Malaysian capital considers separate list of aviation activities

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Axiata Group Chairman and Chief Executive Jamaludin Ibrahim speaks during a news conference in Kuala Lumpur August 25, 2010. REUTERS/Bazuki Muhammad

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KUALA LUMPUR, Feb 11 (Reuters) – Capital A Bhd (AIRA.KL), owner of Malaysian low-cost carrier AirAsia, is forming an independent board of directors for its aviation arm while considering a separate listing of the business as the market recovers, its chief said on Friday.

Capital A chief executive Tony Fernandes told reporters in a virtual briefing that all companies in the group, including the airline, would be run independently and that the parent group intended to list the airline company.

“I think it’s up to the board to decide at the right time when they think they have to list and raise capital independently, but certainly from the board of Capital A, it’s really a plan “, did he declare.

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The group has appointed telecommunications industry veteran Jamaludin Ibrahim as non-executive chairman of AirAsia Aviation Group Limited, who said the full independent board would be announced soon.

Fernandes said the group aims to fly all of its 200 planes in six months, expecting a full recovery in activity in the fourth quarter, even if China, which contributes high tourist numbers, does not does not fully reopen the borders.

“We anticipate that China will not be completely open, but we can cover that with other territories,” Fernandes said, pointing to the growing number of travelers inside the country and in Southeast Asia.

AirAsia operates 45% of its fleet and aims to grow its Indonesian fleet from seven to 30 by the end of the year.

Capital A has also started an aviation consultancy business to help set up low-cost airlines other than AirAsia outside the ASEAN region for other owners. He is already working on two projects.

Last month, the group was labeled a company in financial difficulty by the national stock exchange. Companies with this label can be delisted if they fail to regularize their finances within a specified period. Read more

Capital A said the creation of the independent aerospace board was unrelated to the parent company being classified as a financially distressed company. Capital A takes care of the matter itself.

The group said it was working on a plan to “regularize its financial situation” and was looking to raise about 1 billion ringgit this year.

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Reporting by Liz Lee in Kuala Lumpur and Jamie Freed in Sydney; Editing by Clarence Fernandez and Gerry Doyle

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