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AirAsia X applies to exit PN17 status

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AirAsia X Berhad asks to be excluded from having to submit a Proposed Regularisation Plan.

SEPANG, MALAYSIA – AirAsia X Berhad is seeking relief from Bursa Malaysia Securities Berhad to exempt the airline from the requirement to submit a Proposed Regularisation Plan as required under paragraph 8.04(3)(A) of the Main Market Listing Requirements of Bursa Securities. Subsequently, the airline is also seeking the upliftment of AAX from being classified as a practice note 17 affected listed issuer.

From the onset of the company triggering suspended criteria under PN17 on 30 July 2020, AAX has undertaken a broad range of measures and corporate exercises to improve its financial position. The first of which was a set of restructuring exercises that incorporated a debt restructuring scheme, a share capital reduction of 99.9% of the issued share capital of AAX, share consolidation, and a revision of its business plan.

The revised business plan incorporated key elements including a leaner and more viable cost structure with a primary focus on medium-haul flight operations, a rationalized network plan which saw the termination of unprofitable routes and recalibration of focus on routes with proven loads and yield performance in AAX’s core markets.

AAX has also during this time deferred all investments in new and immature routes, apart from restructuring all of its contracts and arrangements in relation to its fleet and overall operations to better align to its future size and requirements. In its right-sizing strategy, AAX had also undertaken plans for manpower consolidation and optimisation, ensuring that its workforce is strictly aligned with its operational requirements.

With the continued efforts set forth above, AAX has managed to turn around its financial position from 12 quarters of losses since the quarter ended 30 June 2019 to registering three consecutive quarters of net profit for the quarters ended 30 September 2022, 31 December 2022 and 31 March 2023. As of 31 March 2023, AAX has also recorded a positive shareholders’ equity.

Based on its improved operating and financial performances, AAX no longer triggers any of the criteria prescribed under Paragraph 2.1 of PN17, particularly as AAX’s shareholders’ equity has turned positive; and AAX’s external auditors have expressed a clean opinion of AAX’s financial position.

AAX CEO Benyamin Ismail said: “The restructuring exercises that we have undertaken in the past couple of years allowed us to transform and reset AAX towards a more sound and viable financial position. Since our emergence from hibernation back in April 2022, we are pleased to share that AAX’s operational and financial performances have been improving in line with the increasing demand that we observe across all our core markets. Improved demand for travel has been evident in the last three quarters when we recorded passenger load factors of 73%, 79% and 80% for the periods ended 30 September 2022, 31 December 2022 and 31 March 2023 respectively.

“We have managed to maximise the recovery of all of our revenue segments even though some of our fleet remain on ground. As of 31 March 2023, AAX’s cash position is healthy at RM192.37 million, without any outstanding debts, and has sufficient working capital for 12 months. In addition, with the recent completion of placement of an aggregate of 32,258,066 new AAX Shares to AHAM Asset Management Berhad, AIIMAN Asset Management Sdn Bhd and Lavin Group Sdn Bhd at an issue price of RM1.55 per AAX Share, we have raised net proceeds of approximately RM50.00 million, strengthening AAX’s equity position and ultimately granting AAX the platform to gradually re-establish a firm equity base. This is a strong testament that confidence in AAX is growing and future prospects are strong.”

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Tatiana is the news co-ordinator for TravelDailyNews Media Network (traveldailynews.gr, traveldailynews.com and traveldailynews.asia). Her role includes to monitor the hundrends of news sources of TravelDailyNews Media Network and skim the most important according to our strategy. She holds a Bachelor degree in Communication & Mass Media from Panteion University of Political & Social Studies of Athens and she has been editor and editor-in-chief in various economic magazines and newspapers.

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