AirAsia X (AAX) announced that it has entered into a non-binding letter of acceptance with Capital A for the proposed acquisitions of AirAsia Berhad and AirAsia Aviation Group Limited.
Capital A chief executive officer Tony Fernandes said the sale of the aviation business would see AirAsia X merging with AirAsia Bhd (AirAsia Malaysia) and AirAsia Aviation Group Ltd (AAGL). AAGL consists of AirAsia subsidiaries in Thailand, Indonesia, the Philippines and Cambodia.
“The strategic move positions AAX to become the overarching regional aviation provider for all short and medium-haul routes under the AirAsia brand name. This groundbreaking acquisition is expected to provide unparalleled advantages, including a strengthened market position, increased operational efficiency, and ultimately driving cost savings and enhanced financial performance,” AirAsia X said in a statement.
AirAsia X Chairman Fam Lee Ee 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. The future holds immense potential, and we are excited to embark on this transformative journey.”
Chester Voo will take up the role of deputy chief executive officer in charge of the airline operations, the company said. The company named former banker Farouk Kamal as deputy CEO, whose responsibilities include finance, aircraft leasing, investor relations and strategy, according to media reports. The separation of the airline business from Capital A will also allow investors to better value the non-aviation unit. Fernandes aims to have five listed companies under the group, he said at a briefing in Sepang, Malaysia.
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