AirAsia X is seeking an investment of $10.8 million which will primarily be used for the “reactivation and maintenance” of the company’s fleet.
$10.8 million is being sought by AirAsia X, most of which would be spent for the "reactivation and maintenance" of the company's fleet.
With the help of institutional investors, the carrier will be able to put some of its unused Airbus A330s back into service.
According to the airline the funding would “serve as an interim fundraising measure to bolster its short-term working capital requirements as the company continues to recover and grow its operations in this post-pandemic era.”
AirAsia X, which currently flies to 16 medium-distance locations, made the announcement on May 23, 2023.
The Malaysian airline, which has been working to stabilize and strengthen its financial position since the beginning of 2022, has turned around its financial performance, going from generating losses to recording two straight quarters of profits for the fiscal years that ended on September 30, 2022, and December 31, 2022.
As AirAsia X continues to assess its operational and financial performance as well as the sustainability of its PN17 regularization plan, the planned placement of shares would be the company's first equity fundraising effort since 2015.
“Since the reopening of the regional borders last year, AirAsia X continues to grow, and we have been ramping up our operations to cater to the demand for international air travel across the regions. As of May 2023, AirAsia X has 17 aircraft within its fleet, with 11 activated and operational and we aim to activate more aircraft by the end of the year,” Benyamin Ismail, CEO of AirAsia X said.
Ismail added: ““We are pleased to have embarked on this new era post-COVID-19, in which we witness the return of confidence in the aviation industry, which has shown clear evidence of a rebound following three long years of stall.”
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