AirAsia incorporates subsidiary to run business jet ops

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KUALA LUMPUR (April 17): Budget airline AirAsia Bhd has incorporated a wholly-owned subsidiary, as it set sights to become a full-fledged charter and private unscheduled business jet operator.

In a filing with Bursa Malaysia today, AirAsia said the objective of establishing AirAsia Corporate Charter Sdn Bhd (AACC) is to manage charter activities and as an asset holding company.

It said AACC’s principal activities are to acquire and manage the Bombardier Global Express 9M-CJG and to become a full-fledged charter and private unscheduled business jet operator.

"The initial issued and paid-up share capital of AACC is RM2 represented by 2 ordinary shares and further capital will be raised accordingly to cater for its operational needs," it said. The directors of AACC are AirAsia Malaysia chief executive officer (CEO) Aireen Omar and newly-appointed deputy group CEO of operations Tharumalingam Kanagalingam.

The incorporation of AACC is not expected to have any immediate effect on the issued and paid-up share capital or substantial shareholders’ shareholdings of AirAsia.

On March 16, AirAsia had signed an agreement to acquire a 20-year-old business jet from Caterhamjet Global Ltd (CJG) for US$10 million. This was deemed a related party transaction as AirAsia executive chairman Datuk Kamarudin Meranun and group chief executive officer Tan Sri Tony Fernandes are the sole shareholders of CJG, via their private vehicle Tune Group Sdn Bhd.

AirAsia’s share price fell one sen or 0.33% to close at RM3.04 today, giving it a market capitalisation of RM10.16 billion.