AirAsia shares lose 7% in Malaysia after jet disappears

December 29, 2014 | 10:45

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The firm slumped 12 per cent to 2.60 ringgit at the open but recovered slightly to sit at 2.72 ringgit, still down 7.48 per cent, by 10.15am Singapore time.

AirAsia Airbus A320 airplanes parked on a tarmac. (Photo: AFP/MANAN VATSYAYANA)

KUALA LUMPUR: Shares in AirAsia, Southeast Asia's biggest budget airline, lost more than seven per cent in morning trading on Monday (Dec 29) in Kuala Lumpur after one of its jets disappeared with 162 people on board.

The firm slumped 12 per cent to 2.60 ringgit at the open but recovered slightly to sit at 2.72 ringgit, still down 7.48 per cent, by 10.15am. The Airbus jet disappeared en route from Surabaya in Indonesia's east Java to Singapore after the crew requested a change of flight plan due to stormy weather.

However, Shukor Yusof, founder of aviation research firm Endau Analystics told AFP investors and creditors will remain firmly behind AirAsia and its CEO Tony Fernandes, who transformed a floundering carrier into Asia's most successful budget airline. "The market reaction is quite natural. I am not surprised," he told AFP, adding: "I think investors confidence will return quickly since the airline has a solid business model."

Indonesia resumed a sea and aerial search at dawn Monday for the Airbus A320-200 plane that went missing in the Java Sea Sunday morning. Five aircraft will be sent to search for the plane, including two C-130 military transport aircraft and a Boeing 737, Indonesian air force spokesman Hadi Cahyanto told AFP.

AirAsia plane likely 'at bottom of sea': Indonesia search chief

The AirAsia plane which went missing is likely at the bottom of the sea, Indonesia's National Search and Rescue Agency chief said.

Missing aircraft’s pilot asks to change route over bad weather before losing contact

The pilot of the missing Air Asia aircraft with 162 people on board on Sunday morning requested a deviation due to weather before losing contact with the Indonesian Air Traffic Control (ATC), according to a statement of the Malaysia-based budget carrier which has just been posted on its official Facebook’s page.

VN offers assistance in search efforts for missing Air Asia plane

Deputy PM, FM Pham Binh Minh has deeply shared worries of families and relatives of passengers on board flight QZ 8501, during his phone call to Indonesian FM Retno L.P. Marsudi this afternoon.

AFP

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