AirAsia X Berhad (AAX) is seeking a relief from Bursa Malaysia Securities Berhad (Bursa Securities) to exempt the airline from the requirement to submit a Proposed Regularisation Plan. The airline is also seeking the upliftment of AAX from being classified as a Practice Note 17 (PN17) Affected Listed Issuer (PN17 Upliftment).
AAX claims to have undertaken a broad range of measures and corporate exercises to improve its financial position like set of restructuring exercises which incorporated a debt restructuring scheme, 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 primary focus on medium-haul flight operations, a rationalised 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.
Benyamin Ismail, chief executive, AAX 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.”
AAX has also 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 AAX has managed to turn around its financial position from 12 quarters of losses since the quarter ended June 30, 2019 to registering three consecutive quarters of net profit for the quarters ended September 30 2022, December 31, 2022 and March 31,2023. As at March 31, 2023, AAX has also recorded a positive shareholders’ equity.
“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,” Ismail added.