Thursday 28 Mar 2024
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KUALA LUMPUR (March 31): AirAsia X Bhd (AAX)  will be providing commercial sharing services and support to Philippines AirAsia Inc (PAA) for PAA’s flights into and out of the destinations that AAX flies to.

In its filing with Bursa Malaysia, AAX said it entered into a commercial services agreement with PAA today to facilitate this.

PAA operates in and out of several hubs in the Philippines, flying both domestic and international routes.

The agreement, which will cover airport management and group handling services (including line operations and manpower) as well as government and regulatory liaison services, is valid for one year, and will be renewed on an annual basis.

AAX said that the contract is valued at RM1.383 million.

“The agreement will not create material financial impact in the current financial year nor will it have any effect on the share capital and substantial shareholders’ shareholdings of the company,” it said.

“It is not expected to have material effect on the net assets per share, earnings per share and gearing of the Company for the financial year ending in Dec 31, 2017,” it added.

AAX’s share price settled unchanged at 40 sen, valuing the group at RM1.66 billion.

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