Tan Sri Tony Fernandes —LOW BOON TAT/The Star.
SEPANG: Asia Digital Engineering (ADE), the maintenance, repair and overhaul (MRO) subsidiary of Capital A Bhd
, is poised to be Capital A's first business unit to be listed on Bursa Malaysia, said Capital A chief executive officer Tan Sri Tony Fernandes.
He said ADE, a wholly-owned subsidiary of Capital A, has the potential to rival the value of the group’s low-cost airlines AirAsia Bhd and the "value that is being created here is huge.”
He said the plans to go for listing will be based on several factors, including the company's capital growth.
Furthermore, he said the company is still in the midst of exiting its Practice Note 17 (PN17) status.
"All shareholders want to go public. So, this will be for the board to decide when to go for listing. We are very cash flow positive and able to raise debt to build this hangar,” Fernandes said after the grand opening of the 14-line ADE MRO hangar at the Kuala Lumpur International Airport (KLIA) today.
"I was asked a question at the investors and analysts’ briefing today within Capital A companies; which one do you think would be listed first? This is just my opinion, but probably ADE would be the first listing. But it's premature to talk about listing at the moment,” he added.
Besides that, he said ADE is expected to add another 14-line hangar to expand its business amid the growing demand for MRO services. At the moment, he said ADE is in discussions with Malaysia Airports Holdings Bhd (MAHB) to secure land for 10 lines out of the 14 lines.
"They have given us five acres of land and we are discussing on an additional 20 acres. We are also looking throughout ASEAN and outside of Klang Valley for this hangar facility,” he said.
Covering an area of more than 380,000 square feet, the new 14-line hangar launched today spans 20.25 acres within the KLIA Aeronautical Support Zone 1 (ASZ 1) under Malaysia Airports’ KLIA Aeropolis development.
The hangar features workshops, including a composite workshop; sheet metal and machine workshop; upholstery workshop; cabin interior repair workshop; oven and boiler workshop; 3D printing lab for aircraft livery as well as a digital product development centre.
ADE CEO Mahesh Kumar said the landmark facility not only enhances the company’s capabilities but also creates at least 500 new jobs in Malaysia, attracting local talent and foreign investment.
He said ADE is also extending its expertise and best practices in airline engineering to attract more third-party airlines. "Services include component support, line maintenance, and base maintenance for various aircraft models, such as the Airbus A320 and A330 families, as well as the Boeing 737 family, with plans to expand capacity to service other aircraft types in the future,” he added.
During the opening, the Malaysia Book of Records recognised the new facility with three prestigious national records: Longest Single Span Pre-Engineered Building System Rafter, Longest Locally Designed Single Span Truss Frame System, and Longest Vertical Hangar Door (Megadoor).
On carbon levy charges, Fernandes said the low cost carrier will start implementation from January next year onward as AirAsia is looking to get approval from other ASEAN governments too.
"We don't want to just do it in Malaysia. We have got many airlines so we are trying to get all the approvals from ASEAN but we are not going to make it optional because if you put optional no one is going to do it right,” he added.
On March 4, 2024, the Transport Ministry said that airlines could start charging carbon levies once the amendments to the Malaysian Aviation Commission (Code of Conduct) Regulations 2018 have been finalised by the Malaysian Aviation Commission. - Bernama
