KUALA LUMPUR (Nov 2): AirAsia X Bhd (AAX) has bagged a contract worth RM29.7 million to operate charter flights to transport the Malaysian Battalion (Malbatt) 850 forces to Beirut, Lebanon and back, as part of the United Nations Interim Force in Lebanon’s (Unifil) peacekeeping mission.

In a filing with Bursa Malaysia on Thursday, AAX said it had signed a passenger and ancillary services agreement with AirAsia Bhd. The low-cost carrier is primarily involved in chartering flights between Pangkalan TUDM (Royal Malaysian Air Force) Subang Airport and Beirut, Lebanon for four flights per year.

The agreement specified that the operations include the transportation of Malaysian Armed Forces delegates, baggage, and troops, along with their meals, while concurrently providing ground catering and facilities for the troops at Subang Airport during the take-off.

Meanwhile, AirAsia, a wholly subsidiary of Capital A Bhd, in a separate filing specified that the awarding of the contract to AAX was a result of a tender process organised by the Ministry of Defence, which was open to all Malaysian carriers with a prerequisite requirement that the carrier must have a valid registered account with the Ministry of Finance, which AAX did not have.

Thus, Capital A said the tender was submitted by AirAsia based on AAX’s pricing.

The agreement as agreed by both parties will commence from Oct 1, 2023 to Sept 30, 2026 for a three-year period.

At the time of writing on Thursday, shares in AAX had risen three sen or 1.56% to RM1.95, giving the carrier a market capitalisation of RM880.73 million.

Shares in Capital A, meanwhile, were down half a sen or 0.61% to 82 sen, valuing the group at RM3.48 billion.