Capital A will be selling 100% of its stakes in AirAsia Berhad and AirAsia Aviation Group Limited to AirAsia X as part of a business realignment for the company. Capital A will still retain other businesses under the aviation services and digital services.
In the realignment, Capital A’s stakes in its aviation business arm will be transferred to the medium-haul brand, AirAsia X. The brands include:
- AirAsia (under AirAsia Berhad)
- Thai AirAsia
- Indonesia AirAsia
- Philippines AirAsia
- Cambodia AirAsia
The decision was made after AirAsia X was lifted out from the Practice Note 17 (PN17) status in November 2023. The consolidation was aimed at turning the brand into the sole regional low-cost aviation group. The brand AirAsia is already well-known in the region for short and medium-haul flights.
According to AirAsia X, “A consolidated group of airline businesses is also envisioned to register further cost effectiveness attributable to a streamlined decision-making structure and fortified leverage in contracts negotiations through economies of scale, ultimately presenting a sounder ground for profitability.”
Captial A is still running AirAsia-related companies
Even as Capital A disposes the aviation arm of the brand, it is still handling several AirAsia-related aviation services and digital services. The services are:
- Asia Digital Engineering Sdn Bhd – handling aviation maintenance, repair and overhaul
- AirAsia SuperApp Sdn Bhd – handling the AirAsia Superapp
- Teleport Everywhere Pte Ltd – handling logistic and cargo
- BigPay Pte Ltd – handling digital payment
CEO of Capital A, Tony Fernandes said, “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. “
