News
AirAsia X plans takeover of Capital A's aviation businesses
November 30th 2022
AirAsia X (AAX) and Capital A will establish a combined aviation business to bring together medium-haul AAX and short-haul AirAsia brands. Read More » Under the proposed transaction, AAX will acquire AirAsia Berhad (AAB) and AirAsia Aviation Group Limited (AAAGL) from Capital A to create a consolidated aviation group. “While all airlines in the consortium will remain separate with regard to the operations, the acquisition of the short-haul airlines under one consolidated group will create synergies with AAX’s mid-range operations,” AAX CEO, Benyamin Ismail, said. “Leveraging the group’s wide network of more than 130 destinations will provide us with opportunities to expedite our recovery after the completion of the regularisation plan,” Bursa Malaysia has issued Capital A and AAX with a Practical Note 17 (PN17) notice because of their financial positions. The notice requires companies to submit and receive approval for a financial regularisation plan within a specified time to remain trading on the exchange. Both Capital A and AAX said the proposed deal would lift them out of PN17 status. Capital A CEO, Tony Fernandes, said Capital A shareholders will retain a direct interest in the aviation businesses by receiving shares in AAX after the deal is completed. Fernandes said: “together with our partners and our financial and legal advisors, we are finalising a scheme, subject to regulatory and other necessary approvals, that we anticipate will uplift us from PN17 status and unlock enormous value for the shareholders of Capital A. Ultimately, it will lead us to healthier financial standing and profitability.” The companies plan to complete the transaction by July next year.
