The CEO of AirAsia X (D7, Kuala Lumpur International) says the long-haul LCC will likely go hunting for fresh capital following it exiting Bursa Malaysia PN17 status. CEO Benyamin Ismail told The New Straits Times late last week that doing so was a top priority.
"The crucial aspect is to ensure that we actively seek capital now, which involves exploring opportunities with banks," he said. "Typically, banks are hesitant to engage with PN17 companies, but the new development creates new avenues for us to obtain loans."
As reported in ch-aviation, the Malaysian bourse lifted AirAsia X's PN17 status on November 21, 2023, after the airline successfully appealed an earlier decision by the stock exchange to maintain the status. PN17 notices are issued to listed companies the stock exchange considers financially distressed. The notice requires them to clean up their finances and formulate a regularisation plan within a stated timeframe or risk delisting.
While flagging the high fuel costs and a devalued ringgit, Ismail says the airline is now well-positioned to deal with lenders, with its finances and operations on the upswing. Aside from lifting the PN17 status, he is upbeat about the opportunities the Indian and Chinese markets present now the Malaysian government has decided to scrap visa requirements for their nationals.
"It is a massive thing for us," he said. This visa removal will catalyse increased air traffic and tourism into Malaysia. It benefits Malaysia and boosts our company." According to ch-aviation PRO airlines data, AirAsia X operates a fleet of seventeen A330-300s to 24 destinations in 13 countries.
AirAsia X did not respond to a request for comment.
