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AirAsia says charges against Indian unit ‘trumped up’ as shares tumble

May 30, 2018 1:30 PM
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PETALING JAYA: AirAsia Group Bhd, which saw its share price fall as much as 10% on news of investigations into its Indian unit, completely denies all accusations and contentions, calling the “trumped up” accusations baseless and motivated by considerations that as yet remain unknown.

The group’s share price closed 23 sen or almost 7% to RM3.08 today, with some 41 million shares traded.

“Allegations concerning indirect foreign control of AirAsia India Limited have been fully investigated and the director-general of civil aviation had effectively ruled that the operations and management of AirAsia India Limited (AAIL) was in accordance with Foreign Exchange Management Act as well as Foreign Direct Investment regulations,” it said in response to a query by Bursa Malaysia Securities Bhd.

The group went further to state that it will vigorously defend itself against the accusations to the fullest extent of law.

“Legal action to protect AirAsia and its interests against these allegations will be taken against any person who is known to have maliciously and frivolously instigated, and or smeared the good reputation of individuals and shareholders of AAIL,” it added.

Reports out of India state that the Central Bureau of Investigation said on Tuesday it was probing allegations that Tan Sri Tony Fernandes illicitly lobbied Indian officials for favourable treatment for his Malaysian-based carrier.

Besides Tony, investigators reportedly also named an AirAsia director, an aviation consultant and unidentified Indian government officials in its preliminary case.


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