AirAsia X Berhad is seeking relief from Bursa Malaysia Securities Berhad to exit from the PN17 status which has kept the airline in a precarious position since it was listed.
The airline has submitted to be exempted from the requirement to submit a Proposed Regularisation Plan and is also seeking the upliftment from being classified as a Practice Note 17 Affected Listed Issuer.
From the onset of triggering suspended criteria under PN17 from 30 July 2020, AAX said it has undertaken a broad range of measures and corporate exercises to improve its financial position. The first of these was a set of restructuring exercises that incorporated a debt restructuring scheme, a 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.
AAX has also during this time 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.
It has managed to turn around its financial position from 12 quarters of losses since the quarter ended 30 June 2019 to registering three consecutive quarters of net profit for the quarters ended 30 September 2022, 31 December 2022 and 31 March 2023. As at 31 March 2023, AAX has also recorded a positive shareholders’ equity.
Based on its improved operating and financial performances, AAX no longer triggers any of the criterias prescribed under Paragraph 2.1 of PN17, particularly as AAX’s shareholders’ equity has turned positive; and AAX’s external auditors have expressed a clean opinion of AAX’s financial position.
