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AirAsia speaks out against negative claims


Airline expects “very good year” despite critical report
AirAsia has spoken out against negative claims about its accounting practices after a critical report by analysts emerged.
Hong Kong-based GMT Research said last week that it had written a report on the airline “which questions its accounting, profit generation, cash-flow issues, leverage and group structure”.
AirAsia issued a statement after a subsequent fall in its share price: “The management believes that 2015 will be a very good year on the back of a better operating environment with lower fuel price and a much more rational market, and the company has shown good progress through its [first-quarter] performance.”
The company is based in Malaysia but has a number of other affiliates. Rather than owning airlines across Asia directly, it takes minority stakes to get around regulatory restrictions. One of these, Indonesia AirAsia, lost one of its planes in a crash last December that killed 162 people. AirAsia says that IAA was “on a good recovery track prior to the QZ8501 incident”.
TTG Digital


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