AirAsia X seeks fresh capital post-PN17, sees promising 2024
Published on: Saturday, December 02, 2023
By: Bernama
With the growing demand for its services, AirAsia CEO Benyamin Ismail said the airline is heading towards a high 80% capacity. (AirAsia pic)
DUBAI: AirAsia X Bhd is actively seeking new capital opportunities after Bursa Malaysia Securities Bhd lifted the airline’s Practice Note 17 (PN17) status effective Nov 22.
AirAsia X (AAX) chief executive officer Benyamin Ismail said this is a top priority as it is essential for the airline to maintain profitability.
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“The crucial aspect is to ensure that we actively seek capital now, which involves exploring opportunities with banks,” he told Bernama on the sidelines after the World Travel Awards (WTA) Grand Final 2023 on Friday night.
“Typically, banks are hesitant to engage with PN17 companies, but the new development creates new avenues for us to obtain loans,” he said.
Benyamin said they restructured the company during the Covid-19 pandemic and this is a positive aspect. Additionally, the company’s financials are strong and the uplifting of the PN17 status is another upside for the company.
“For this year, we’ve exceeded expectations. However, bear in mind that fuel prices are very high, and the ringgit is weak against the US dollar as we entered the final quarter of 2023.
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“Anyway, the demand for our service is still fairly strong. As we head into December, we’re probably going towards a high 80% capacity,” he said.
As for 2024, Benyamin is excited about the future and is looking forward to the impact of the government scrapping visa requirements for Indian and Chinese nationals.
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“It is a massive thing for us. China’s slowdown post-pandemic has impacted us and this visa removal will catalyse increased air traffic and tourism into Malaysia. It benefits Malaysia and boosts our company,” he added.
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