AirAsia X Appeals Bursa Malaysia Decision, Continues Efforts to Exit PN17 Status

AirAsia X (D7), the Malaysian long-haul budget airline, has lodged an appeal against Bursa Malaysia’s decision to reject its application to exit PN17 status. The airline submitted the appeal on November 2, 2023, just two weeks after its initial request was turned down by the Malaysian stock exchange.

PN17 status is assigned by Bursa Malaysia to listed companies facing financial distress, and it necessitates the formulation of a regularisation plan to rectify financial issues or face potential delisting. AirAsia X received its PN17 notice in October 2021 following a disclaimer of opinion by auditors Ernst and Young in its audited financial statements.

In July, AirAsia X’s CEO, Benyamin Ismail, expressed optimism about the airline’s financial position when submitting the application to exit PN17. He highlighted successful restructuring efforts over the past couple of years that enabled the company to operate more soundly. Ismail emphasized the airline’s focus on cost reduction, revenue enhancement, and operational efficiency in response to challenges posed by the Covid-19 pandemic.

In a recent AviationWeek podcast, Ismail underscored the airline’s commitment to maintaining lean operations and cost-effectiveness, aligning with the low-cost carrier’s DNA. He reported that AirAsia X is nearing pre-pandemic levels, achieving an 83-84% load factor and an 80% increase in average fares.

AirAsia X’s fleet, consisting of seventeen A330-300s, serves 23 destinations across 12 countries, including India, New Zealand, China, South Korea, Indonesia, Australia, Saudi Arabia, Malaysia, Japan, and Taiwan. On November 7, the airline announced the discontinuation of its fifth freedom route between Sydney Kingsford Smith and Auckland International. Instead, it plans to resume flights between Gold Coast Coolangatta and Auckland in February 2024, citing increased demand for leisure travel in the region.

As the appeal process unfolds, AirAsia X remains focused on strengthening its financial position and operational efficiency, with the goal of securing approval to exit PN17 status from Bursa Malaysia.