AAX Lease Plane to Capital A For RM2.181 Million

Capital A announced that AirAsia Berhad (“AAB”), a wholly-owned subsidiary of the Company, has on 13 June 2022, entered into a Wet Lease Agreement with AirAsia X Berhad (“AAX”) to govern the terms and conditions of leasing one (1) Airbus A330-343aircraft with the complete crew, maintenance and insurance by AAX to AAB on a wet-lease basis in accordance with the terms and conditions of the agreement.

In a Bursa filing, it said that the agreement will be effective on the date of signing of the Agreement and will expire on 31 July 2022, unless terminated earlier by either AAB or AAX, for any reasons whatsoever, by providing thirty (30) days prior written notice.

In the event of a material breach, either AAB or AAX can terminate the agreement by providing an immediate notice to remedy to the non-defaulting Party. If the defaulting Party doesn’t remedy within thirty (30) days, then the non-defaulting Party may terminate the Agreement without further notification.

AAB will lease one (1) Airbus A330-343 aircraft from AAX in accordance with the terms and conditions stipulated under the Agreement and the Terms and Conditions of Carriage.  AAB will pay AAX a total estimated consideration of Ringgit Malaysia Two Million One Hundred Eighty-One Thousand Three Hundred Seventy-Five (RM2,181,375), exclusive of the 6% Sales and Service Tax, within thirty (30) days from the receipt of the invoice from AAX.

The total estimated consideration due to AAX comprises actual flown and planned wet lease of the aircraft on an hourly billing basis for the period of the agreement. The final total payment will vary based on the hours eventually flown.

In the event of any cancellation, re-route, and/or re-schedule of the flights for commercial reasons, AAB will give forty-eight (48) hours’ prior notice to AAX and if such changes lead to additional direct costs for AAX, then AAB will compensate AAX such costs in full.

Capital A also announced that all the resolutions were passed by the shareholders at the annual general meeting (AGM). Capital A CEO Tony Fernandes said: “The clean audit report is a key step forward to expedite removal of PN17 status which we are confident of exiting in the coming months. The PN17 regularisation plans are on track, which the management team is developing, taking into consideration multiple solutions without proposals for capital dilution or equity raising. We are confident of meeting the deadline to submit the plan to Bursa Malaysia by early January 2023.”

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