AirAsia X reshuffles board and plans rights issue

AirAsia X reshuffles board and plans rights issue

AirAsia X has announced a rights issue of RMB 395 million (US$110 million) and the departure of chief executive Azran Bin Osman Rani.

The struggling carrier also said that Benyamin Ismail, manager of investor relations at AirAsia, has been made acting chief executive, with AirAsia’s co-founder Kamarudin Meranun has been appointed to the new role of group chief executive. Azran’s departure was described as a “mutual separation.”

AirAsia X made a record net loss of RMB 210.9 million in the third quarter (July-September) period, and there were rumours that Azran had resigned in November last year, in the wake of this. Azran told Asian Aviation at the time that these were, “Not true.”

The carrier has already begun a restructuring exercise, including order deferrals and sale-and-leaseback deals. Maybank analysts warn that the carrier has little room, “if any” to borrow, due to its low equity base.