Capital A to exit PN17 status by Q1 2025: Fernandes

 

Capital A Bhd is expected to exit Practice Note 17 (PN17) status by the first quarter of next year after submitting its proposed regularisation plan to Bursa Malaysia Securities Bhd today.

Chief executive officer Tony Fernandes said the group submitted the plan, which among others, includes a RM6 billion capital reduction, but would not affect flight frequency or reduce employee benefits.

“The regularisation plan is designed to strengthen our balance sheet by eliminating losses incurred during the Covid-19 pandemic and reflect the true value of our underlying assets in Capital A.

“I’m hoping that by February or March (next year), we will have AirAsia Group as a new company and Capital A out of PN17. It is huge for me, really huge.

“It’s a simple plan, it’s just a capital reduction. So I hope Bursa Malaysia will look at it favourably and approve it quite quickly,” he told the media after AirAsia Move’s Christmas celebration and special announcement today.

Fernandes said the plan represents Capital A’s achievement in strengthening its financial position and reaffirms its commitment to driving long-term growth from here onwards.

“Not many companies successfully exit PN17, and those that do often take many years to achieve it. What makes this milestone even more remarkable is that we have reached it while navigating the unprecedented challenges brought about by Covid-19.

“Once the plan is approved, Capital A will follow AirAsia X’s success in exiting PN17 almost a year ago,” he said.

He said besides Bursa Malaysia, shareholders and the High Court of Malaya have to approve the regularisation plan. The plan is subject to the completion of the disposal of aviation.

“With all approvals in place, we are confident in executing our strategy to deliver sustainable growth and long-term value, building a stronger and more resilient Capital A,” he said.

Fernandes said Capital A remains committed to regulatory compliance and will focus on mitigating risks, including market competition and operational disruptions.

“The group is confident of its strategic direction and its ability to execute the regularisation plan effectively, setting the stage for a stronger and a more resilient future,” he added.

- Bernama