AirAsia X Secures RM500 Million Funding, Prepares for Relaunch

Background

AirAsia X, the long-haul affiliate of AirAsia Group, has secured RM500 million (approximately USD119 million) in funding to support its relaunch plans. This funding will enable the airline to resume operations after a prolonged suspension due to the COVID-19 pandemic.

Funding Details

The funding was raised through a private placement exercise with existing shareholders and new investors. The company issued 1.06 billion new shares at a price of RM0.47 per share. The successful completion of the fundraising marks a significant milestone in AirAsia X's recovery plans.

Relaunch Plans

AirAsia X intends to utilize the funding to resume operations and expand its route network. The airline plans to gradually increase its flight frequency and destinations over the coming months. Initial plans include:

Resuming flights to London, Australia, and South Korea
Exploring new destinations in China and Japan

Fleet Modernization

AirAsia X is also investing in fleet modernization as part of its relaunch strategy. The airline will be acquiring new wide-body aircraft, including the Airbus A330-900neo, to enhance its efficiency and passenger experience.

Financial Restructuring

Prior to the fundraising, AirAsia X had undergone a financial restructuring process to reduce its debt burden and improve its financial health. The airline received approval from its creditors for a debt restructuring plan in December 2021, which paved the way for the recent funding.

Industry Outlook

The aviation industry is gradually recovering from the impacts of the COVID-19 pandemic. Air travel demand is expected to increase significantly in the coming years, particularly in the Asia-Pacific region. AirAsia X is well-positioned to capitalize on this growing demand.

Management Statement

Benyamin Ismail, CEO of AirAsia X, said: "This fundraising exercise is a testament to the confidence that our shareholders and investors have in AirAsia X. It marks a major step forward in our recovery process and paves the way for us to relaunch and rebuild a stronger airline."

Key Points

AirAsia X has secured RM500 million in funding to support its relaunch.
The funding will be used to resume operations, expand the route network, and modernize the fleet.
AirAsia X has undergone a financial restructuring to improve its financial health.
The aviation industry is expected to recover in the coming years, creating opportunities for AirAsia X.
AirAsia X aims to resume flights and explore new destinations as part of its relaunch plans.