AGL 38.54 Increased By ▲ 0.97 (2.58%)
AIRLINK 129.50 Decreased By ▼ -3.00 (-2.26%)
BOP 5.61 Decreased By ▼ -0.03 (-0.53%)
CNERGY 3.86 Increased By ▲ 0.09 (2.39%)
DCL 8.73 Decreased By ▼ -0.14 (-1.58%)
DFML 41.76 Increased By ▲ 0.76 (1.85%)
DGKC 88.30 Decreased By ▼ -1.86 (-2.06%)
FCCL 35.00 Decreased By ▼ -0.08 (-0.23%)
FFBL 67.35 Increased By ▲ 0.85 (1.28%)
FFL 10.61 Increased By ▲ 0.46 (4.53%)
HUBC 108.76 Increased By ▲ 2.36 (2.22%)
HUMNL 14.66 Increased By ▲ 1.26 (9.4%)
KEL 4.75 Decreased By ▼ -0.11 (-2.26%)
KOSM 6.95 Increased By ▲ 0.10 (1.46%)
MLCF 41.65 Decreased By ▼ -0.15 (-0.36%)
NBP 59.60 Increased By ▲ 1.02 (1.74%)
OGDC 183.00 Increased By ▲ 1.75 (0.97%)
PAEL 26.25 Increased By ▲ 0.55 (2.14%)
PIBTL 5.97 Increased By ▲ 0.14 (2.4%)
PPL 146.70 Decreased By ▼ -1.70 (-1.15%)
PRL 23.61 Increased By ▲ 0.39 (1.68%)
PTC 16.56 Increased By ▲ 1.32 (8.66%)
SEARL 68.30 Decreased By ▼ -0.49 (-0.71%)
TELE 7.23 Decreased By ▼ -0.01 (-0.14%)
TOMCL 35.95 Decreased By ▼ -0.05 (-0.14%)
TPLP 7.85 Increased By ▲ 0.45 (6.08%)
TREET 14.20 Decreased By ▼ -0.04 (-0.28%)
TRG 50.45 Decreased By ▼ -0.40 (-0.79%)
UNITY 26.75 Increased By ▲ 0.35 (1.33%)
WTL 1.21 No Change ▼ 0.00 (0%)
BR100 9,806 Increased By 37.8 (0.39%)
BR30 29,678 Increased By 278.1 (0.95%)
KSE100 92,304 Increased By 366.3 (0.4%)
KSE30 28,840 Increased By 96.6 (0.34%)
Business & Finance

Malaysia's AirAsia seeks nearly $500mn in funding: report

  • The budget carrier, like other airlines, has been rocked by the COVID-19 pandemic that has hammered demand for air travel.
  • AirAsia said in a statement some financial institutions had indicated they would support a funding request of over 1 billion ringgit.
Published July 9, 2020

KUALA LUMPUR: Malaysia's AirAsia Group Bhd is looking to raise 2 billion ringgit ($469 million), its CEO was quoted as saying by the Nikkei Asian Review on Thursday, a day after its auditor cast doubt on the airline's ability to continue as a going concern.

The budget carrier, like other airlines, has been rocked by the COVID-19 pandemic that has hammered demand for air travel. Its auditors said AirAsia's financial statements and current industry conditions indicated material uncertainties that could raise doubts about the company's future prospects.

AirAsia said in a statement some financial institutions had indicated they would support a funding request of over 1 billion ringgit and that it was also considering various fundraising options, including debt and equity.

In an interview with the Nikkei Asian Review, Chief Executive Tony Fernandes said the airline would look to raise a total of 2 billion ringgit in the next six months.

"At 1 billion ringgit, we are comfortable. But if we can raise 2 billion ringgit, we would be in a very comfortable position," Fernandes said in the interview.

Part of the funding would come from a share offering within the next six months, Fernandes said, adding the new shares would be placed with a third-party investor.

Fernandes also said AirAsia could return to profitability next year.

He denied speculation the airline was looking to exit its joint ventures in India and Japan.

India's Business Standard newspaper reported on Thursday, citing banking sources, that Indian conglomerate Tata Sons was in talks to buy out AirAsia's stake in their airline joint venture in India at a steep discount.

AirAsia said earlier on Thursday it was looking to at least halve cash expenses this year and that it had begun to cut jobs and salaries to save costs.

Earlier this week, the airline posted a first-quarter loss of nearly $200 million, its biggest quarterly loss since its 2004 listing.

Comments

Comments are closed.