AirAsia Indonesia will aim to improve equity, to table plan to authorities soon

[KUALA LUMPUR] Malaysian budget carrier AirAsia Bhd's Indonesian affiliate said on Thursday it is preparing a plan to improve shareholders equity and would present it to the country's transport ministry before the end of the month.

Concerns that the unit would be grounded by Indonesia's transport ministry if it did not reverse a deficit in shareholder funds had sent shares in AirAsia tumbling more than 15 per cent on Wednesday to five-year-lows.

Indonesia's transport ministry appeared to soften its stance in a statement on Thursday, saying it would "help and support"airlines to improve their finances. It did not mention any potential shutting down of airlines.

REUTERS