News
Capital A and AirAsia X establish aviation holding company
April 29th 2024
Capital A and AirAsia X (AAX) have signed a conditional sale and purchase commitment for AAX to acquire aviation businesses, AirAsia Berhad and AirAsia Aviation Group Limited, from Capital A. Read More » The deal follows a non-binding Letter of Acceptance signed in January. A holding company, AirAsia Group Sdn Bhd, will be established in a 6.8 billion ringgit (US$1.4 billion) transaction of shares and debt. “Today’s announcement is more than just a transaction. It is a unique and time-sensitive opportunity to elevate our aviation business to the next level while driving growth and profitability across core non-airline business portfolios for Capital A,” Capital A CEO and AirAsia Aviation Group advisor, Tony Fernandes, said. “The puzzle of bringing together all AirAsia airlines under a single umbrella had been on our minds for many years and the missing piece has finally arrived in the form of new generation Airbus aircraft.” Capital A is to hold 18.9% equity in the new holding company. AAX CEO, Benyamin Ismail, said the company “wholeheartedly” welcomed the strategic acquisition. “Over the next five years, we plan to leverage the extended range capabilities of the new specification aircraft to connect ASEAN to Europe, Africa, Central Asia and North America, solidifying our position as a key player in the global aviation market,” Ismail said. “The One Airline strategy accelerates our journey, leveraging existing routes, approvals and slots for rapid expansion. The process has been long-winding and intricate, but we remain committed to safeguarding shareholder’s interests.”
