147
AirAsia X Berhad • Annual Report 2014
NOTES TO THE FINANCIAL STATEMENTS
AS AT 31 DECEMBER 2014
18 INVESTMENT IN A JOINT VENTURE
Group
Company
2014
RM’000
2013
RM’000
2014
RM’000
2013
RM’000
Unquoted investments, at cost
53,888
-
53,888
-
Group’s share of post-acquisition losses
(16,322)
-
-
-
37,566
-
53,888
-
The details of the joint venture are as follows:
Name
Principal place of business/
country of incorporation
Group’s effective equity interest Principal activities
2014
2013
%
%
PT Indonesia AirAsia Extra
(“IAAX”)
Indonesia
49
-
Commercial air transport services
On 23 January 2014, the Company entered into a Shareholders’ Agreement with PT Kirana Anugerah Perkasa (“PTKAP”) for the purpose of establishing a long-haul low cost
airline in Indonesia which will operate through an Indonesian incorporated entity, PT. Indonesia AirAsia Extra (“IAAX”). The Company subscribed to 14,700,000 ordinary shares,
representing 49% of the paid-up share capital of IAAX for a cash consideration of IDR143,545,500,000 (equivalent to RM53,888,000).
IAAX is a private company for which there is no quoted market price available for its shares.
There are no contingent liabilities relating to the Group’s investment in IAAX.
IAAX is operator of commercial air transport services which are based in Indonesia. This joint venture company is strategic investment of the Company and form an essential
part of the Company’s growth strategy. They provide access to a wider geographical market and network coverage in the provision of air transport services across the ASEAN
region.
