Business

AirAsia Bhd to pay AAX RM8 mil on addendum to aircraft wet lease agreement

Transaction will not have material financial impact on group, says Capital A 

Updated 4 years ago · Published on 16 Aug 2022 8:26PM

AirAsia Bhd to pay AAX RM8 mil on addendum to aircraft wet lease agreement
In a filing with Bursa Malaysia today, Capital A says the addendum includes amending the lease period to July 1 to August 31, 2022, from July 1 to September 30, 2022, payment terms and additional flight programme. – The Vibes file pic, August 16, 2022

KUALA LUMPUR – AirAsia Bhd (AAB), a wholly owned unit of Capital A Bhd, has entered into an addendum to an aircraft wet lease agreement with AirAsia X Bhd (AAX).

The wet lease agreement, dated June 22, 2022, is in respect of one Airbus A330-343 with crew, maintenance and insurance by AAX to AAB.

In a filing with Bursa Malaysia today, Capital A said the addendum includes amending the lease period to July 1 to August 31, 2022, from July 1 to September 30, 2022, payment terms and additional flight programme.

Capital A said under the agreement, AAB would pay US$1.80 million (RM8.02 million), exclusive of the 6% sales and service tax to AAX.

“Since AAB plans to increase seat capacity across all markets to meet growing post-Covid-19 recovery in passenger demand, the wet lease of available aircraft from AAX will allow AAB to ramp up seat capacity on trunk routes, as well as serve as spare capacity to be deployed during festive and peak travel periods,” it said.

Capital A added that the transaction will not have any material financial impact on the group in the financial year ending December 31, 2022, nor will it have any effect on the share capital and substantial shareholders’ shareholdings of the company.

“It is also not expected to have a material effect on the net assets per share, earnings per share and gearing of the group for the financial year ending December 31, 2022,” it said. – Bernama, August 16, 2022

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