Ganesh Sahathevan

As reported in Forbes Asia, 12 Jan 2009: And in the third quarter, ended Sept. 30, the airline suffered its first net loss since it went public in 2004--a total of $136 million, much of that because the airline hedged against higher oil prices before they fell dramatically. More losses are coming because it thought oil prices would remain at $70, but now they've fallen below $40. Even at $50 the airline projected it would lose some $481 million on its soured hedges, though Fernandes says the lower fuel prices will allow him to make up the losses in three months. Some analysts have downgraded the stock from neutral to sell.The Group seeks to hedge this fuel price risk by entering into jet fuel derivatives contracts. ( Hit By Turbulence; Fewer people are flying, but AirAsia is deploying more planes. Tony Fernandes bet wrong on fuel prices, but his play for discount travelers may pay off. Ioannis Gatsiounis and staff ;12 January 2009, Forbes Asia .http://www.forbes.com/global/2009/01...

Malaysian plantation-to-property conglomerate Sime Darby (SIME.KL: Quote, Profile, Research, Stock Buzz) said on Monday it had obtained the government's approval to build a private low-cost carrier terminal (LCCT). The terminal will be built on Sime Darby's land in the southern state of Negeri Sembilan. "The proposed LCCT project is an integral part of the company's development plan for its Negeri Sembilan Vision City," Sime Darby said in a filing to the stock exchange (http://www.reuters.com/article/rbssConsumerGoodsAndRetailNews/idUSKLR37928920090105) The terminal will service AirAsia only: The key thing is that we cannot slow down our growth because we have bought aircraft and we need a bigger terminal. We are building for 30 million passengers and we should be supported,” he said. By having a dedicated terminal, (Tony) Fernandes said the airline could bring down its cost by 20% and this would be translated to lower fares. Asked if other airlines would be able ...