KUALA LUMPUR (March 16): Long haul low cost carrier AirAsia X Bhd (AAX) has incorporated a unit, AAX Aviation Capital Ltd (AAC), to facilitate the leasing of aircraft.

In a filing with Bursa Malaysia today, AAX said AAC was incorporated as a private limited company under the Labuan Companies Act 1990.

“The objective of establishing this entity is to facilitate the leasing of aircraft by the AAX Group, in order to comply with the revised Guidelines on the Establishment and Operations of Labuan Leasing Business which were published by the Labuan Financial Services Authority (“Labuan FSA”) on Dec 29, 2017,” AAX said.

It said AAC had a paid-up share capital of US$1,000 comprising 1,000 shares of US$1 each, and will be raised accordingly to cater for its operational needs.

At present, the directors of AAC are AAX chief executive officer Benyamin Ismail and chief financial officer Wong Mee Yen, the filing added.

In the same filing, AAX said AAC had in turn incorporated AAX Leasing One Ltd (ALO) to facilitate the leasing of aircraft.

“The incorporation of AAC and ALO are not expected to have any immediate effect on the issued and paid-up share capital or substantial shareholders’ shareholding in AAX,” it said.

At midday break today, AAX rose 1.21% or 0.5 sen to 42 sen, with 13.58 million shares done.