Capital A (formerly AirAsia Group) submitted a normalization plan to the Malaysia Stock Exchange on December 23 to apply for the removal of its PN17 (Practice Note 17) status.
The company had been designated under PN17 due to financial difficulties stemming from travel restrictions imposed during the spread of the COVID-19 pandemic. It had been undertaking debt restructuring, capital reduction, share consolidation, and revising its business plans. The new business plan focuses on medium-haul routes, introduces an efficient and viable cost structure, and includes the rationalization of unprofitable routes and prioritization of high-profit routes in key markets. Investments in new routes, etc., have been postponed, with a review of equipment and contracts, staff rationalization, and optimization of operations also being implemented. Following approval from the Malaysia Stock Exchange, shareholders, and the High Court of Malaysia, the designation will be removed.
CEO Tony Fernandes stated, “Exiting PN17 has been a long-term goal, and we are very pleased to have taken this significant step. This plan aims to rectify the losses incurred during the pandemic and to strengthen our balance sheet by reflecting our true value.”
AirAsia X had already applied for the removal of its PN17 status in July 2023 and had its designation removed after recording profits for five consecutive quarters.
