The annual reports for the financial year ended Dec 31, 2020 (FY20) for AirAsia Group Bhd, now known as Capital A Bhd, and AirAsia X (AAX), show that Tony Fernandes and Kamaruddin Meranun received an annual salary of RM4.8 million each. Board members were given fees ranging from RM150,000 – RM401,500 even as the airline dealt with the impact of Covid-19 following the worldwide freeze on air travel.
Source: https://en.wikipedia.org
In September 2021, AAX posted a record quarterly loss of RM24.6 billion for the April-June period, eight times more than the previous year. It was the airline’s ninth successive loss.
In 2021, the group posted a net loss RM887 million for the third quarter ended Sept 30, 2021, up 4% from RM851.78 million in the corresponding quarter in 2020.
AAX, meanwhile, faces the issue of refunds demanded by passengers whose flights were cancelled over the past two years since the onset of the Covid-19 crisis. In April 2021, Fernandes assured some 450,000 customers waiting for refunds would get their money back, adding that AAX had been facing financial problems. According to the CEO of Capital A Bhd, AirAsia has settled over 90% of passenger refunds (as at 28 March 2022).
On Nov 12 last year, AirAsia said that its RM33.65 billion debt settlement scheme for AAX had been approved by 99% of its creditors through a vote at a meeting held that day.
On March 16, AAX in a separate statement said the company had lodged a sanction order for its debt restructuring with the Registrar of Companies with the formalities of the restructuring now completed. It said the lodgement of the sanction order meant that the financial effects could be recognised in the financial statements of the company and that, as a result, AAX would be able to reverse RM33 billion in liabilities and provisions for liabilities which have been waived under the scheme.
This is not the only anomaly. Sapura Energy’s CEO got RM71.9 million for FY2018 and RM84.2 million for FY2017. (It has been above RM80 million band between 2014 and 2017).
Another O&G company, Serba Dinamik Holdings Berhad has its principal executive director earning close to RM5 million in FY2021 while the company incurred a loss of over RM171 million in financial year 2021.
Should directors or CEOs of loss incurring PLCs be highly paid while the company is bleeding? Doesn’t make sense, does it?
References:
90% of AirAsia passenger refunds settled, says Tony Fernandes, Bernama/FMT,
28 March 2022
AirAsia top duo paid RM4.8 million each in 2020, www.malaysianow.com, 26 March 2022
Sapura Energy CEO’s salary is being paid averaged RM72 million to RM85 million a year despite company losing billions, www.thecoverage.my, 23 March 2022
Serba Dinamik Holdings Berhad 2021 Annual Report
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