AirAsia Group has indicated that it expects a robust resurgence in air travel in Southeast Asia in the coming months, as the budget carrier raises $233 million.
Malaysian tycoons Tony Fernandes and Kamarudin Meranun own the cash-strapped carrier.
The fund-raising effort, which will be supported by Fernandes, Kamarudin, and other current shareholders, will see the listing of seven-year redeemable convertible unsecured Islamic debt securities (RCUIDS) and warrants.
“The rights issue is a key component of our overall fund-raising strategy supporting a strong rebound in air travel across ASEAN in 2022,” Fernandes, AirAsia Group chief executive, said.
“We are gradually resuming flights in all of our key markets and look forward to returning to pre-Covid-19 levels on many of our popular routes in the new year alongside strong vaccination rates, better testing procedures, and education in all of our markets.”
The funding will provide strong liquidity for the airline to ramp up operations through next year, Fernandes said.
“After the most challenging two years in commercial aviation history, the end is finally within reach. We have survived the pandemic”.
“We have restructured, relaunched, and are now in a stronger position to recover faster,” he concluded.