Friday 29 Mar 2024
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KUALA LUMPUR (Jan 4): AirAsia X Bhd (AAX) has inked a charter agreement with PT Indonesia AirAsia (IAA) to operate 24 return flights between Jakarta and Kuala Lumpur to promote the Kuala Lumpur-Jeddah route to Indonesian passengers and to generate positive returns for AAX.

In a filing with Bursa Malaysia today, the long-haul operation of budget airline AirAsia Bhd said the deal will commence today and expire on Feb 29, 2016 or at the end of any extension period that may be agreed by both AAX and IAA.

The charter agreement, according to AAX, involves up to 8,640 seats as a dedicated fly-thru connectivity with its current Kuala Lumpur-Jeddah-Kuala Lumpur operations.

AAX is spending US$648,000 (RM2.82 million) for the 24 charter trips, or US$27,000 (RM117,450) per trip.

Tan Sri Tony Fernandes and Datuk Kamarudin Meranun are directors and major shareholders of both AAX and IAA. Hence, the deal is deemed to be a related party transaction.

"The audit committee, having considered all the relevant factors in respect of the agreement is of the opinion that entering into the agreement is in the best interest of the company as the transaction is entered under fair, reasonable and on normal commercial terms which are not detrimental to the interest of the minority shareholders," AAX said.

AAX shares closed unchanged at 18 sen today, for a market capitalisation of RM746.67 million.

(Note: The Edge Research's fundamental score reflects a company's profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)

 

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