AirAsia X promotes KL-Jeddah route to Indonesians via charter contract

AirAsia X Bhd (AAX) has signed an agreement to charter aircraft from sister company PT Indonesia AirAsia (IAA) for 24 return flights between Jakarta and Kuala Lumpur for US$648,000 (RM2.82mil).

The long-haul, low-cost airline told Bursa Malaysia that the two companies had on Jan 4 signed the charter agreement which summed up to 8,640 seats as a dedicated fly-through connectivity with its current Kuala Lumpur – Jeddah – Kuala Lumpur operations.

It said the transaction was aimed at promoting the Kuala Lumpur – Jeddah route to Indonesian passengers via the charter and to generate positive returns for AAX.

“The charter between AAX and IAA shall commence on the date of the agreement and will expire on Feb 29, 2016 or at the end of the extension period as may be agreed by AAX and IAA,” the airline said.

AirAsia Investment Ltd, a wholly owned subsidiary of AirAsia Bhd, and PT Fersindo each hold 49% and 51% equity interest respectively in IAA. IAA is deemed to be a related party to AAX as AirAsia Bhd’s directors and major shareholders, Datuk Kamarudin Meranun and Tan Sri Tony Fernandes, are also the directors and major shareholders in AirAsia X.

Last month Indonesia AirAsia launched the inaugural Jakarta-Jeddah flight, which is scheduled to depart twice a week.

AAX shares closed unchanged at 18 sen on Monday with 6.75 million shares being transacted.