AirAsia talks with investors near conclusion, says deputy CEO
The airline, whose parent company Capital A was classified as financially distressed by Malaysia's stock exchange in 2022, is arranging a RM1 billion (US$235 million) equity injection alongside financing for its extensive order book of new planes, Kamal said, speaking on a panel at the Reuters NEXT Asia summit.
Capital A Group CEO Tony Fernandes said in March that the 1 billion ringgit private placement was "done", but has not disclosed the identity of the investors. He declined to comment on a Bloomberg report in March that Saudi Arabia's sovereign wealth fund was set to invest US$100 million.
Kamal said AirAsia was coming to the final conclusion of talks with investors "not just from an equity injection perspective, but from an overall transactions perspective", and hopes to make an announcement in "due course".
AirAsia, one of Asia's largest low-cost carriers and one of Airbus' largest customers, has around 360 planes on order.
On Friday, AirAsia signed a memorandum of understanding with Airbus to buy 50 long-range A321XLR planes with conversion rights for another 20 of the single-aisle jets.
Fernandes said last week he hoped to exit the financially distressed status soon, once restructuring efforts are complete.
As part of this, Capital A is in the process of selling its AirAsia aviation business to long-haul unit AirAsia X to consolidate long- and short-haul operations under a single AirAsia brand.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Star
an hour ago
- The Star
Lotte Chemical losses within expectations
Maybank IB Research expects the company to begin registering depreciation of about RM700mil annually in financial year 2026. PETALING JAYA: Lotte Chemical Titan Holding Bhd is expected to be loss-making in the foreseeable future, as polymer-naphtha spreads remain subdued. The chemical group posted a core net loss of RM160.5mil for the second quarter ended June 30, 2025 (2Q25), taking its cumulative core losses to RM300mil for the first half of the year (1H25). Revenue for 2Q25 dropped 19.2% year-on-year (y-o-y) to RM1.44bil, mainly due to lower average selling prices (ASPs) of its products. The losses suffered were within expectations of analysts and dark clouds remain on the horizon. 'Based on our internal sensitivity analysis, Lotte Chemical's net profit breakeven high-density polyethylene-naphtha spreads need to be at least US$500 per tonne (currently: US$355 per tonne). 'In our view, it still faces a double whammy, as we do not foresee polymer prices to improve anytime soon as ASPs are expected to remain under pressure with a persistent supply glut and margin squeeze from elevated naphtha prices,' said Maybank Investment Bank Research (Maybank IB) in a report on the company. The research house also expected the company to begin registering depreciation of about RM700mil annually in financial year 2026 (FY26) while still experiencing losses as subdued selling prices are unlikely to cover production costs. 'We expect Lotte Chemical's net losses to widen in FY26 by 18% y-o-y,' the research house added. It expected Lotte Chemical to post a core net loss of RM604mil in FY25 and net core loss of RM712mil in FY26. CGS International (CGSI) Research noted Lotte Chemical's overall plant utilisation in 1Q25 and 2Q25 was unchanged at 46%, with Naphtha Cracker No. 1 at Pasir Gudang, Johor, shut down since Dec 15 last year leaving only the group's Naphtha Cracker No. 2 operating. Its new ethylene (Line) project in Indonesia was physically completed by mid-2025 and is currently undergoing commissioning and the creditor reliability test (CRT). Lotte Chemical expects the Line naphtha cracker to achieve commercial operations date by the October or November this year upon which depreciation of will commence and the interest expense related to the US$2.4bil project finance loan can no longer be capitalised and has to be expensed into its profit and loss statement. 'We expect the Line naphtha cracker to incur cash operating losses in the current market environment even with the partial use of propane/butane feedstock. 'However, after Line clears the CRT and achieves commercial operations date, it is possible it will dial down its utilisation rate, or even shut down altogether to reduce cash losses,' CGSI Research stated in a report. It added the instalment payments on the nine-year project finance loan will commence from June next year and require Lotte Chemical to take new debt to service the installments. Upside risks include Lotte Chemical potentially monetising the Line naphtha cracker to a trade buyer, CGSI Research said. The research house has retained its 'reduce' recommendation on the chemical group with a lower target price (TP) of 38 sen a share and based on 0.1 times its price to book value. Maybank IB has maintained its 'sell' call on Lotte Chemical with an unchanged TP of 39 sen pegged to 0.1 times the FY25 book value per share.
The Star
2 hours ago
- The Star
Yinson Production loan buyout done
PETALING JAYA: Yinson Production has successfully completed the buy-out of the project loan related to floating production, storage and offloading (FPSO) Atlanta from Brava Energia S.A. In a statement, the comprehensive FPSO solutions provider said at the time of the completion of the transaction, the principal amount outstanding under the project loan was approximately US$408.8mil (RM1.7bil), for which the company paid a total cash consideration of US$255.5mil plus US$1.9mil in accrued interest. 'The transaction was funded with cash on hand and the company expects to raise new debt financing for the FPSO in the future,' it said. Yinson Production acquired FPSO Atlanta from Brava through a purchase option in 2023, partly funded by the project loan provided by Brava.
New Straits Times
6 hours ago
- New Straits Times
New study underway to ensure fair pay for Gen Z, millennials
KUALA LUMPUR: The Human Resources Ministry is conducting a feasibility study on implementing a minimum wage for graduates, aimed at ensuring fair starting salaries that reflect their qualifications and skills. Its minister, Steven Sim, said the study, carried out through the National Wages Consultative Council, is a comprehensive effort crucial to addressing salary expectations among younger workers, particularly those from Generation Z and Y (millennials), who now make up the majority of the country's labour force. "The study is important to ensure that graduates, the majority of whom are from the Generation Z and millennial cohorts, receive starting salaries that are commensurate with their qualifications. "This includes ensuring their income is aligned with their academic qualifications and skills and is also relevant to the current challenge of rising living costs. "The findings and related policy proposals will be submitted to the government once finalised," he said in a written parliamentary reply published today. He was responding to Young Syefura Othman (PH-Bentong), who enquired about the government's intervention plan to improve the wage structure in employment sectors dominated by Generation Z and millennials, who are currently facing a high cost of living. Citing the 2023 Salaries and Wages Survey Report by the Statistics Department, Sim said 76 per cent of the 10.1 million wage earners are aged between 15 and 44. He said graduates aged 15 to 29, representing Generation Z, currently earn an estimated median monthly salary of between RM1,529 and RM2,076. Meanwhile, those aged 30 to 44, representing millennials, earn between RM2,702 and RM3,381. "The young workforce, which makes up the majority of the country's labour market, holds significant potential to be empowered through government policy interventions that support the improvement of their well-being and competitiveness in the future economy. "In this regard, the government has taken several strategic measures to address the issue of wage structure and ensure a fairer distribution of income, including the implementation of the Minimum Wage Order, the Productivity-Linked Wage System and the Progressive Wage Policy."
