AirAsia audit committee clarifies non-consolidation of associates

Kuala Lumpur

RESPONDING to claims of questionable accounting practices at AirAsia Bhd (AAB), its audit committee on Monday clarified that the budget carrier had sought to put out clearer financial statements to reflect its actual fiscal position but was unable to do so because of aviation rules in areas where its associates operate.

Tackling the issue of non-consolidation of its associate joint-venture companies in the region, AAB acknowledged that consolidation would better reflect the actual performance and financial position of the region's biggest budget carrier, but explained that aviation regulations in those countries do not allow it legal control over its associates as taking control would result in its associates losing their airline operating licence.