Friday 29 Mar 2024
By
main news image

KUALA LUMPUR: AirAsia Bhd confirmed that its 49%-owned associate, PT Indonesia AirAsia (IAA), had received a letter from Indonesia’s ministry of transport that requires it to ensure a positive equity position by July 31.

“As this is a matter which has only been made known to us, we together with IAA are currently studying the letter closely as well as [seeking] a meeting with the ministry of transport,” the budget airline said in a filing with Bursa Malaysia yesterday.

“The letter has no immediate effect on the operations of Indonesia and the airline shall at all times continue to operate within the ambit of Indonesian laws,” AirAsia added.

Last Friday, The Jakarta Post reported that 13 airlines, including IAA, had been given until July 31 to restructure their balance sheets in order to have positive shareholders’ fund. Failing to do so, according to Indonesia's Law on aviation, their operating permits would be suspended.

 

This article first appeared in The Edge Financial Daily, on July 8, 2015.

      Print
      Text Size
      Share