Govt played no role in Raja Azmi’s resignation

SEPANG: The government played no role in Malaysian Airports Holdings Bhd (MAHB) group chief executive officer (CEO) Raja Azmi Raja Nazuddin’s abrupt resignation on Monday, said Transport Minister Anthony Loke.

Loke said he wished Raja Azmi well. “I wish him good luck,” Loke told a press conference here yesterday to announce AirAsia Group Bhd’s fixed fare flights for the upcoming Chinese New Year (CNY).

On whether the government had pressured Raja Azmi to resign, Loke said there was none.

Raja Azmi’s appointment as MAHB group CEO was previously announced by Finance Minister Lim Guan Eng. The appointment came after Prime Minister Tun Dr Mahathir Mohamad’s approval.

The airport operator on Monday announced Raja Azmi’s resignation, two years short of his three-year contract, citing to pursue other opportunities. Raja Azmi joined MAHB on Feb 1, 2016 as chief financial officer before being promoted to CEO on Jan 4, 2019.

In the interim, MAHB chief operating officer Datuk Mohd Shukrie Mohd Salleh was appointed acting group CEO.

MAHB shares declined 4.5% to an intraday low of RM7.22 yesterday, before closing 3.97% or 30 sen lower at RM7.26. The stock was the second top loser on Bursa Malaysia. It lost RM500 million in market capitalisation in a single day to close at RM12.05 billion.

In the last year, it lost RM1.23 billion in market value.

Meanwhile, Bernama reported that a decision had yet to be made whether to continue with the RM1 regulatory service charge for passengers departing from airports in Malaysia. “Once the merger takes place, we will decide whether to continue with this charge or otherwise,” said Loke.

Loke was asked if the government would allow the Civil Aviation Authority of Malaysia to collect the RM1 charge, currently imposed by the Malaysian Aviation Commission, after the two entities are merged.

The merger is expected to take more than six months. Until then, the two entities will operate as usual pending discussions and measures to repeal some of the existing legal provisions.

Earlier at the event, AirAsia said it is not overly worried about the relatively higher cost of fuel following escalating tensions in the Middle East.

“To be fair, in terms of costs, we look at them on a day-to-day basis. On our jet fuel cost, we are doing a good job in hedging and estimating our future.

“So, when we take into consideration any of these additional flights, all matters are taken into consideration. But I would not say I am not too concerned about the fuel aspect of things as it does play a part because our modelling is based on certain aspects,” said AirAsia Bhd (Malaysia) CEO Riad Asmat.

AirAsia co-founder and chairman Datuk Kamarudin Meranun said the budget carrier has hedged about 50% to 60% of its 2020 jet fuel needs. “You can see that anytime jet fuel prices are down, we take the opportunity to hedge,” he added.

While he declined to say whether AirAsia would turn a profit for the fourth quarter ended Dec 31, 2019 (4QFY19), Riad said the airline is doing its best to manage the situation.

AirAsia slipped into the red in 3QFY19, posting a net loss of RM67.46 million compared to a net profit of RM804.03 million a year ago.

The weak quarterly earnings lowered the airline’s net profit for the first nine months ended Sept 30, 2019 (9MFY19) by 97% to RM80.72 million, from RM2.42 billion for 9MFY18.

Between Jan 21 and 31, AirAsia will be adding special late-night flights at fixed one-way all-in fares between Peninsular Malaysia and Sabah and Sarawak.

For example, flights from Kuala Lumpur to Sibu, Bintulu and Miri, as well as the Johor Baru-Sibu route will be at RM149, and from Kuala Lumpur to Sandakan and Tawau at RM199.

There will also be added flights for 20 routes across Malaysia and to Singapore. They include Kuala Lumpur to Langkawi, Penang, Sibu, Tawau and Singapore. Extra flights will be mounted from Ipoh to Johor Baru and Singapore as well.

Riad said the additional late-night flights will add 12,960 seats to its network in Sabah and Sarawak during the festive period, in addition to 65,826 extra seats across Malaysia and Singapore.

On whether the airline is expecting a significant take-up, Riad said based on last year’s promotional CNY fares, the tickets were sold out almost immediately. “It should be the same [this year], if not I will be in trouble and have to answer to my chairman,” Riad quipped.