KUALA LUMPUR (Feb 24): Budget carrier Capital A Bhd (KL:CAPITALA) said it is making significant progress on the proposed RM6.8 billion disposal of its short-haul aviation business to medium-haul affiliate AirAsia X Bhd (KL:AAX), with all necessary consents expected to be received by the end of February.

The group, which has been addressing queries from Bursa Malaysia regarding its Practice Note 17 status, is now awaiting a court date for confirmation on the proposed capital reduction pursuant to the disposal, it added.

In a filing with Bursa on Monday, Capital A said it will be issuing internal targets moving forward, as part of its commitment to ensure transparency, accountability, and investor confidence. The first internal targets will be issued, alongside its financial results for the fourth quarter ended Dec 31, 2024 (4QFY2024), on Wednesday (Feb 26).

"Capital A’s internal targets are solely management aspirations and do not constitute financial estimates, forecasts, or projections under the Securities Commission Malaysia's future financial information standards. This initiative, aligned with Bursa’s regulations, aims to provide shareholders and the investment community with a clearer understanding of the group’s financial outlook."

Capital A said the group seeks to build investor confidence through consistent and reliable financial disclosures while ensuring that all stakeholders have the necessary information for a fair and reasonable valuation of the group.

Additionally, the sharing of internal targets will drive greater responsibility and accountability across all departments within the group, requiring business leaders to prepare accurate budgets, set realistic forecasts, and meet financial targets. This move will also help financial analysts and investors to better assess the group’s business prospects, operating conditions, and anticipated profitability, offering improved visibility into its long-term strategy, it noted.

Capital A chief executive officer Tan Sri Tony Fernandes said: “Moving forward, we will issue internal targets alongside our quarterly financial results, outlining key assumptions and their potential impact on previously stated targets. Additionally, we will provide insights into external market factors beyond our control that may influence our financial performance, ensuring that the market remains well-informed about our evolving business landscape.”

At the time of writing, Capital A shares were trading 1.5 sen or 1.69% lower at 87 sen, giving it a market capitalisation of RM3.77 billion. AAX shares were also down one sen or 0.57% at RM1.74, valuing the group at RM777.91 million.