KUALA LUMPUR (Yosefardi) – AirAsia X, following the approval of the Air Service Licence (ASL) by the Directorate General of Civil Aviation, Ministry Transportation of Republic of Indonesia (DGCA), had on 23 January 2014 entered into a Joint Venture Agreement (JVA) with PT Kirana Anugerah Perkasa (PTKAP), the shareholder of IAAX (PT Indonesia AirAsia Extra) to govern the relationship between the parties.
IAAX was incorporated on 22 May 2013 as a limited liability company under the laws of Republic of Indonesia with authorised capital of Rp680,484,141,540 divided into 69,686,036 shares of Rp9,765 each with PTKAP holding fifty one per centum (51%) and AirAsia X holding forty nine per centum (49%).
The Parties agree that the primary business activity of IAAX shall, amongst others but not limited to is the business of scheduled international air transport for passengers, cargo and post using aircraft based on certain routes and schedules with overseas cities destinations and such other activities as agreed between the Parties and permitted by the Applicable Laws and Requirements from time to time (Business Activities).
IAAX submitted its application with the DGCA for ASL in June 2013. On 23 January 2014, IAAX received the approval for its ASL. Following this, IAAX will proceed with its submission for the Air Operator’s Certificate (AOC).
IAAX intends to establish its hub in Bali, which will be AirAsia X’s second international affiliate hub; a large tourism and travel market, with no current long haul low cost operator based there.
PT. Indonesia AirAsia (IAA) has established a market leadership position and operates robust, profitable and growing short haul networks, that will provide feeder traffic to IAAX thus consolidating AirAsia X’s dominance in the North Asian (China, Japan, Korea) and Australian markets, by offering greater connectivity options to its customers from hubs in Kuala Lumpur, Bangkok and Bali.
IAAX shall have a issued and paid-up capital of Rp292,950,000,000 divided into 30,000,000 shares of Rp9,765 each of which AirAsia X has subscribed for forty nine per centum (49%) shares, being its capital and investment outlay in IAAX up to year 2016, equivalent to a total capital contribution of up to USD14.7 million, from its internal generated funds.
PTKAP is principally engaged in the business of construction, trading, industry, printing, land transportation, agriculture, workshop, and services. The shareholders of PTKAP are also the Indonesian shareholders in P.T. Indonesia AirAsia.