OSK maintains 'buy' call for AirAsia

OSK Research maintains a "buy" call on AirAsia following the strong load factor and the potential set up of Singapore

AirAsia.



By optimising its fleet via longer utilisation hours and short-haul
routes, the budget airline continued to succeed in sustaining above 80
per cent load factor in April, exceeding the forecast, OSK said.



On the potential set up of Singapore AirAsia, the company would be
night stopping its aircraft at the Changi International Airport in the
near term, in accommodating early morning flights departing from
Singapore.



In a research note today, OSK said the recruitment of cabin crew was
already ongoing and this could be a prelude to the setup which would be
a boost to earnings for AirAsia given that Changi was an international
transit point and a sweet spot in luring passengers.






Meanwhile, OSK viewed the airline's move to shift its regional
headquarters to Jakarta sometime this year as to gain more recognition
from the Indonesian government.



Indonesia AirAsia is the only airline operating in the country within a clean safety track record.



"This would lead to securing more new routes given the buoyant demand for air travel," it added. -- Bernama