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Air Arabia, the Mena region’s first and largest low-cost carrier (LCC) operator, has launched its fifth new Russian route, Samara, after Ufa, Kazan, Yekaterburg, and Moscow. The new flights between Sharjah International Airport and Kurumoch International Airport in Russia will operate three flights weekly (Wednesday, Friday, Sunday), starting from October 1. "We are glad to announce the launch of our new route to Samara, which further expands our footprint in the Russian market," said Adel Al Ali, Group CEO of Air Arabia. The new service to Samara underscores our commitment to continuously providing our customers with affordable travel options while supporting trade, tourism, and cultural exchanges." Air Arabia’s commitment to delivering exceptional value and comfort to its passenger is reflected in its fleet of 68 Airbus A320 and A321 neo-LR aircraft, the most modern and best-selling single aisle aircraft in the world. The cabin configuration across the fleet provides added comfort with one of the most generous seat-pitch of any economy cabin.<br/>

AirAsia X is looking to raise up to MYR50m ($10.9m) through share placements, which it will use for the reactivation and maintenance of its fleet. The medium-haul, low-cost operator says it intends to issue over the shares – amounting to around 7.8% of total company shares – to two institutional investors. AirAsia X adds that the share placement – its first equity fundraising exercise in over eight years – is “timely and strategic”, and will help “bolster its short term working capital requirements” as it recovers from the pandemic. The share placement is the latest in a string of fundraising measures the carrier has undertaken. “Between 2020 - 2022, AirAsia X had implemented a number of measures to address the company’s financial concerns in the wake of the pandemic including its debt restructuring scheme and an array of corporate restructuring and cost containment exercises,” it states. As at May, Malaysia-headquartered AirAsia X has 11 Airbus A330s in service, with another six more in storage. Airline chief Benyamin Ismail says AirAsia X intends to reactivate more aircraft by the end of the year. He adds: ““We are pleased to have embarked on this new era post-Covid-19, in which we witness the return of confidence in the aviation industry, which has shown clear evidence of a rebound following three long years of stall.” Says Ismail: “With this proposed [share] placement, all indicators signal the company is moving into the right direction and will have a much stronger ground for its continued and concerted efforts to revitalise its business, as the industry’s recovery takes place in the near future.”<br/>

Airline ticket prices have peaked, at least in the market where the budget carrier AirAsia operates, according to its founder Tony Fernandes. “We are there or thereabouts,” Fernandes said on the sidelines of the Qatar Economic Forum in Doha on Tuesday. “We don’t want it to go any higher, we want it to go lower. We want to stimulate more traffic, so I think they’ve peaked.” Airfares globally remain elevated in the wake of the Covid pandemic, with capacity and staffing unable to match a sharp rebound in demand. Fernandes said there is “phenomenal” growth in Southeast Asia, and places such as the Middle East are also booming. AirAsia aims to ride the trend by launching airlines in two more countries in the Asean region, Fernandes told Bloomberg Television. In December, the company announced plans to enter Cambodia. “It really is Asia’s time for growth,” he said, without saying which new markets the airline is considering. Capital A, the holding company for AirAsia, already operates budget airlines out of Malaysia, Indonesia, Thailand and the Philippines. It shut down its operations in Japan and India in recent years. With travel rebounding, AirAsia will have all of its 210 aircraft back in service in about two months, Fernandes said. The fleet should grow to 300 planes in the next four to five years, with annual passenger traffic rising to 150m from about 80m, he said.<br/>

Bain Capital is targeting November to relist Virgin Australia Airlines through an initial public offering that could raise about A$1b ($665m), the country’s largest in two years, according to people familiar with the matter. The private equity owner plans to sell down about 40% of its stake in the carrier, which it rescued in a A$3.5b deal in 2020, said the people, who asked not to be identified as the information is private. A listing could give Virgin Australia a valuation of nearly A$2.5b, the people said. Its rival Qantas has a market value of around A$11.6b. Bain Capital and its advisers plan to resume meeting prospective domestic investors by the end of July, the people said. The airline had completed international roadshows and put the local ones on hold as Virgin Australia CEO Jayne Hrdlicka took leave around the death of husband, the people said. Deliberations are ongoing and details of the IPO including size and timeline could still change, they said. A spokesman for Bain Capital responded to a query by referencing Virgin Australia Chairman Ryan Cotton’s note to staff on May 10, seen by Bloomberg News, saying the business is in “good shape” and planning for the IPO was “well advanced.” “While there is still no date set and our ultimate window of opportunity will depend on market conditions, we are hopeful this process will progress over the coming quarters,” Cotton had said. Virgin Australia referred Bloomberg News back to Bain Capital for comment. Bain Capital was set to realize a full return on its original investment, cashing out A$730m from the airline, Bloomberg News reported earlier this month. Virgin Australia collapsed under a pile of debt in 2020, just weeks into the pandemic. It has transformed itself from a loss-making entity into a profitable carrier by cutting costs, simplifying its fleet and tapping a huge post-Covid rebound in travel demand.<br/>