Sunday 19 May 2024
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KUALA LUMPUR (Nov 2): AirAsia X Bhd (AAX) has submitted an appeal against Bursa Securities’ recent decision to reject the medium- and long-haul budget carrier's application to exit Practice Note 17 (PN17) status for financially distressed companies.

In a statement on Thursday, the airline said its foremost short-term goal is to emerge from the PN17 status as smoothly and swiftly as possible, to boost the post-pandemic upward trajectory for future sustainable and profitable growth.

It also said that the recent decision by the stock exchange regulator had served as a catalyst for AAX to double down on its efforts to obtain the relevant approvals, and move forward with the strategic business plan for a long-term viable future.

“As we celebrate close to two decades of soaring through the skies, we are confident about the resubmission of the upliftment application, which is a pivotal step that will not only secure our future, but also open new horizons.

“Alongside significant improvements across all key metrics as outlined in our recent financial and operational performance announcements, we are working closely with Bursa Securities to close this pandemic-induced chapter as soon as possible," AAX chief executive officer Benyamin Ismail.

"With the uplifting of the PN17 status, we will continue to chart our positive growth trajectory, including securing additional financial support to spread our wings further than ever before, and continue to do our part for the travel industry within this region. 

“As we celebrate our birthday month, we are hopeful of securing the required approvals as soon as possible, so the company can focus on securing additional capital through ventures with potential investors moving forward,” he added.

AAX highlighted that the PN17 status does not impact its services, and the airline remains committed to consistent delivery of exceptional service and value to its customers as the approval process progresses.

On Oct 18, Bursa Securities had rejected AAX's application for relief from having to submit and implement a plan to regularise its condition and upliftment from the PN17 status, and instead granted the airline an extension until Jan 17, 2024 to submit its regularisation plan to the regulatory authorities.

Shares in AAX closed three sen or 1.56% higher at RM1.95 on Thursday, giving the airline a market capitalisation of RM871.79 million. Its share price has risen 225% so far this year.

Edited ByLam Jian Wyn
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