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KUALA LUMPUR: 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 Oct 1, 2023 to Sept 30, 2026 for a contract sum of RM29.70mil.
In a Bursa Malaysia filing yesterday, 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 seating capacity of a minimum of 270 passengers, including inflight meals, cargo 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, plus baggage and cargo from their respective bases in Kuantan, Pahang and Port Dickson, Negri Sembilan, to TUDM Subang and vice versa.
“The contract sum will be paid over 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% 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.
Meanwhile, in a separate announcement, AAX said it had submitted an appeal to Bursa Malaysia Securities Bhd (Bursa Securities) against the latter’s recent rejection for the airline’s application for proposed relief and lifting of its Practice Note 17 (PN17) status.
The medium to long-haul low-cost carrier said it has come with a renewed focus and determination on exiting the PN17 status.
“The foremost short-term goal for the airline is to emerge from the PN17 status as smoothly and swiftly as possible to boost the post-pandemic upward trajectory for future sustainable and profitable growth.
On Oct 19, 2023, Bursa Securities rejected AAX’s application for the proposed relief and PN17 lifting but granted the airline an extension until Jan 17, 2024 to submit its regularisation plan. — Bernama
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