Our Terms & Conditions | Our Privacy Policy
AirAsia X and Capital A advance towards a transformative aviation merger, pending shareholder approval at upcoming Extraordinary General Meetings.
SEPANG/KUALA LUMPUR – AirAsia X and Capital A have both announced significant milestones in the journey toward creating a newly integrated aviation group. Both companies have received clearance from Bursa Malaysia Securities Berhad for the Extraordinary General Meeting (EGM) circulars, setting the stage for shareholders to approve the proposed acquisition of Capital A’s aviation business by AAX. This strategic acquisition will merge the operations of AirAsia Aviation Group Limited, AirAsia Berhad, and AirAsia X into a streamlined entity.
The upcoming EGMs, scheduled for approximately three weeks after the circulation of the meeting materials, represent the next critical step in finalizing the merger. Shareholders from both companies will have the opportunity to vote on the proposal, which is expected to drive operational synergies, expanded market reach, and long-term growth for the newly formed AirAsia Group.
Strategic Benefits of the Acquisition
For AAX, the acquisition of AirAsia’s short-haul operations offers a chance to integrate AirAsia’s extensive network with its medium-haul capabilities. According to Dato’ Fam Lee Ee, Chairman of AirAsia X, “Bursa Malaysia’s clearance marks a pivotal milestone as we move closer to finalising this transformative acquisition. By integrating AirAsia’s extensive network with AAX’s medium-haul capabilities, we are set to unlock significant synergies that will not only streamline our operations but are projected to increase revenue and reduce operating costs. This acquisition is a strategic step that positions us to capture greater market share in the region and drive sustainable growth.
“The upcoming EGM will be a critical opportunity for our shareholders to shape the future of AAX. We are excited about the prospects that this acquisition will bring, enabling us to create a more robust and efficient airline group that meets the evolving needs of our guests while enhancing shareholder returns.”
From Capital A’s perspective, this transaction allows the company to separate its aviation and non-aviation businesses, making it easier to unlock value for shareholders and focus on growth across all its verticals. Capital A CEO Tony Fernandes highlighted the long-term benefits of this move: “We are beyond excited about the next step of the aviation transformation. We are set to redefine the aviation future with the birth of the new AirAsia Group, where AirAsia and AAX operations unite to deliver increased profitability and returns for the shareholders.
He continued, “This transaction is a key part of our long-term strategy to unlock unparalleled value for our shareholders and position Capital A for sustainable growth across all its business verticals. By separating our aviation and non-aviation businesses, we can better focus on building synergies within each entity, driving growth, and maximising shareholder returns. Importantly, this will also allow Capital A to have a clean balance sheet and focus on finalising its regularisation plan to exit Practice Note 17 (PN17) status. We look forward to receiving the support of our shareholders at the upcoming EGM as we embark on this transformative journey.”
A New Aviation Group on the Horizon
The successful completion of this acquisition will result in the formation of a new aviation powerhouse. The newly combined AirAsia Group will encompass both short-haul and long-haul operations under one umbrella, ensuring robust connectivity and increased market competitiveness. With focused management and a clear strategic direction, the group is well-positioned to capitalize on new opportunities in the rapidly evolving aviation sector.
For Capital A, the transaction is also a critical step toward resolving its Practice Note 17 (PN17) status. By reducing its aviation business and focusing on its non-aviation entities, the company aims to achieve a cleaner balance sheet and exit PN17 status, ultimately benefiting shareholders.
Looking Ahead
As both AAX and Capital A prepare for the EGMs, shareholders are expected to play a pivotal role in shaping the future of both companies. With the potential for increased profitability, enhanced market share, and a more focused business strategy, the merger marks a transformative chapter in the history of both AirAsia X and Capital A.
This acquisition represents more than just a business transaction—it’s a bold step toward redefining the aviation landscape in the region, solidifying AirAsia’s role as a key player in both the short-haul and long-haul markets.
George is the News Feed Manager, Content Creator, and Social Media Manager at the TravelDailyNews network of online newspapers. At the same time, he is completing his studies in the Department of Business Administration at the Athens University of Economics and Business.
Images are for reference only.Images and contents gathered automatic from google or 3rd party sources.All rights on the images and contents are with their legal original owners.
Aggregated From –
Comments are closed.