Capital A enters final restructuring phase

Capital A announced that all conditions required for the disposal of its airline business have now been met and that the sale and purchase agreements with AirAsia X have turned unconditional. This marks the final chapter in the consolidation of all AirAsia airline businesses under a single airline group, and the start of the next journey for Capital A as a multi-platform travel and digital group. With the agreements now unconditional, both parties will move ahead with the remaining steps, which are Capital A’s capital reduction and distribution, the allotment and listing of AirAsia X’s shares, and other procedural requirements. These are expected to be completed by December, which will be followed by the PN17 uplift application in the same month. Tony Fernandes. (PHOTO: Shutterstock) Tony Fernandes, CEO of Capital A said, “Today is a monumental day for me as we can finally say that the agreements have turned unconditional with all key requirements met. Over the last year we have pushed through every approval and obstacle faced to get these deals done. We are now in the final chapter of what felt like a never-ending ordeal. We didn’t stand still and came back stronger – a more robust airline group and a new powerful group of five companies under Capital A. We will begin our next journey with the two distinct companies. The airline group, which will be called AirAsia Group, will bring together all seven AirAsia airlines– medium and short haul– under one platform to operate as one network across the region, while Capital A will focus on expanding its five high-potential, high-growth travel and digital companies.” When the airline consolidation is complete, AirAsia Group will run as one operation with a strategy built around multiple key megahubs across the region rather than relying on a single home market. The vision is to be the world’s first narrowbody low-cost network carrier. This will improve connectivity for guests, optimise aircraft utilisation, lower unit costs and create room for new growth with a focus on narrowbody planes, including the Airbus A321neo and the longer-range A321XLR aircraft. Meanwhile, Capital A’s five remaining companies represent the next chapter of the group’s evolution beyond aviation. Each business – ADE (engineering), Teleport (logistics), AirAsia MOVE (travel platform), Santan (F&B business), and its brand licensing and IP business, Abc., which will be renamed to AirAsia NEXT. Together, they have the potential to become market leaders in their respective industries and to redefine the ASEAN business landscape– much like how AirAsia revolutionised air travel in the region. For Editorial Inquiries Contact: Editor Matt Driskill at [email protected] For Advertising Inquiries Contact: Head of Sales Kay Rolland at [email protected]