The board of directors of AirAsia Group Berhad has said that AirAsia Berhad, a wholly-owned subsidiary of the company, has entered into a profit-sharing agreement with AirAsia X Berhad.
The deal is in connection with the transfer two of its existing slots which are in the equivalent of 14 times weekly of its Kuala Lumpur - Singapore route.
Pursuant to the agreement, AAX will share 50% of the net operating profit of the route with AAB on a monthly basis throughout the term of the agreement.
The Transaction will provide an opportunity for AAB to heighten the fly-thru market which has remained stagnant since 2017 and benefit from the additional capacity which doubles up to AAB’s current capacity.
The Transaction will not have any material financial impact in the current financial year nor will it have any effect on the issued and paid-up share capital or substantial shareholders’ shareholding of AAGB, the group said.
It was also revealed the transaction is also not expected to have any material effect on the net assets per share, earnings per share and gearing of AAGB for the financial year ending 31 December 2019.