AirAsia: Improved, but needs huge capital injection

- Kamis, 27 April 2023 | 08:56 WIB
AirAsia: Improved, but needs huge capital injection
AirAsia: Improved, but needs huge capital injection

DEPOK (eNBe Indonesia) - Airliner AirAsia Indonesia (CMPP) recorded operating revenue of Rp3.78 trillion in 2022, soared from Rp626 billion in 2021 alongside lifting of most restrictions related to Covid-19 pandemic.

Net losses also narrowed to Rp1.64 trillion, but like flag carrier Garuda Indonesia, the airline needs capital injection.

Operating expenses also surged to Rp5.1 trillion from only Rp2.3 trillion in 2021, mainly due to fuel expenses of Rp1.87 trillion last year, compared to Rp332.8 billion in 2021.

Other expenses reached Rp1.1 trillion in 2022, compared to Rp227 billion a previous year, mainly because of Rp898 billion loss on forex translation.

Then CMPP, accordingly, suffered net loss of Rp1.64 trillion in 2022, but narrowed from Rp2.3 trillion loss in 2021, helped by substantial growth in revenues.

CMPP’s assets reached Rp5.3 trillion per December 2022, while liability amounted Rp12.17 trillion.

So, the airliner has capital deficiency of Rp6.8 trillion, while regulators require any airline operating in the country having positive equity.

By far, we haven’t heard of any capital injection plan. There was a plan for rights issue before Covid-19 pandemic, but aborted.

PT Airasia Indonesia Tbk is co-owned by AirAsia Aviation Group Limited (46.25%) and PT Fersindo Nusaperkasa (46.16%).

PT Fersindo is said owned by Moh Riza Chalid (MRC), a businessman widely known close to Indonesian politicians, including Surya Paloh (chairman of NasDem Party) through Johnny G Plate (secretary general of NasDem, minister of informatics and communications).

Johnny, who is implicated in the corruption case at BAKTI Kominfo, was commissioner of AirAsia for several years.

Due to the wake of the Covid-19 outbreak, airliners, including AirAsia, stopped their flights. AirAsia resumed its commercial flights in September 2021, and in gradual to operate all routes.

CMPP opted to focus on Southeast Asia region as its core market. AirAsia Group has stopped the operation of 245 aircrafts.

While the operation of new airline Super Air Jet owned by Rusdi Kirana, owner of Lion Air Group, will challenge CMPP and Citilink as Super Air Jet also serves the low cost carrier (LCC) segment.

Meanwhile Director General of Air Transportation of the Ministry of Transportation M. Kristi Endah Murni explained that the global aviation industry is currently racing in recovery due to the Covid-19 pandemic.

Kristi said several countries had issued policies to lift restrictions in an effort to revive the aviation industry, including Indonesia.

For Indonesia, the number of passenger movements departing domestically over the past year reached around 56.23 million passengers.

Meanwhile, the movement of passengers departing internationally during 2022 would reach 11.87 million passengers.

Thus the total number of passengers departing throughout 2022 would be 68.1 million passengers.

The recovery rate for domestic passenger movements during 2022 compared to the pre-pandemic period (2019), has reached 71%. The recovery rate for international passenger movements reached 33%.

In addition, CMPP plans to add 6 units of aircraft this year, to seize the opportunity for recovery in the aviation sector.

CMPP’s President Director Veranita Yosephine Sinaga explained that the addition of aircraft is in line with the recovery of the aviation industry and increasing public interest in traveling.

CMPP’s targets operating aircraft to reach 32 units this year, compared to 28 units before the wake of Covid-19 pandemic.

Currently CMPP has 26 units of aircraft, with 19 units on operational. CMPP also plans to add domestic and international routes.***

Editor: Adrianus Nulangi Madaala



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