KUALA LUMPUR, 6 MAY 2025: Capital A Berhad is confident in completing its Proposed Regularisation and Restructuring Plan by June 2025, citing continued progress across key regulatory, financial, and operational milestones.
The MYR1 billion private placement for AirAsia X is close to completion, with a sovereign wealth fund as the lead investor currently finalising its internal clearance. A letter from another investor confirming interest in participating in the private placement has also been received.
The decision letter from the Securities and Exchange Commission (SEC), Thailand, is expected to be received by the first week of May.
Most lenders’ approvals have been secured, with the remaining two expected soon.
The aviation business disposal, a key condition of the restructuring, is moving towards a conclusion.
The Extraordinary General Meetings to obtain approval from shareholders and RCUIDS holders for the Proposed Regularisation Plan will be held on 7 May 2025.
The financial audit for the Financial Year, which ended December 2024, has been completed, while the first quarter of the financial year 2025 delivered a strong performance, driven by robust demand, weakening fuel prices and strengthening key ASEAN member country currencies.
The Aviation Group targets to reactivate all its 250 aircraft by July, marking a major recovery milestone.
The group remains steadfast and positive on its outlook despite the inclusion of a Material Uncertainty Related to Going Concern (MUGC) paragraph in the company’s latest audited consolidated financial statements – which the group views as a procedural outcome tied to timing and not a reflection of deterioration in its business fundamentals.
Capital A CEO Tony Fernandes said: “I’m very proud that after five challenging years of Covid-19, we’ve once again received a true and fair view of our accounts from Ernst & Young. While EY draws attention to the timing of our restructuring — particularly the MYR1 billion placement for AirAsia X — this reflects the scale and significance of the plan, not any weakness in our fundamentals.”
He added, “We want to assure our shareholders that the inclusion of the MUGC paragraph is an audit requirement when certain milestones remain pending at the date of issuance of audit report — even when they are well on track. It does not reflect any concern about the strength of our business. Meaningful progress is being made across all fronts, and we remain confident in completing all components of our restructuring plan successfully.”
Group-wide momentum continues
- AirAsia X, Capital A’s related party, has exited PN17 and is now profitable.
- Capital A’s non-aviation businesses posted a 29.7% increase in revenue year-on-year, returning to profitability in FY2024.
- Favourable conditions and strategic partnerships are also supporting growth:
- Engine provider GE partnership is progressing well; all 16 remaining aircraft are expected to be operational by July.
- A new partnership with Malaysia Airports under its new ownership structure is expected to enhance margins.
- Macroeconomic tailwinds are aiding recovery, including lower oil prices and favourable currency movements.
- High load factors above pre-pandemic levels and high-yield ancillary income contribute to a stronger margin outlook.
- The MUGC paragraph reflects standard audit caution amid pending restructuring steps and does not indicate operational weakness.
- The group remains committed to updating stakeholders as it advances toward exiting PN17 and charting a new chapter of sustainable growth.
