KUALA LUMPUR – AirAsia Group Bhd has received approval from Danajamin Nasional Bhd for an 80% guaranteed loan of up to RM500 million under the Danajamin Prihatin Guarantee Scheme.
The scheme is part of the country’s economic stimulus package following the unprecedented Covid-19 crisis.
AirAsia executive chairman Datuk Kamarudin Meranun said the approval from the government is a strong endorsement of the group’s ability to recover quickly, and provides a welcome boost to its overall fundraising strategy as it prepares to return to the skies in all key markets.
“Countries around the world, including those in this region, have begun to reopen their international borders amid promising progress in vaccination rates,” he said in a statement today.
Malaysia’s adult vaccination rate is close to 90%, and interstate movement will be allowed once the nation hits that milestone.
“The Langkawi travel bubble has been a huge success, with overwhelming demand since we launched up to 90 services a week from September 16,” said Kamarudin.
“In Thailand, Indonesia and the Philippines, we are seeing pleasing progress as services have gradually started to resume.”
He said countries in the region continue to discuss and implement travel bubbles, and gradually reopen their international borders.
Given this, he said, AirAsia is confident that it will be able to recover and rebound strongly in the near future.
The loan was approved by the group’s lenders under a “club deal term” financing, with the aforementioned guarantee to be provided by Danajamin via Syarikat Jaminan Pembiayaan Perniagaan, a wholly owned entity of the Finance Ministry.
The financing is earmarked for working capital purposes, which will be utilised to support staff costs and aircraft maintenance as the group prepares to ramp up operations leading to the reopening of interstate and international borders, said Kamarudin. – Bernama, October 5, 2021
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