AirAsia X Files to Remove PN17 Shackles As A330s Take Off


  • AirAsia X is seeking to remove its classification as a Practice Note 17 Affected Issuer, which has been attached to the carrier since July 2020.
  • The airline underwent various measures to improve its financial position, including debt restructuring, reduction of share capital, and revision of its business plan.
  • AAX’s operational and financial performance is improving, with three consecutive quarters of net income and positive shareholders’ equity as of March 31, 2023.

No airline wants to operate with a virtual asterisk against its name, which is why AirAsia X is keen to release the Malaysia Stock Exchange Practice Note 17 advisory now attached to the carrier. On Friday, the airline announced it was seeking to remove the classification from its list.

Good times are coming back for AAX

AirAsia X (AAX) said it is seeking relief from Bursa Malaysia Securities Berhad (Bursa Securities) to exempt the airline from the requirement to submit a Proposed Regularization Plan. The plan is required under the Main Market Listing regulations of the Malaysian stock exchange. Subsequently, AAX wishes to remove its classification as a Practice Note 17 Affected Issuer, which was triggered in July 2020.

An AirAsiaX aircraft in flight.

Photo: Airbus

In Friday’s announcement, AAX said it has undertaken a wide range of measures and corporate exercises to improve its financial position since then. These measures include a debt restructuring scheme, a share capital reduction of 99.9% of AAX’s issued capital, share consolidation, and a revision of its business plan.

In its revised business plan, AAX basically said it was going back to basics by adopting a strategy and structure that would deliver profits. It said it had adopted a leaner and more viable cost structure with a primary focus on medium-haul flight operations, a rationalized network plan that ended unprofitable routes, and a refocus on routes with proven loads and yields in key markets. AAX CEO Benyamin Ismail said:

“The restructuring exercises we have undertaken over the past two years have enabled us to transform and reset AAX to a more sound and viable financial position. Since we emerged from hibernation in April 2022, we are pleased to share that AAX’s operational and financial performances are improving in line with the increase in demand we have observed in all our key markets.”

The A330 is the way forward

Aircraft information from shows that AirAsia X has a fleet of 15 Airbus A330-300s, with an average age of 12.2 years. The data lists eleven aircraft as in operation, one in maintenance, and three in storage. Most A330s are configured in a two-class layout of 377 seats, with 12 in business class and 365 in the economy cabin. The list also shows orders to Airbus for 20 A321XLRs, one A330-300, and 15 A330-900neos.

AirAsia X Airbus A330-300 |  9M-XXH

Image: axell.rf | Shutterstock.

As part of its restructuring, AAX has also postponed all investments in new and undeveloped routes, besides restructuring all its contracts and arrangements related to its fleet and operations to better align with its future size and requirements. In what it describes as a “right-size strategy,” AAX has assembled the manpower to ensure “its workforce is tightly aligned with its operational requirements.”

Business has been good flying the A330s, with passenger loads of 73%, 79%, and 80% for the quarters ending September 2022, December 2022, and March 2023. All these adjustments and results have seen AAX grow from 12 quarters of losses since the quarter ended September 30, 2020, net income – March 2023) and reporting positive shareholders’ equity as of March 31, 2023.


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