In a surprising turn of events, Capital A has announced its decision to sell the two companies controlling Air Asia’s short-haul airlines to the medium to long-haul, low-cost airline AirAsia X, with a view to establishing an integrated airline business. This includes AirAsia Berhad, operating out of Malaysia, and the AirAsia Aviation Group, encompassing airlines in Thailand, Indonesia, the Philippines, and Cambodia operating under the Air Asia brand.
Tony Fernandes, CEO, Capital A described the change as an effort to streamline the group:
“All businesses across Capital A have been thriving and we are ready to grow. We need to raise funds for business expansion, but gaining access to capital has been challenging due to Capital A’s Practice Note 17 (PN17) status. We have been engaging committed investors who have expressed a strong preference for a pure aviation play.”
Dato’ Fam Lee Ee, Chairman, AirAsia X said:
“These strategic acquisitions serve as pivotal milestones in AAX’s post-PN17 revival strategy, bolstering our financial stability and enhancing our market positioning. The consolidation under the AirAsia brand as a one-listed entity reflects our commitment to capitalise on our regained strength and market confidence to deliver a unified and unparalleled travel experience for our guests and significant value for our shareholders.
Leveraging the strengths of all airlines under the AirAsia brand, we are poised to create a pure-play entity that propels us forward. The synergy created through these strategic acquisitions represents more than just a financial consolidation; it symbolises our role as a trailblazer in shaping the future of the aviation industry.”
During yesterday’s press conference, Fernandes shared a vision for a multi-hub network reaching Europe, American, and Africa, a destination that Fernandes views as having significant growth potential.
This evolution will enable Capital A to focus on what Fernandes described as the undervalued, non-aviation businesses including Teleport, Capital A Aviation Services, and MOVE digital.
For more like this see:
- Tony Fernandes, CEO Capital A – Keynote interview, “I think if you don’t use it, you’ll regret it.”
- Capital A’s new chatbot
- Keynote CEO panel – What is the future of the Asian aviation industry?
