KUALA LUMPUR, Nov 2 — AirAsia X Bhd (AAX) has entered into a passenger charter and ancillary agreement with AirAsia Bhd (AAB) to operate charter flights to transport the Malaysian Battalion (Malbatt) 850 forces to Beirut, Lebanon and vice versa for the United Nations Interim Force in Lebanon’s peacekeeping mission from October 1, 2023 to September 30, 2026 for a contract sum of RM29.70 million.

In a Bursa Malaysia filing today, AAX said the charter operation involved a total of four return charter flights per year between TUDM Subang Airport and Beirut-Rafic Hariri International Airport, with aircraft seat capacity of a minimum of 270 passengers, including inflight meals, cargo tonnage of 18 tonnes and insurance.

The charter operation also includes ancillary services such as providing accommodation and "door to door” services to move the Malbatt forces and civilian personnel including baggage and cargo from their respective bases in Kuantan, Pahang and Port Dickson, Negeri Sembilan to TUDM Subang and vice versa.

"The contract sum will be paid in the course of three years. Upon completion of each yearly operation of the charter operation, AAX shall provide an invoice to AAB for the relevant amount payable for the four operations in that particular year,” the filing said.

AAX said it has excess capacity available to cater to the requested charter operation and with a view to generating revenue with a 27 per cent projected margin, hence the agreement with AAB.

AAB was awarded the contract following a Defence Ministry tender process which was open to all Malaysian carriers, a separate statement said.

A requirement was that the carrier must possess a valid registered account with the Finance Ministry (MOF) in order to participate in the tender, the statement said.

"As AAX does not have a valid account with MoF, the tender was submitted by AAB based on AAX’s pricing. The total amount transacted between the company and the related parties and/or persons connected with them for the preceding 12 months is RM360,546.79,” AAB said. — Bernama