Tan Sri Tony Fernandes, the acting group chief executive of AirAsia X (AAX), has resigned from his position with immediate effect, according to the company’s filing with the local stock exchange. He stated that he wishes to focus on other responsibilities.
A reliable source claims that Mr. Fernandes, the CEO of Capital A, the holding company for AirAsia Aviation Group, intends to focus on the parent company rather than removing the long-haul budget airline AAX from Practice Note 17 (PN17) classification.
Financially troubled companies are given the designation PN17, and if they don’t get their finances in order within a particular time frame, they risk being delisted.
The insider claimed that “he wants to focus on Capital A and get the airline out of PN17 as quickly as possible.”
After its external auditors, Ernst & Young, expressed a disclaimer of opinion on the airline’s audited financial statements for the 18-month financial period that ended June 30, 2021, AAX dropped into the PN17 category in October 2021.
The low-cost carrier declared last year that it had 12 months to improve its financial situation and was planning to raise money while also completing a suggested debt and corporate restructure.
Mr. Fernandes’ departure was announced just a few days after AAX revealed last Wednesday that it intended to develop a thorough recommended plan to regularise the PN17 issue.