KUALA LUMPUR, July 27 AirAsia Bhd CEO
Tony Fernandes said on Monday the company will recapitalise its
Indonesian affiliate so that the unit can meet a rule set by the
country's transport ministry.
AirAsia Indonesia has submitted a plan to boost
shareholders' equity ahead of a month-end deadline, Fernandes
said at a company event in Kuala Lumpur.
"We've always said that we're re-capitalizing the airline
and we will. There's not a second of worry that AirAsia
Indonesia will close down because of equity regulations," he
Concerns that the unit would be grounded by Indonesia's
transport ministry if it did not reverse a deficit in
shareholder funds had sent shares in AirAsia tumbling more than
15 percent earlier this month.
The ministry later softened it stance to say it would "help
and support" airlines to improve their finances.
(Reporting By Al-Zaquan Amer Hamzah; Editing by Muralikumar