KUALA LUMPUR (July 5): Capital A Bhd has entered into a wet lease agreement with AirAsia X Bhd (AAX) for the former to lease an Airbus A330-343 aircraft with complete crew, maintenance and insurance.

According to the International Civil Aviation Organization (ICAO), a wet lease is operated under the air operator certificate of the lessor — which is AAX in this case — with at least one crew member provided by the lessor.

In a filing with Bursa Malaysia, Capital A said the agreement, which is regarded as a related party transaction, will be effective from July 1 to Oct 31 this year.

Capital A said its wholly-owned subsidiary AirAsia Bhd will pay a total estimated consideration of US$3.84 million (RM16.91 million), exclusive of 6% sales and service tax, for the leasing of the aircraft.

The total estimated consideration takes into account the actual flown and planned wet lease of the aircraft, based on an hourly billing basis, said the group.

“The final total payment will vary based on hours eventually flown,” the group said.

Capital A said the wet lease of available aircraft from AAX will allow AirAsia to rapidly ramp up seat capacity on trunk routes, and serve as spare capacity to be deployed during the post-pandemic recovery period.

“AirAsia plans to increase seat capacity across all markets to meet growing post-Covid recovery in passenger demand,” it said.

Shares of Capital A gained one sen or 1.6% to 62.5 sen per share, giving it a market capitalisation of RM2.6 billion.