KUALA LUMPUR (April 12): AirAsia X Bhd (AAX) has once again applied to Bursa Securities for more time to submit its regularisation plan by extending its April 28 deadline to July 28.

The low cost carrier, however, did not reveal the reason that it could not manage to meet the extended dealine. The original deadline was in October last year. AAX was granted a six-month extension. 

The regularisation plan is crucial as it is supposed to lift not just AAX, but also its sister company Capital A Bhd — which operates short-haul, low-cost airline AirAsia — out of Practice Note 17 (PN17) status. It is widely expected that the regularisation plan involves Capital A injecting its aviation business into AAX via an issuance of shares.

Sources told The Edge that Capital A has called for an analyst briefing on April 27, a day prior to the current deadline, to give an update on the group’s development.

Capital A and AAX are working on their respective regularisation plans. Capital A's submission deadline is July 7.

Capital A fell into PN17 status on Jan 14, 2022, while AAX did so on Oct 27, 2021, after accumulating pandemic-led losses, which resulted in negative shareholders equity for both companies.

The recent Capital A share price rally has caused many to wonder about the price that AAX will have to pay to acquire AirAsia.

AAX closed 0.74% lower at RM1.35 on Wednesday, while Capital A settled 1.89% higher at 81 sen.