Its CEO, Tony Fernandes, said the plan includes a RM6 billion capital reduction, but will not affect flight frequency or reduce employee benefits.

“The regularisation plan is designed to strengthen our balance sheet by eliminating losses incurred during the Covid-19 pandemic and reflect the true value of our underlying assets in Capital A,” he told reporters after AirAsia’s Christmas celebration at KLIA Terminal 2 today.

“I’m hoping that by February or March, we will have AirAsia Group as a new company and Capital A out of PN17. It is huge for me, really huge.

“It’s a simple plan, it’s just a capital reduction. So I hope Bursa will look at it favourably and approve it quite quickly.”

Fernandes said the plan represents Capital A’s ability to strengthen its financial position and reaffirms its commitment to driving long-term growth.

He pointed out that not many companies successfully exit PN17, and those that do often take many years to achieve it.

“What makes this milestone even more remarkable is that we have reached it while navigating the unprecedented challenges brought about by Covid-19,” he said.

“Once the plan is approved, Capital A will follow AirAsia X’s success in exiting PN17 almost a year ago.”

The regularisation plan has to be approved by shareholders and the High Court besides Bursa.

Fernandes said Capital A remains committed to regulatory compliance and will focus on mitigating risks, including market competition and operational disruptions.

“The group is confident of its strategic direction and its ability to execute the regularisation plan effectively, setting the stage for a stronger and a more resilient future,” he said.