Air Asia buys $227m perpetual capital securities in Indonesian arm to improve gearing, avoid suspension

Air Asia buys $227m perpetual capital securities in Indonesian arm to improve gearing, avoid suspension

Capital A CEO Tony Fernandes speaks during a group news conference in Tokyo July 1, 2014. REUTERS/Issei Kato

Amid fears of suspension of operations for its Indonesian unit, Malaysian budget carrier Air Asia has announced the subscription of perpetual capital securities worth $227 million in the 49 per cent-owned airline PT Indonesia Air Asia (IAA) to improve the later’s gearing ratio and a negative equity position.

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