AirAsia parent to raise over RM400m for engineering arm

SINGAPORE (Feb 15): AirAsia’s parent Capital A Bhd is raising more than RM400 million in capital for its engineering arm, which plans to build maintenance, repair and overhaul (MRO) facilities at the Kuala Lumpur International Airport.

Chief executive officer (CEO) Tan Sri Tony Fernandes of Capital A, which owns Malaysia’s flagship budget airline AirAsia, on Tuesday (Feb 15) said the group would support growth of the wholly-owned Asia Digital Engineering (ADE) subsidiary.

“We’re looking to raise actually in excess of RM400 million to fund the expansion and growth [of ADE],” Fernandes said at a press briefing on the sidelines of the Singapore Airshow.

ADE CEO Mahesh Kumar, meanwhile, said it would cost about RM250 million to build the new facilities in Kuala Lumpur and that the company is open to developing similar facilities in Thailand, the Philippines and Indonesia.Read more