Posted Date: Monday, 4-Jun-2012
Asia Aviation Limited or AAV, major shareholder of Thai AirAsia, strides confidently into the Stock Exchange of Thailand under Transportation and Logistics Sector today (31 May, 2012), achieving as expected response. AAV executives confirm confidence, announcing a growth target of 20-25% annually and assure financial strength for ASEAN trade liberalization, driving up market capitalization by 20 billion THB and attracting more international interest to the Thai stock market.
Mr. Tassapon Bijleveld, CEO of Asia Aviation or AAV (a major shareholder whose holding is only in Thai AirAsia) and of Thai AirAsia, proclaimed that the response from AAV IPO was as expected and was a mark of pride for his executives and employees of Thai AirAsia as on this day (31 May, 2012) AAV has become a listed company on the Stock Exchange of Thailand. He stated that this leap would strengthen Thai AirAsia’s financial position and equipped it for further competition, particularly in correspondence with more liberalization in the ASEAN market. He said further that such step would enhance a good corporate governance together with strong growth, emphasizing our leadership in the Asia’s low-cost air travel market.
“For the management and myself, today is not yet the pinnacle of our achievement, but rather the bright beginning of the next stage in Thai AirAsia’s strong and stable growth. I assure to you all that we will continue to work together with determination to achieve the highest market share in Thailand’s air travel industry in terms of passengers within the next 5 years, having our investors witness the growth with us throughout the journey”.
Mr. Tassapon also spoke of Thai AirAsia’s growth strategy, saying that AAV’s listing on the SET would strengthen its financials and allow more effectiveness of cost management, in terms of lowest cost in procuring aircraft either through purchase or lease. The airline will gradually take deliveries of new Airbus A320 towards a fleet target of 48 aircraft by the end of 2016 (from a current fleet of 24 aircraft). The fleet expansion will allow the Company to continuously increase the frequency of its flights as well as more new routes. Our plans are to penetrate into a fast growing tourism market among the world’s most populated countries such as China and India and to establish new hubs in Hat Yai and Udon Thani following the success of Thai AirAsia hubs in Bangkok, Phuket and Chiang Mai, contributing an average growth of 20-25% per annum. Such clear goals and directions could draw shareholders and investors’ confidence in AAV as one of the high potential growth stock in the future.
Ms. Suvabha Charoenying, Managing Director of Thanachart Securities Public Company Limited, speaking as a financial adviser and a joint Thai lead underwriter of AAV’s IPO, urged investors for confidence in the fundamentals of AAV, as she said is one of the year’s most noteworthy growth stocks. Ms. Suvabha expects AAV’s trading on the SET to enliven the market and gain a boost of 20 billion THB market capitalization.
Mr. Suchai Sutasthumkul, Chief Executive Officer of CIMB Securities (Thailand) Co., Ltd., speaking as a joint Thai lead underwriter of AAV’s IPO, remarked that in his years as an underwriter, AAV stock has proven to be one of the most eagerly anticipated stocks by investors, providing a good indication of the prospects and growth potential of Thai AirAsia as it has been Thailand’s most rapidly expanding low-cost airline.
Mr. Pornchai Prasertsintanah, Managing Director of Credit Suisse Securities (Thailand) Limited, added that AAV stock has brought a key opportunity to the Stock Exchange of Thailand as one of the major stocks to attract investors from all over the world. Despite concern over the economic situation in Europe, Mr. Pornchai said investment in Asia, especially in the ASEAN region should continue to be lively with great potential, thus, having another new stock with the size such as AAV added onto the SET would entice higher interest towards investment into the Kingdom.
In celebration of Asia Aviation Limited, or AAV, majority shareholder of Thai AirAsia's first day of trade on the Stock Exchange of Thailand, over 50 Thai AirAsia staff; from reception staff to ground crew, engineers to administrators, surprised the airline's passengers with a surprise flash-mob performance at Suvarnabhumi Airport's Row E Check-in counter. The sudden burst of music and dance drew the attention of surrounding travelers whose applause served as a fitting congratulation for the momentous occasion.