Malaysia 's AirAsia says it is in talks to secure funding of more than US$230 million
KUALA LUMPUR: Malaysia n budget carrier AirAsia on Thursday (Jul 9) said it was in talks to secure financing of more than 1 billion ringgit (US$235 ...
BookmarkKUALA LUMPUR: Malaysian budget carrier AirAsia on Thursday (Jul 9) said it was in talks to secure financing of more than 1 billion ringgit (US$235 million), a day after its auditor cast doubt on its ability to continue as a going concern due to the coronavirus-led travel slump.
“We have been presented with proposals in various forms of capital raising, be it debt or equity, and are in ongoing discussions with numerous parties, including investment banks, lenders, as well as interested investors in seeking a favourable outcome for the group,” the airline said in a statement.
AdvertisementREAD: AirAsia's shares plunge after auditor notes 'going concern' doubtsSome financial institutions have indicated that they would support its funding request of more than 1 billion ringgit, it said.Of the 1 billion ringgit in funding, AirAsia’s chief executive officer Tony Fernandes said a certain portion would be eligible for the government guarantee loan under the Danajamin PRIHATIN Guarantee scheme in Malaysia. headtopics.com
The carrier’s Philippine and Indonesia entities are currently in various stages of applications for a bank loan, he said.AdvertisementAdvertisementIn the Philippines, AirAsia has applied for the government-guaranteed loan under the Philippine Economic Stimulus Act (PESA), with an expected positive outcome.
Meanwhile, in its 2019 Annual Audited Account statement, the group has also indicated that it planned to raise capital of up to RM1.4 billion as and when required to strengthen its equity base and liquidity and expect successful implementation on these capital-raising plans.
FILE PHOTO: AirAsia boss Tony Fernandes. (AFP/MANAN VATSYAYANA)Commenting on capital management, internally said Fernandes, the group has embarked on headcount rationalisation for leaner operations, given the current demand for air travel and expectations on recovery, with internal cost-cutting efforts to include a group-wide temporary salary reduction of between 15 per cent and 75 per cent.
“We have received deferrals from our supportive lessors and are now working on further extensions. We have also restructured 70 per cent of our fuel hedging contracts and are continuously negotiating with our supportive counterparties for the remaining exposure.” headtopics.com
“All in all, we expect at least 50 per cent reduction in our cash expenses in 2020,” he said.While the first half of the year has been extremely challenging, Fernandes said countries around the world have resumed domestic travel in recent weeks and are gradually reopening international borders.
In this regard he said, the formation and discussion of “travel bubbles” and “green lanes” with key economic partners with a low infection rate and proven pandemic curbing systems, is a step in the right direction.AirAsia has also resumed its domestic operations in markets such as Malaysia, Thailand, Indonesia, India and the Philippines on a staggered yet steady basis since late May.
“On July 7, we registered our highest post-hibernation sale with 75,000 seats sold in a single day, reflecting pent-up demand and signalling green shoots of recovery. We also sold over 200,000 AirAsia Unlimited Passes since its recent launch for domestic Malaysia, domestic Thailand and AirAsia X.
“Positive trends in our flight bookings and load factors are additional signals of a better second half of the year,” he said.AirAsia planes sit on the tarmac at Kuala Lumpur International Airport, Malaysia Aug 28, 2016. (Photo: Reuters/Edgar Su/File Photo) headtopics.com
In June, the group-wide load factor was 60 per cent with AirAsia Malaysia’s load factor reaching 65 per cent, and it expects the load factor to reach 70 per cent for July.On the outlook, Fernandes remained confident in the growth potential of the ASEAN region, in line with ASEAN-5’s gross domestic product growth forecast of 6.2 per cent in 2021, which is one of the highest growth rates in the world.
“We are confident that AirAsia will not only benefit from this growth upturn but also contribute to the region’s recovery given the significant role that air connectivity plays in ASEAN’s trade and investment landscape,” he added. Read more: CNA »
World's deepest pool for diving opens in Dubai
DUBAI - The world's deepest swimming pool for underwater diving has opened in Dubai, where people can descend 60 metres (197 ft) to a sunken city-themed landscape and play arcade games.
Malaysia's AirAsia in talks to secure funding of over $230 million Malaysia n budget carrier AirAsia Group Bhd on Thursday said it was in talks to raise more than 1 billion ringgit ($234.52 million) in funds, a day after its auditor cast doubt on its ability to continue as a going concern. AirAsia, like other airlines, has been slammed by the coronavirus pandemic that
Malaysia's AirAsia in talks to secure funding of over RM1b[KUALA LUMPUR] Malaysia n budget carrier AirAsia Group on Thursday said it was in talks to secure financing of over RM1 billion (S$326.2 million), a day after its auditor cast doubt on its ability to continue as a going concern due to the coronavirus-led travel slump. Read more at The Business Times.
Amazon invests US$308 million in fresh funds into India unitBENGALURU: Amazon.com has invested 23.10 billion rupees (US$308.02 million) in Amazon Seller Services, an Indian unit, strengthening the business ...
Israeli cybersecurity startup XM Cyber raises US$17 millionTEL AVIV: Israeli cyberscecurity startup XM Cyber said on Thursday it raised US$17 million in funding from Macquarie Capital, Nasdaq Ventures, Our ...
Tata Sons in talks to buy out AirAsia India stake at steep discount: ReportBENGALURU (REUTERS) - Indian conglomerate Tata Sons is in talks to buy out AirAsia Group Bhd's stake in their airline joint venture in India at a steep discount, the Business Standard newspaper reported on Thursday (July 9), citing banking sources.. Read more at straitstimes.com.
AirAsia in trading halt after auditor notes 'going concern' doubtsShares in Malaysia 's AirAsia Group Bhd were halted on Wednesday after its auditor said there were material uncertainties that cast doubt on the ...