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Malaysia Capital A will merge AirAsia brands as CEO Tony Fernandes retires inside 5 years

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adminApril 13, 2024No comment
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MalaysiaCapital A Berhad said on Monday that it intends to sell its aviation business to long-haul operator AirAsia X Bhd in a bid to consolidate its long-haul and short-haul operations under one AirAsia brand.
The proposed transaction, which is subject to the signing of a definitive agreement and approval by shareholders and courts, involves the sale of AirAsia Berhad and AirAsia Aviation Group Ltd, which incorporates AirAsia’s units in Thailand, Indonesia, PhilippinesAND Cambodia– group CEO Tony Fernandes told reporters, without revealing any value of the transaction.

Full details of the deal will likely be announced “in the subsequent two weeks,” Fernandes told reporters at AirAsia’s 2024 outlook conference.

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“Eventually AirAsia X and AirAsia will be merged into one airline… my dream is for it to be one airline asian airline,” Fernandes said, referring to the 10-member Association of Southeast Asian Nations.

“We intend to combine both airlines and double passenger traffic to 200 million [per year] from about 80 to 90 million today,” Fernandes said.

AirAsia was founded in 2001 with two aircraft and has since grow to be certainly one of Asia’s largest low-cost airline operators, serving markets including: Southeast Asia AND China. Its fleet consists of 166 A320 and A321 aircraft, while AirAsia X has 17 A330 aircraft.

I’ve been doing this for 22 years. It’s the suitable time to retire. Leadership is about knowing when to step down

Tony Fernandes, CEO of AirAsia

“I’ve been doing this for 22 years. This is the right time to retire,” he said.

“Leadership is knowing when to step down.”

Both Capital A and AirAsia X were hit hard pandemic travel restrictions and classified by the Malaysian Stock Exchange as PN17 or financially distressed. Such corporations could also be delisted from the stock exchange in the event that they don’t stabilize their funds throughout the prescribed period.
Capital A CEO Tony Fernandes speaks during a press conference announcing that the conglomerate will merge the AirAsia brands. Photo: AFP

AirAsia X was faraway from the classification in November after taking steps to enhance its financial situation.

Fernandes said the group’s airlines would likely return to full pre-pandemic capability by the tip of the primary quarter. He said they’d 400 planes on order and Airbus will begin deliveries of recent A321 aircraft within the second quarter of 2025.

Fernandes said the airline sale will help Capital A raise funds and give attention to its non-aeronautical business, which incorporates payments company BigPay, logistics division Teleport and online travel agency airasia MOVE.

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“We believe that by separating the aviation business from Capital A, the non-aviation businesses within the group, which we feel are currently undervalued by the market, will also be recognized for their true value and potential,” he said in a separate statement. statement.

Capital A plans to present a plan to legalize PN17 by June 30, after the aviation sale is accomplished, he said.

Fernandes, a flamboyant former music industry executive, launched AirAsia as a low-cost airline flying to second-tier cities in Southeast Asia, shaking up the region’s aviation sector and provoking a number of competitors.

Malaysian conglomerate Capital A intends to merge the AirAsia brands. Photo: AFP
AirAsia X was launched in 2007 with lofty ambitions to operate long-haul flights, including Europe.
However, in 2012 it suspended flights to London and Paris attributable to rising costs, specializing in key markets similar to Australia, Japan and China.
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