Wow, AirAsia share price is having a exceptional rally since early of July. AirAsia has up for more than 80% just within 3 months, the history highest since it's listing. This might be due to the share accumulation from EPF, greatly improved earnings and brighter future earnings from investors point of view.
No doubt, AirAsia fundamental looks quite good, as more and more people get to know about this brand and use it's services, while it is aggressively developing more new routes, like the launching of Tokyo, Japan on last week. It's not only benefit to those who like to travel around, but also bringing the company to a better prospect.
Nonetheless, AirAsia's low-cost long-haul unit, AirAsia X, announced to the media today that it is trying to propose listing to raise funds for fleet expansion in second half of next year. No doubt, the capital raised shall be used to buy more plans to serve more routes and customers. It is almost the same strategy as AirAsia business.
Have you try AirAsia X before? I personally have heard a lot of complaints about it. It's not about the service, it's about the comfortability and the hidden cost involved. Yes, we don't mind to save our hard earn money sitting on a chair for 3 to 4 hours. But how about 6 or more hours like to Auckland or London? Even Dato Tony admitted that it might a big risk to go full swing in this long-haul market.
My another concern... Is AirAsia X has better stewardess quality?
Anyway, opportunity always comes with risks, so AirAsia X would have to solve this problem before the listing. I believe they can and will do better. For me, even though I love AirAsia because I'm a regular customer of AirAsia, I won't consider invest in aviation business. Perhaps I'm influenced by Warren Buffett theory.
P/S: On last week, I encountered a security issue in AirAsia payment web page, even though it is encrypted. I've reported this issue to AirAsia customer service and hope their IT team will fixed it soonest.
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