AirAsia gets RM1b bank funding

Last updated on May 6th, 2021 at 10:24 am

KUALA LUMPUR – AirAsia Group Bhd has received a backing support from certain financial institution for more than RM1 billion, One day after its auditor cast doubt on the company’s ability to continue the business.

AirAsia CEO Tan Sri Tony Fenandes said that the portion of the debt funding would be eligible under the Danajamin Prihatin Guarantee Scheme.

The airline industry has been deeply affected by the coronavirus pandemic. AirAsia said in a statement that they have been presented with proposals in various forms of capital raising and currently ongoing  discussions with numerous parties in seeking a favourable outcome for the group.

Several financinal institutions have expressed support by funding over 1 billion ringgit. Subsidiaries in both Philippines and Indonesia have also applied for loans to sustain operations.

This week, AirAsia posted a first 1st quarter loss of nearly $200 million, the biggest quarterly loss of the company since its 2004 listing.

According to CGS-CIMB, a Equities research firm, the budget airliner would need RM3bil funding to maintain a healthy cash position.

The airliner has begun cutting jobs and salaries to save costs. Air Asia have also sought deferrals from our supportive lessors for a possible extension. The company have restructed 70% of its fuel hedging contracts and currently negotiating for the remaining exposure. A move that is expected to reduce 50% of this year’s expenses .

Related Article:

https://www.theasianaffairs.com/malaysia/2020/07/07/airasia-reports-rm800mil-loss-in-q1-due-to-pandemic/

Katherine S

1/4 German, 3/4 Malaysian. I write, follow and monitor closely political news happening in Malaysia, and other happening news in the ASEAN region. Newswriter for the best ASEAN news website - The Asian Affairs.

Recent Posts

Vietnam International Defense Expo 2024

The 2024 Vietnam International Defense Expo was inaugurated by the Prime Minister Pham Minh Chinh on December 19, 2024 and…

December 22, 2024

Shooting concludes: Stranger Things 5 to release on Netflix in 2025

Created by the Duffer Brothers, Stranger Things is one of the most popular sci-fi horror series globally. It is set…

December 21, 2024

China’s Hypersonic Expansion in Asia Raises Alarms for India

According to the US Department of Defense, China has now produced the most sophisticated supply of hypersonic weapons in the…

December 21, 2024

Melaka International Halal Festival 2024

The Melaka International Halal Festival 2024 aims to turn the city as the prime center of the Halal products and…

December 21, 2024

Chunichi Dragons Renews the Contract of Hiroto Takahashi with Annual Salary of 120 million yen

On Saturday, the stalwart of Chunichi Dragons Pitcher, Hiroto Takahashi attended the negotiation for his contract renewal for the next…

December 21, 2024

Biden-Harris administration cancels another $4.28 billion in US student loans

US President Joe Biden has cancelled another $4.28 billion in student loans for nearly 55,000 people across the country, the…

December 20, 2024

This website uses cookies.

Read More