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Capital A in last leg of finalising PN17 plan

Publish date: Thu, 30 Nov 2023, 09:25 PM

KUALA LUMPUR: Capital A Bhd is in the final stretch of finalising its Practice Note 17 (PN17) regularisation plan and aims for a full submission to Bursa Malaysia soon. 

In a statement, the company noted the uplifting of AirAsia X from PN17 served as a significant boost to Capital A as it enables the group to full focus on exiting PN17 and delivering significant value to its shareholder. 

"In the coming months, the group anticipates making significant announcements regarding asset disposals and public listings, positioning the company on a solid foundation for future growth.

"The group anticipates all lease liabilities will be restructured by December 2023, having made significant progress with creditors, in addition to GE and Airbus already having restructured, which reflects a major vote of confidence from the partners," it said. 

The company posted a lower net loss of RM178.82 million in the third quarter ended Sept 30, 2023 (Q3 2023) compared to a net loss of RM901.31 million in Q3 2022. 

Its quarterly loss, however, came after the company posted three consecutive profitable quarters. 

Revenue jumped 115.8 per cent year-on-year (YoY) to RM4.23 billion versus RM1.96 billion in Q3 2022 driven by the revival of air travel during the period. 

For the nine-month period, the company registered a net profit of RM996.55 million compared to a net loss of RM2.74 billion in the corresponding period last year. 

Revenue rose to RM9.91 billion from RM4.24 billion a year earlier. 

Capital A chief executive officer Tan Sri Tony Fernandes said the company remained steadfast and focused on restructuring against tough market conditions and competition.

"Looking ahead to 2024, we project a significant upswing. With the absence of one-off costs, and the reactivation of our full fleet, coupled with the restoration of frequencies, we are strategically poised for a more resilient performance. This collective initiative positions us for a stronger 2024, beating the benchmark set in 2019.

"With regards to the PN17, we are in the final stages of completing the regularisation plan and will share comprehensive updates as soon as everything is finalised. 

"Simultaneously, the collaboration between Capital A International, to be incorporated, and the US-based SPAC Aetherium, is a milestone that would mark our very first entry into the US market, linking us with the largest capital market and enhancing our access to international liquidity," he said. 

He also noted the company will start announcing a profit forecast in 2024. 

"This journey is just the beginning to reward shareholders' faith with our commitment to deliver tangible success and sustainable growth," he added. plan

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