StockWatch AirAsia shares actively up after saying it will move to klia2 by May 9

by **Cals** Thu 17 Apr 2014, 01:09

StockWatch AirAsia shares actively up after saying it will move to klia2 by May 9

Business & Markets 2014

Written by Bernama

Wednesday, 16 April 2014 11:02

KUALA LUMPUR (April 16): AirAsia Bhd emerged among the most active stock this morning following its announcement to move to Kuala Lumpur International Airport 2 (klia2) by May 9.

As at 10.13 am, the low-cost airline's share price rose three sen to RM2.30 with 493,300 lots changing hands.

The airline has made the necessary preparations to move into klia2, in line with the Operational Readiness and Transfer (ORAT) specifications, said its Executive Chairman Datuk Kamarudin Meranun in a statement yesterday.

Meanwhile, Alliance Research said the potential hiccups that could arise due to the short ORAT process was not a major concern.

It said any issues from the process would be transitory in nature and be sorted out in due course with minimal impact on the long-term operations of the airport.

"We do not expect any safety issue to arise, given the intense expert scrutiny on klia2," it said in a note today.

Alliance Research was also optimistic on the prospects of the domestic aviation sector following the announcement, as it represents the final key milestone in the successful opening of klia2.

"This marks the beginning of a new growth phase for both the domestic low cost carriers (LCCs) and Malaysia Airports Holdings Bhd (MAHB)," it added.

Alliance Research said carriers currently operating from the Low Cost Carrier terminal such as AirAsia and AirAsia X would be able to command a higher fare at klia2 with its better connectivity and amenities.

Meanwhile, MAHB added one sen to RM8.09 with 13,400 lots changing hands.