Capital A said the move will pave the way for seamless transition of its fleet.
PETALING JAYA: AirAsia X Bhd
(AAX), the long-haul airline of Capital A Bhd, has entered into a one-year lease agreement of an A330-300 aircraft with sister company Asia Aviation Capital Ltd (AACL), in a contract valued at RM30.5mil.
Capital A revealed the rationale behind the deal is to streamline the fleet of planes for Malaysia AirAsia to narrow-body aircraft only, as the additional aircraft is of the same cabin configuration as AAX’s existing fleet, allowing a seamless transition into the fleet.
In a filing with Bursa Malaysia, the group reported its directors are of the view that the transaction is in the best interest of the company, and the agreement is entered under fair, reasonable, normal arm’s length commercial terms and is not detrimental to the interest of its minority shareholders.
AAX was incorporated in Malaysia on May 19, 2006, and provides mid-range to long haul air transportation services.
It has a total issued and paid-up share capital of RM51.5mil comprising 447.1 million ordinary shares.
Earlier, Capital A announced it is in the “last stretch” of finalising its Practice Note 17 or PN17 regularisation plan and aims to make a full submission to Bursa Malaysia in “the near future”.
This was as Bursa Malaysia had granted the company its third extension of time – until Dec 31, 2023 – to submit its regularisation plan.
The group had managed to make a turnaround for the nine months ended Sept 30, 2023 – as it posted a net profit of RM996.6mil – a reversal from the RM2.7bil loss it incurred for the corresponding period a year ago.
Capital A has embarked on a strategy to revamp its airlines by focusing on cost control and maximising revenue, with the goal of bringing 187 aircraft back into service by year-end, which is 80% of pre-lockdown levels.
“We aim to leverage on the high travel season and the newly established visa-free travel between China and Malaysia which started on Dec 1, 2023,” it said.
