KUALA LUMPUR, Nov 30 — Shares of AirAsia X Bhd (AAX) were lower at the close today despite the budget airline saying it has made progress in formulating its Practice Note 17 (PN17) regularisation plan that will result in the creation of a consolidated aviation group.

At 5pm, the long-haul low-cost airline fell by 1.1 per cent, or half-a-sen, to 44 sen with 372,300 shares transacted, giving it a market capitalisation or RM182.5 million.

AAX shares were flat at the opening trading session and turned weaker at 10.55am.

AAX returned to the black in the three months ended September 30, 2022 (5QFY22), on marginal growth in revenue and a significant reduction in cost for maintenance and overhaul. It said in a statement yesterday that it is expected to announce the regularisation plan to Bursa Malaysia Securities in January 2023.

This will be followed by the official submission for approval in February 2023.

Chief executive officer Benyamin Ismail said the strategy being formulated is expected to entail a proposed acquisition of Capital A Bhd’s aviation arms, AirAsia Bhd (AAB) and AirAsia Aviation Group Ltd (AAAGL), which also include AAAGL’s respective shareholdings in AirAsia Indonesia, AirAsia Philippines, and AirAsia Thailand.

"As we returned to black on the back of a robust recovery across all key metrics, we are progressing well on our regularisation strategy to uplift us from the PN17 status,” he said.

Following the acquisition, AAB, AAAGL, and AAX will form a consolidated aviation group, subject to the approval of our stakeholders and relevant regulatory authorities. — Bernama