations, airlines need to have a fleet of at least 20 aircraft to fly on global routes.

The announcement came after AirAsia received shareholders approval on Monday to transfer all the company's shares to an investment holding entity known as AirAsia Group by March.

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The forward also spent a season on loan at Brighton where he scored five goals in his 27 appearances on their way to the play-offs.

To go for a public issue the airline needs to show profit and industry sources expect the airline to consolidate operations and post profit before going public.

Public listing guidelines of Sebi, however, mandates that to become eligible for IPO, a company should register average pre tax profit of Rs 150 million for at least three fiscal.

There is, however, another entry norm through the QIB (qualified institutional buyer) route.

AirAsia India had posted a loss of Rs 16.40 crore for the September quarter compared with a loss of Rs 62 crore in the same period a year ago.

The firm will require additional capital injection before an IPO and will face tough competition from airlines like IndiGo, SpiceJet, Vistara which are also expanding, Crucial Perspective noted.

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