AAX sells DPE kits for US$2.38 million

PETALING JAYA: AirAsia X Bhd (AAX) is selling its Airbus DPE kits for US$2.38 million (RM10.2 million) to Asian Aviation Centre of Excellence Sdn Bhd (AACE), to set off invoiced fees owed by the airline to AACE.
“The parties further agree that the payment of purchase price by way of the foregoing contractual set-off constitutes a valid and sufficient consideration for the DPE kits,” AAX said in a filing with the stock exchange yesterday.
Both AAX and AACE yesterday entered into an agreement for the sale, assignment and transfer of the Airbus DPE kits (designated pilot examiner kits), which comprise data package, simulation software package and kit of genuine aircraft parts to be installed in the aircraft simulation training device.
AACE is in the business of operating an aviation academy for the provision of pilot training, maintenance training, cabin crew training, training for management services and guest services and is jointly owned by CAE International Holdings Limited and AirAsia Bhd.
AACE is deemed to be a related party to AAX by virtue of the fact that AirAsia’s directors and major shareholders (Datuk Kamarudin Meranun and Tan Sri Tony Fernandes) are also the directors and major shareholders in AAX.
The DPE kits will be royalty-free and will include non-exclusive licence for usage free from all encumbrances, for the manufacture, installation, qualification, development, operation, maintenance, upgrade and update, which will include the provision of training services to all AACE’s customers.
The agreement will not create material financial impact in the current financial year nor will it have any effect on the share capital and substantial shareholders’ shareholdings of AAX. It is not expected to have material effect on the net assets per share, earnings per share and gearing of AAX for the financial year ending in Dec 31, 2015.
“The directors having considered all the relevant factors in respect of the agreement are of the opinion that entering into the agreement is in the best interest of the company,” AAX said.
AirAsia X shares closed unchanged at 18 sen yesterday, with some 769,000 units changing hands.