PETALING JAYA: Capital A Bhd
has made significant strides in its corporate restructuring exercise, stating the proposed disposal of its aviation business has been submitted to Bursa Malaysia and will be tabled for shareholders approval.
In a filing with the local bourse, the airline operator said the proposed disposal of its aviation business to exit PN17 status upon obtaining the necessary regulatory approvals.
“Upon successful completion of both initiatives, shareholders are poised to unlock the full potential of the group's aviation and non-aviation businesses. Driven by these positive developments, the board remains optimistic about the company’s prospects for 2024 and is committed to delivering a robust financial performance,” it noted.
Additionally, the airline operator said it will look at reactivating 15 aircraft from the 22 non-active aircraft as well as receiving eight new aircraft to invest in network growth across the region.
It said with that capacity added, it will be in a better position to negotiate for favourable airport and tourism incentives like it did before Covid-19 hit.
“This will facilitate its plan to launch 21 new routes in the next quarter. Travel demand is expected to remain robust supported by travel peak periods in China, Korea and India, and also year-end festivities,” it noted.
It added its immediate focus will be to optimise fares and yield while continuing to monitor the global fuel price given the potential escalation of the Middle East conflict.
Currently, the airline’s ancillary segment has continued to exhibit strong performance with revenue per pax anticipated to maintain above RM50 in the second half of the year.
On its corporate disposal, the operator will continue working closely with long-haul counterparts to leverage on operational and commercial synergies.
“The recent signing of a US$443mil revenue bond where AirAsia raised a US$200mil new fund is a stepstone for the group to strengthen its financial position and to accelerate growth,” it said.
For its aviation services, the engineering arm ADE is expanding starting with the launch of its line maintenance services in Cambodia, the Philippines and Indonesia.
Meanwhile, for the second quarter ended June 30, 2024, it registered a net loss of RM454.18mil on the back of higher foreign exchange losses and aircraft depreciation charges.
Its revenue however increased 54% year-on-year to RM4.86bil attributed to the strong recovery in demand from both domestic and international travel.
It said that 20% of its fleet from the 165 operating aircrafts was not in operation during the quarter.
In the second quarter, 87% of the group’s revenue was attributed to the aviation segment while the logistics, digital and other businesses contributed the remaining 13% to the group.
