AirAsia deputy group chief executive officer Farouk Kamal. — Reuters
KUALA LUMPUR: Budget airline AirAsia is nearing the conclusion of talks with potential strategic investors as the Malaysia-based airline approaches the end of its restructuring process, its deputy group chief executive officer (CEO) Farouk Kamal says.
The airline, whose parent company Capital A was classified as financially distressed by Malaysia’s stock exchange in 2022, is arranging a RM1bil equity injection alongside financing for its extensive order book of new planes, Kamal said, speaking on a panel at the Reuters NEXT Asia summit.
Capital A Group CEO Tan Sri Tony Fernandes said in March that the RM1bil private placement was “done”, but has not disclosed the identity of the investors.
He declined to comment on a Bloomberg report in March that Saudi Arabia’s sovereign wealth fund was set to invest US$100mil.
Kamal said AirAsia was coming to the final conclusion of talks with investors “not just from an equity injection perspective, but from an overall transactions perspective”, and hopes to make an announcement in “due course”.
AirAsia, one of Asia’s largest low-cost carriers and one of Airbus’ largest customers, has around 360 planes on order.
Last Friday, AirAsia signed a memorandum of understanding with Airbus to buy 50 long-range A321XLR planes with conversion rights for another 20 of the single-aisle jets.
Fernandes said last week he hoped to exit the financially distressed status soon, once restructuring efforts are complete.
As part of this, Capital A is in the process of selling its AirAsia aviation business to long-haul unit AirAsia X
to consolidate long- and short-haul operations under a single AirAsia brand. — Reuters
