KUALA LUMPUR: AirAsia X (AAX) chief executive officer (CEO) Azran Osman-Rani (pic) presented a proposed revamp plan to the loss-making, long-haul, low-cost carrier’s board yesterday. The proposed plan, which aims to turn around the loss-making carrier, is expected to be announced soon, according to sources.

It is learnt that Azran, who has been rumoured to be on his way out, will stay on to steer AAX out of the turbulence.

A source close to the matter told The Edge Financial Daily at the board meeting yesterday that Azran had presented his proposal that could return the airline to the black in its fourth quarter ending Dec 31, 2014. It is understood that the board meeting chaired by Tan Sri Rafidah Aziz lasted more than four hours. AirAsia Bhd group CEO Tan Sri Tony Fernandes was also at the meeting via a conference call.

Fernandes yesterday told The Edge Financial Daily that business was solid. “Cash accretion is strong from the fourth quarter,” he said, adding that AirAsia X Thailand and Indonesia are “doing very well, cash is positive”.

Fernandes gave an assurance that the airline had already raised RM250 million and has a back-up of RM450 million if needed. But he admitted that the airline was cutting capacity and deferred the delivery of new aircraft. In fact, sources said AAX is expected to post deeper losses in the third-quarter results compared with a net loss of RM128.78 million in the second quarter ended June 30.

The MH370 and MH17 tragedies had a spillover effect on AAX, which had experienced a declining load factor. On top of that, AAX is facing overcapacity problem — too many aircraft but too few passengers — according to sources.

The Edge Financial Daily reported yesterday that AAX was facing payment problems relating to staff salaries and their fixed and variablle allowance.

Azran’s revamp plan hinges on the higher forward booking numbers in December, January and February.

When contacted, Azran said he would present a proposal to address the short-term issues faced by the airline plus new strategies moving forward for 2015.

“It is not true (of the rumour), I am not leaving ... as long as I can add value [to AirAsia X]. I have a very clear plan and will get the final approval from the board today (yesterday),” Azran said yesterday when asked if there was any truth in talks to remove him.

Azran, who did not elaborate further on the details, did say that more will be revealed during the announcement of AAX’s third-quarter results today.

This article first appeared in The Edge Financial Daily, on November 19, 2014.