Fernandes to be co-group CEO of AirAsia X

Tan Sri Tony Fernandes, who is currently AirAsia’s non-executive director, has been redesignated executive director and co-group chief executive officer of the airline. The long-haul sister company of AirAsia told us that the change would be effective on Jan 1, 2018.

This means Fernandes, 53, will join current group CEO Datuk Kamarudin Meranun at the helm.

AirAsia Bhd, where Fernandes is already holding the posts of executive director and group CEO, also recently announced changes at the top as part of its internal reorganisation.

In a separate development, Bernama reported that AirAsia’s unit, PT AirAsia Indonesia Tbk (AAID), has completed the acquisition of 57.25% shareholding in PT Indonesia AirAsia (IAA).

In a filing with Bursa Malaysia yesterday, AirAsia said, as part of the transaction, AAID completed a rights issues and divestment of its coal trading and transportation businesses.

“The net cash proceeds of 26 billion rupiah (RM7.78mil) from the rights issue and the divestment would be used for working capital purposes of AAID,” it said.

It said AirAsia Investment Ltd (AAIL), AirAsia’s wholly-owned unit, would continue to hold a 20.95% direct shareholding in IAA and pursuant to the transfer of IAA Perpetual Securities amounting to 1.27 trillion rupiah to AAID, it has acquired a 47.71% shareholding in the listed AAID.

Based on yesterday’s last traded price of 240 rupiah, the value of AAIL’s quoted investments in AAID amounted to 1.22 trillion rupiah (RM367.1mil), it said.

“The objective of the above corporate exercise is to provide IAA access to the equity capital markets, increase its visibility and profile, and also to benefit from the higher corporate governance standards that demand greater transparency and accountability being an integral part of an Indonesia Stock Exchange-listed entity,” it said.