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OCTOBER 2020

Week 43

Daily Digest

Orient Aviation Daily Digest: AirAsia Group documents details of US$72 million loan from Sabah Development Bank

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October 26th 2020

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October 26, 2020

  • AirAsia Group has reported details of a 300 million ringgit (US$72 million) loan from Sabah Development Bank Berhad. Read More » The Malaysia-headquartered airline company informed Bursa Malaysia on Friday the loan, which is not backed by a government guarantee, would fund specific development projects in Sabah: 70 million ringgit for a digital food supply chain and cold chain facilities, 110 million ringgit to part-finance a project to turn Kota Kinabalu International Airport into an international hub for the airline, 10 million ringgit to enhance e-commerce platforms and marketability of Sabah products and 10 million ringgit to promote tourism destinations in Sabah on the AirAsia website. "This loan is in line with AirAsia’s pivot into the digital business," AirAsia said, and added it would create about 100,000 jobs in the process.
     
  • Malaysia Airports Holdings Berhad (MAHB) has defended its decision to file a writ of summons and statement of claim against long-haul LCC, AirAsia X, in the High Court of Kuala Lumpur intended to recover 78 million ringgit (US$19 million) in outstanding charges. It said it was pursuing its legal rights to recover debt critical for the upkeep and maintenance of its airports. "The outstanding aeronautical charges are regulated charges by the government including passenger service charges (PSC), passenger service security charges, aircraft parking and landing charges, aerobridge charges, check-in counter charges and late payment charges," MAHB said in a statement yesterday. AirAsia X said its board was reviewing the statement of claim.
     
  • Thai Airways International (THAI) was expected to issue Request For Proposals (RFP) to lessors this week as it worked towards simplifying and downsizing its fleet as part of a business rehabilitation plan required by Thailand's Central Bankruptcy Court, FlightGlobal has reported. The news service cited multiple sources from among attendees at a virtual meeting with the airline's chief financial officer. Lessors have been asked to return their RFPs by November 4, the report said.
     
  • Six Virgin Australia (VA) directors, including chair Elizabeth Bryan, have resigned from the board as the sale of the financially-troubled airline to private equity group, Bain Capital, neared completion, the airline's administrators, Deloitte, said in a regulatory filing to the Australian Securities Exchange (ASX) on Friday. Bryan, Kenneth Dean, Trevor Bourne, Sir Angus Houston, Judith Swales and Martin Tan have tended their resignations, while the administrators said they had terminated the board of appointments of three directors yet to resign – Raymond Gammell, Hou Wei and Kevin Xing. Outgoing VA CEO, Paul Scurrah, remains on the VA board alongside Virgin Group nominee, Warwick Negus, and Deloitte-appointed director Alan Hunt.
     
  • Biman Bangladesh Airlines said late last week it planned to resume three nonstop routes between Bangladesh and India, starting with Dhaka-Delhi on October 29, followed by Dhaka-Kolkata on November 1 and Dhaka-Chennai on November 15. Passengers would have to be in receipt of a negative test result from COVID-19 before departure from Bangladesh.
     
  • Japanese (LCC), Peach Aviation resumed international flights yesterday, after a seven-month absence due to the coronavirus pandemic, with nonstop flights between Osaka Kansai and Taipei Taoyuan. Two more international routes kicked off today: nonstop flights both from Tokyo Haneda and Tokyo Narita to Taipei Taoyuan. Peach said yesterday it also was offering airport pickup services – provided by a third party – at Taoyuan Airport due to restrictions on passenger use of public transportation after arriving at the airport.

    LCC Peach completed its move from Tokyo Narita Terminal 3 to Terminal 1 yesterday.
     
  • Australia's minister for foreign affairs, Marise Payne, said today she had sought an explanation from the Qatar government after it was reported nine Australian women were taken off a Qatar Airways flight at Doha, bound for Sydney, before departure and subjected to a medical examination to determine if they had recently given birth. "This is a grossly, grossly disturbing, offensive, concerning set of events," Payne told reporters in Canberra today, according to a transcript posted on the foreign minister's website. "It is not something I have ever heard of occurring in my life, in any context. We have made our views very clear to the Qatari authorities on this matter." Media reports said authorities had found an abandoned baby in an airport bathroom and were looking for who was responsible.

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