There will be no merger of AirAsia’s aviation arm businesses into one new entity, according to Capital A CEO Tony Fernandes, who told Malaysian media outlets on Monday that all aviation operations will be injected under one existing structure.
Fernandes said this meant that four airlines under Capital A – AirAsia Malaysia, AirAsia Thailand, AirAsia Philippines, and AirAsia Indonesia, and AirAsia X (which operates AAX Malaysia and AAX Thailand) – will be operating separately under AirAsia Aviation Group (AAG).
“We are just injecting AirAsia airlines into AAX’s listing status…there is no merger. AAX will be renamed as AAG and there will be six airlines under it,” Fernandes said in the media reports. “As one company, we can take out a lot of costs, but there will be separate operations by each individual airline,” he told the media after launching the AirAsia SUPER Plus Unlimited subscription package here.
Previously, AAX CEO Benyamin Ismail said in a company statement that: “As we returned to black on the back of a robust recovery across all key metrics, we are progressing well” on a restructuring plan.
Ismail said in the statement that “the strategy being formulated is expected to entail a proposed acquisition of Capital A’s aviation arm, AirAsia Berhad (AAB) and AirAsia Aviation Group Limited (AAAGL), comprising AAAGL’s respective shareholdings in AirAsia Indonesia, AirAsia Philippines and AirAsia Thailand. Following the acquisition, AAB, AAAGL and AAX will form a consolidated aviation group, subject to the approval of our stakeholders and relevant regulatory authorities. While all airlines under 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. Leveraging the group’s wide network of over 130 destinations will provide us the opportunities to expedite our recovery after the completion of the regularisation plan.
Subject to receiving the requisite approvals necessary for the proposed restructuring plan, including from AAX board of directors, Bursa Malaysia Securities, AAX shareholders and other relevant authorities, AAX expects to complete the implementation of the plan by July 2023.
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