AIRASIA'S UNITS IN INDONESIA AND THAILAND GAINING SUBSTANTIAL MARKET SHARE

KUALA LUMPUR, May 4 (Bernama) -- AirAsia Bhd's units in Indonesia and
Thailand are gaining substantial market share and a strong foothold in the
respective countries, says ECM Libra Capital Sdn Bhd.

Despite higher jet fuel costs, demand is looking up for Indonesia AirAsia
(IAA) and Thailand AirAsia (TAA), it said in a research note Wednesday.

In the first quarter 2011, IAA's passenger traffic rose 33.1 per cent
year-on-year to 1.5 billion, with the load factor up 2.5 percentage points
year-on-year to 80 per cent.

Likewise, TAA's traffic grew 23.5 per cent year-on-year to 1.9 billion as
the first quarter is usually the peak season for tourism. The load factor was up
by 4.6 percentage points year-on-year to 84 per cent.

ECM Libra maintained a "buy" call on AirAsia.

According to AirAsia, both IAA and TAA will focus on improving their market
share for international routes and identify, create and interconnect new
uncharted routes through existing hubs.

ECM Libra said AirAsia's affiliates are currently preparing for their
upcoming initial public offerings and listings, which are expected to take place
in the fourth quarter of this year.

TAA is looking to raise US$150 million from the exercise while IAA plans to
raise between US$150-US$200 million in proceeds. This is to finance future
growth plans, including capacity expansion and acquisition of aircraft.

"As part of the listing exercise, accumulated debts may be cleared, which
means AirAsia may start recognising earnings from IAA and TAA through its 49 per
cent stake in the units.

"Based on the 49 per cent stake, AirAsia would be able to gain an additional
RM224 million (US$74.66 million)) in earnings," ECM Libra said.