Capital A wins shareholders’ vote of confidence on its strategy as it progresses from an airline to low-cost, high-value, inclusive aviation and travel group
Notation of the financial statements for the fiscal year 2022
All resolutions passed at 6th Annual General Meeting
SEPANG, 15 June 2023 – Capital A Berhad (“Capital A” or the “Group”) held its Sixth Annual General Meeting (“AGM”) today, where the financial results of FY2022 were received and all resolutions submitted were passed by its shareholders (see here).
Capital A CEO Tony Fernandes said, “We wish to thank our shareholders for their unwavering support and confidence in our turnaround strategy with their overwhelming vote of confidence in all matters requiring their approval today.
“2022 has truly been a defining year for Capital A for many reasons: the company generated strong revenue of RM2.6 billion and recorded the first full year positive EBITDA since the beginning of the global pandemic. All businesses within the Group have benefited from the robust return of air travel and delivered stronger margin levels. As we overcame all odds of not only surviving but growing, despite the unprecedented challenges of Covid and other macroeconomic headwinds without any government support, we are proud to announce that we have successfully progressed from an airline to now a low-cost, high-value inclusive aviation and travel group.
Aviation Group - AirAsia Malaysia, AirAsia Thailand, AirAsia Indonesia and AirAsia Philippines are flying high again with 157 aircraft reactivated as of 1Q2023, with enhanced profitability amid rationalised air fares and stabilising external factors. 229 routes activated with target to operate 290 as of 4Q2023. We are expanding across Asean based on a wide network and a strong brand, with the launch of AirAsia Cambodia expected to start operating in Q4, we are looking for opportunities in the remaining Asean countries that deserve an airline.
Move - airasia Digital has received Board approval to be renamed to MOVE, comprised of airasia Superapp and fintech provider BigPay to provide the most accessible, affordable and inclusive travel app, aiming to meet the needs of all travellers, including onground travellers with ride hailing offerings on airasia ride. It’s a unique OTA utilising a vast database of airasia, maximising and cross-selling, with closer collaboration through the embedment of BigPay products and services in Superapp to grow revenue.
Teleport - logistics venture of Capital A, has continued to deliver value through diverse service portfolios, including cargo, e-commerce and express delivery. We are expecting additional capacity with the delivery of the first of the three new A321F dedicated freighters in June, aiming to further tap into the tremendous network to offer accessible, affordable, and inclusive logistics service, and become the market leader in Asean. The aim is to enhance the cargo hub operations in key regions such as Southern China, Vietnam and India, that will enable us to capture opportunities and serve customers more effectively.
Aviation Services - covers numerous portfolio businesses which already serve AirAsia and are anticipated to grow substantially leveraging demand for high-value and low-cost with extensive experience and expertise. MRO service provider Asia Digital Engineering (ADE) has seen high demand for services, with all seven lines for base maintenance and other maintenance visit fully booked for 2023, and now receiving requests for 2024 slots up to June, encouraged by the recent USD100M investment from OCP Asia, hangers built in Johor, and further sites in Asean. Expansion in Ground Team Red (GTR - ground handling provider, expanding), Santan (inflight menu and on ground restaurant chain), airline consulting team in AirAsia Consulting, AirAsia Leasing co. and AirAsia Shared Services which are all on a solid path to securing more third party airlines and partners to create additional revenue streams.
On the Group’s Practice Note 17 (PN17) status, he continued, “We have reported to Bursa Malaysia that an interim financial review is presently being carried out as part of the evaluation of the PN17 regularisation plan prior to any regulatory submission.” He added, “The Company will make an immediate announcement once the plan has been finalised.”
Looking forward, he stated, “Over the past few years, we have focused on building a more resilient and diversified business model including the implementation of separate dedicated boards to drive the success of our core businesses. We feel great that our vision of becoming more than an airline but a low-cost, high value inclusive aviation and travel group has been vindicated by outside investors and the market. We are excited to expand our horizons and seek promising fundraising opportunities that lie ahead for Capital A.
“Lastly, I remain committed to staying in the Capital A Group for the foreseeable future. I do want to emphasise that we do have a robust succession plan in place that involves many of the seasoned leaders in our management team who will continue to deliver on Capital A’s long term vision, to innovate, disturb and add value to people’s lives.”
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