AirAsia X (D7, Kuala Lumpur International) has run out of time to implement the remaining corporate exercises that were announced in May 2021 and involved raising up to MYR116 million ringgits (USD24.5 million) in a one-for-one rights offering alongside a further special issue to raise MYR50 million (USD10.6 million). In an October 26 Bursa Malaysia filing, , the medium-haul low-cost-carrier based in Malaysia said that the remaining corporate exercises will not be exercised.
Earlier this year, the airline said it had fixed the one-for-one issue price at MYR0.28 (USD0.059) per share and would use a special purpose vehicle (SPV) called Garynma Investments Pte Ltd to facilitate the special issue which was also similarly priced. But as recently as mid-August, AirAsia X admitted it still hadn't secured underwriters and the SPV was yet to sign the share subscription agreement.
Meanwhile, the airline has also advised Bursa Malaysia that it is working to complete a "comprehensive proposed regularisation plan" per its Practice Note 17 (PN17) requirements. The stock exchange-issued PN17 compels listed companies in financial distress to submit a plan to normalise their financial status within a certain time or risk being delisted. On October 12, via AmInvestment Bank, AirAsia X applied to Bursa Malaysia for a six-month extension to April 28, 2023, to submit their plan.
The airline entered into PN17 status in October 2021 after its auditors Ernst & Young expressed a disclaimer of opinion regarding its financial statements. In the three months to June 30, 2022, AirAsia X posted a net loss of MYR652.52 million (USD137.7 million), an improved on the USD5.9 billion loss it booked up in the same 2021 quarter. Recently, the airline has amped up its flying (and revenues) since. According to the ch-aviation PRO airlines module, AirAsia X is now flying to 15 destinations in nine countries with five of its seven A330-300s active.
Separately, in an October 31 Bursa Malaysia filing, AirAsia X confirmed that Tony Fernandes will step down from his role as acting group chief executive of AirAsia X. The filing says the change comes about as the airline prepares for its next phase of growth.
"I went in with a clear mandate to restart AirAsia X and bring it back to life from hibernation," said Fernandes. "I am happy that this has been accomplished. My job was to bring the airline back to profitability and growth. We have improved the cost structure, and created the cargo business, which has contributed about 20% to the airline's revenue and will continue to play a vital role in the recovery of AirAsia X."
