ID :
160776
Mon, 02/14/2011 - 09:11
Auther :
Shortlink :
https://oananews.org//node/160776
The shortlink copeid
Airasia To See Long-Term Benefit From A320 Delivery Deferment
KUALA LUMPUR (Bernama) - Malaysia-based low-cost airline AirAsia Bhd will see long-term benefit from its decision to defer the delivery of 10 of its A320 to financial year ending Dec 31, 2015 from financial year 2012.
The budget airline would be enjoying more efficient aircraft, the A320 new generation in the later years, said Kenanga Research in its company update.
With the deferment, AirAsia's balance sheet is expected to be manageable with down trending net gearing from 2.5 times to 2.0 times by financial year ending Dec 31, 2012, it said.
AirAsia said the deferment was to allow the group to switch from its order of the classic Airbus A320s to a newer variant, A320 NEO, which is designed to reduce fuel consumption by 8 to 15 per cent.
It said AirAsia's coming fourth quarter 2010 results (to be released later this month) are expected to report more favourable numbers on the back of 15 per cent increase in revenue passenger kilometres and 12 per cent passenger flown.
The research house said that it did not expect the low-cost carrier to impose fuel surcharge at the current crude oil price between US$90 and US$100 per barrel as its ancillary income would be enough to mitigate the oil price hike impact.
It expects AirAsia to impose fuel surcharge when crude oil price
increases to more than US$120 per barrel.
It maintained a "buy" call with unchanged target price at RM3.08 based on the 12 times price earning for financial year 2011.
Meanwhile, ECM Libra Investment Research expects the change of delivery schedule to increase AirAsia's earning per share for financial year 2012 by 6.2 per cent as a result of lower depreciation and finance cost, after accounting lower aircraft lease income.
It maintained a "buy" call recommendation on AirAsia's target price of RM3.50 based on the 10 times 2011 financial year earning per share.
OSK Research made no changes to AirAsia's earnings estimates as the
aircraft delivery was within the assumptions of the average of 12 aircraft being deployed in 2012, taking into consideration that some of the aircraft will be delivered towards the year-end before the peak travel period.
It also maintained a "buy" call recommendation on AirAsia and RM3.78 target price was retained premised on the global low-cost carrier's peer average of 12 times price earning.
"We expect AirAsia to report strong fourth quarter numbers that are likely to beat our full year earnings forecast given the encouraging 82.5 per cent load factor achieved which bodes well in boosting profitability margins," it added.
(US$1=RM3.05)
The budget airline would be enjoying more efficient aircraft, the A320 new generation in the later years, said Kenanga Research in its company update.
With the deferment, AirAsia's balance sheet is expected to be manageable with down trending net gearing from 2.5 times to 2.0 times by financial year ending Dec 31, 2012, it said.
AirAsia said the deferment was to allow the group to switch from its order of the classic Airbus A320s to a newer variant, A320 NEO, which is designed to reduce fuel consumption by 8 to 15 per cent.
It said AirAsia's coming fourth quarter 2010 results (to be released later this month) are expected to report more favourable numbers on the back of 15 per cent increase in revenue passenger kilometres and 12 per cent passenger flown.
The research house said that it did not expect the low-cost carrier to impose fuel surcharge at the current crude oil price between US$90 and US$100 per barrel as its ancillary income would be enough to mitigate the oil price hike impact.
It expects AirAsia to impose fuel surcharge when crude oil price
increases to more than US$120 per barrel.
It maintained a "buy" call with unchanged target price at RM3.08 based on the 12 times price earning for financial year 2011.
Meanwhile, ECM Libra Investment Research expects the change of delivery schedule to increase AirAsia's earning per share for financial year 2012 by 6.2 per cent as a result of lower depreciation and finance cost, after accounting lower aircraft lease income.
It maintained a "buy" call recommendation on AirAsia's target price of RM3.50 based on the 10 times 2011 financial year earning per share.
OSK Research made no changes to AirAsia's earnings estimates as the
aircraft delivery was within the assumptions of the average of 12 aircraft being deployed in 2012, taking into consideration that some of the aircraft will be delivered towards the year-end before the peak travel period.
It also maintained a "buy" call recommendation on AirAsia and RM3.78 target price was retained premised on the global low-cost carrier's peer average of 12 times price earning.
"We expect AirAsia to report strong fourth quarter numbers that are likely to beat our full year earnings forecast given the encouraging 82.5 per cent load factor achieved which bodes well in boosting profitability margins," it added.
(US$1=RM3.05)
