AirAsia Denies Rumours of Privatisation

8th Oct 2015

Rumours that the biggest carrier in Malaysia could soon be privatized emerged this year in August and immediately put all eyes to the low cost airline. Apparently, co-founders Tony Fernandes (AirAsia Group CEO) and Kamarudin Meranun (AirAsia X CEO) were in talks with several banks with the goal of getting funding to privatize the company.

However, according to AirAsia officials, they have no knowledge of any privatization plans.

In a statement made yesterday for Bursa Malaysia, an AirAsia spokesperson said:

We were first made aware of the privatization rumors since it surfaced in August this year with the company shares being actively traded. This was just prior to the company announcing its proposal for a share buy-back of up to 10 per cent on September 18. The company confirms that it is in discussions with certain bankers to partially finance the buy-back of these AirAsia shares.

Additionally, AirAsia also started drafting a circular for shareholders as preparation for the Extraordinary General meeting, which is scheduled for later this year in November. During the meeting the airline will seek the approval from its shareholders for the proposed share buy-back.

Yesterday’s privatization news also had an impact on AirAsia’s stock as the company saw over 1 million of its shares exchanged in the last 24 hours. AirAsia’s shares grew by 5.6 per cent and are currently t RM1.32 a share.

AirAsia Japan Granted Air Operator’s Certificate

Meanwhile, AirAsia is now free once again to fly to and from Japan as its unit there has received the Air Operator’s Certificate by the Civil Aeronautics Act by Ministry of Land, Infrastructure, Transport and Tourism of Japan.

AirAsia Japan will conduct its business from its hub in Chubu Central International Airport in Aichi prefecture to Shin-Chitose Airport in Sapporo, Sendai Airport and Taoyuan International Airport, Taiwan by spring next year.

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