News
AirAsia shareholders approve US$241 million cash raising
November 12th 2021
AirAsia Group shareholders have approved a proposal to raise RM1.02 billion (US$241 million) through a rights issue. Read More » The proposal to issue seven-year redeemable convertible unsecured Islamic debt securities was approved by 461 shareholders with 69 opposed. AirAsia has been seeking funding to reinforce its balance sheet as it weathers the COVID-19 pandemic. Last month, it received approval for a mostly government-backed loan facility of up to RM500 million to be earmarked for working capital. The shareholder vote came as AirAsia Group CEO, Tony Fernandes, told reporters the airline could return to pre-pandemic levels within three months if borders were opened “tomorrow”. "The demand is there and we can get to pre-COVID just like that,’’ Fernandes said. “That is not an issue as we have the planes, the people and we have the demand. It is really up to governments to be brave. We now have to live with COVID-19. But I am optimistic. We are seeing more and more countries opening their borders, including Singapore and Thailand. If borders are open tomorrow, in three months we will be back to normal but my guess is six to nine months for us to be back to pre-COVID levels."
