AirAsia owner Capital A to publish internal targets for transparency

Capital A Berhad, owner of AirAsia, will publish internal business targets with quarterly results to improve investor confidence. The company, which is classified as financially distressed, is exiting this status and consolidating operations by selling its aviation business to AirAsia X Bhd. Significant sales progress has been made, with completion expected by the end of February.

Malaysia's Capital A Berhad, owner of budget airline AirAsia, said on Monday that it will publish internal business targets alongside quarterly results to give investors a better picture of the company's financial outlook. Capital A was hard-hot by pandemic travel restrictions and was classified by Malaysia's stock exchange as PN17 or financially distressed. It is seeking to exit PN17 status. It also sells its AirAsia aviation business to long-haul unit AirAsia X Bhd, which it announced a year ago to consolidate extended and short-haul operations under a single AirAsia brand.

Capital A companies want to build investor confidence through consistent and reliable financial disclosure while ensuring all stakeholders have the necessary information for a fair and reasonable company valuation," it said. Publication will begin on Wednesday, the investment holding company said. "With most of the uncertainties that previously impacted our business now behind us, the timing for this move is right," Group Chief Executive Tony Fernandes said in a statement.

Capital A added that it had made significant progress on the AirAsia X Bhd sale, saying all necessary consents are expected by the end of February.

It extended the disposal deadline by two months to March 24 in January. AirAsia was founded in 2001 with two aircraft and has become one of Asia's largest budget airline operators. Capital A and AirAsia X were given PN17 status, under which they could be delisted from the stock exchange if they failed to stabilize their finances within a set time frame. Air Asia X was removed from the classification in November 2023.

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AirAsia Owner Capital A To Publish Internal Targets For Transparency

News Source : Economic Times