July 8, 2015 / 9:17 AM / 4 years ago

REFILE-AirAsia Indonesia says no risk to licence to operate flights

(Corrects spelling of executive’s surname in the second paragraph)

KUALA LUMPUR, July 8 (Reuters) - Malaysian budget carrier AirAsia Bhd’s Indonesian affiliate said in a statement on Wednesday that there is no risk to its licence to operate flights in the country following a directive from the country’s transport ministry naming it among airlines that need to boost equity by July 31.

“We wish to emphasise ... operation remains as per normal and suggestions that our operational licence will be called into question are not accurate,” Sunu Widyatmoko, President Director of PT Indonesia AirAsia said in the statement.

The airline said its level of equity has “never been an issue” and that it will be in active discussions with the transport ministry on compliance with the directive. The airline, 49 percent-owned by AirAsia, was one of 13 airlines found by the ministry to have “negative equity”.

Shares of AirAsia slid more than 15 percent at one stage on Wednesday before closing 12.8 percent lower. The benchmark index fell 1 percent. (Reporting by Al-Zaquan Amer Hamzah; Editing by Kenneth Maxwell)

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