Substantial MAHB dues paid, says AirAsia

11 September 2009

AIRASIA Bhd (5099)has paid more than half the amount owing to Malaysia Airports Holdings Bhd (MAHB), according to its chairman.

"A substantial sum has been paid and we are now in talks with MAHB on the balance," AirAsia chairman Datuk Aziz Bakar told Business Times after chairing the group's extraordinary general meeting to approve a 20 per cent private placement in Selangor yesterday. He did not elaborate.

The budget carrier had withheld some RM110 million in payments to MAHB, claiming that it was being overcharged by the airport operator.

On the airline's private placement, Aziz said he is confident that it will be very well-received by investors.
"We are positive that it will be well-received, something that has been reflected in our share price as well," Aziz said.

AirAsia just completed a roadshow to generate interest for the placement in Singapore, Hong Kong, London and Malaysia.

"We have a strong following overseas, and we really hope the local investors will take the cue from foreign sentiments," AirAsia group chief financial officer Rozman Omar said.

The budget airline hopes to raise at least RM500 million from the private placement.