Capital A’s restructuring enters final chapter, prepares for next journey

A group photo of the Board of Directors from all the Capital A entities, AirAsia X and AirAsia Aviation Group Limited pose for a group photo.
From left: Tan Sri Jamaludin Ibrahim, Dato’ Sri Mohammed Shazalli Ramly, Dato’ Abdul Mutalib Alias, Tan Sri Tony Fernandes, Brigadier General (R) Dato' Fadzillah Abdullah, Datuk Fam Lee Ee, Datuk Kamarudin Meranun, Dato' Abdel Aziz @ Abdul Aziz bin Abu Bakar, Dato' Mohamed Khadar Merican, Senator Datuk Dr Ras Adiba Radzi and Ms Chin Min Ming.

  • All key requirements for the airline disposal have been met and the agreements have become unconditional

  • Completion targeted for December, after which Capital A plans to apply for PN17 uplift by year-end, closing out this final chapter almost six years since Covid started

  • Post-completion, two focused companies will emerge: a unified AirAsia airline group and Capital A’s multi-platform travel and digital group

KUALA LUMPUR, 30 OCT - Capital A Berhad (“Capital A”) has 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 Berhad (“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. 

This milestone follows the fulfilment of all outstanding requirements; all stakeholder consent letters and the RM1 billion private place commitment letters for AirAsia X have been secured, and recently on 17 October, a major hurdle relating to a regulatory exemption required from Thailand was resolved. 

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, 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. 

I want to thank our Allstars who never gave up, and we will never forget those who stood by us throughout this journey. Our survival and resurrection shows us that resilience and discipline always wins.” 

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.

These businesses leverage Capital A’s vast ecosystem of data, technology and customer engagement to unlock cross-platform value. With strong leadership, proven execution capability, and a culture of innovation, Capital A aims to continue to scale these five companies, driving sustainable growth and creating value for its shareholders.

This announcement today confirms that the restructuring has entered its final chapter and that Capital A is preparing for the next journey after PN17.

Capital A, English, Global, MalaysiaRizal Redzuan -