Malaysia AirAsia X to Request $ 120 Million Government Guaranteed Loan
In its unaudited quarterly report for the three months ending June 30, released on September 27, AirAsia X (D7, Kuala Lumpur Int’l) revealed that it plans to apply for a state-guaranteed loan until MYR 500 million ringgit (USD 119.5 million) under the Danajamin Prihatin Guarantee Scheme (DPGS), launched last year to keep the Malaysian economy on the move during the pandemic.
âThis application is subject to credit assessment, final assessment and approval from the relevant financial institutions. At the moment, the company is in discussions with a financial institution to obtain the DPGS loan, âthe low-cost long-haul carrier of the AirAsia group said in its notes to the accounts.
The DPGS guarantee scheme, valued at MYR 50 billion (USD 11.9 billion), covers up to 80% of the loan amount for financing the working capital needs of businesses over a period of up to at ten years old. As part of a program update announced in February, the period of availability to apply has been extended until the end of 2021 and the maximum amount of funding has been increased from MYR 500 million to MYR 1 billion (US $ 239 million ).
AirAsia X recorded a net loss of MYR 24.63 billion (US $ 5.88 billion) for the quarter April 1 to June 30, on revenue of only MYR 72.26 million (US $ 17.25 million) .
He stressed that during the period when the company “suffered the full impact of the Covid-19 pandemic, and with the suspension of scheduled flight operations since April 2020 and the parking of the majority of the aircraft fleet, the Company performance indicators are not meaningful. “A tabular presentation of revenue and cost measures has been omitted from the report,” because there is no like-for-like comparison with the same quarter of 2020 “.
In its notes to the unaudited accounts, the carrier added that the validity of the going concern assumption in its last annual report depended on its “ability to gradually resume scheduled flight operations in a staggered manner from the start of 2021 and its ability to return to profitability which requires the successful implementation of management’s plans to secure the continued support of aircraft lessors, maintenance service providers and financial institutions. operation for the preparation of the financial statements is no longer appropriate, adjustments will have to be made to measure the assets at their realizable value and to provide for other liabilities that may arise.
As previously reported, on September 15, Malaysia’s High Court granted AirAsia X a further extension of a restraining order on 15 of its creditors, which it authorized in February to help the carrier with its ongoing restructuring and keep meetings with creditors.