AirAsia X shareholders unanimously back value accretive acquisition of Capital A’s aviation business

Stronger together: Upon completion, the new aviation group will offer a comprehensive range of low-cost air travel services across short, medium, and long-haul routes, establishing KLIA as a leading aviation megahub and positioning Asean as a key global transit point

SEPANG, 16 October 2024 – AirAsia X (AAX) is pleased to announce that its shareholders expressed strong support for the Proposed Acquisition of Capital A’s entire equity interest in the aviation business within AirAsia Aviation Group Limited (AAAGL) and AirAsia Berhad (AAB) for RM6.8 billion, during the Extraordinary General Meeting (EGM) held today.

At the EGM, 99.08 per cent of shareholders voted in favour of the resolution, signalling strong support for AAX’s vision to capitalise on new market opportunities, strengthen operational synergies, and expand its service offerings. This pivotal decision clears the path for AAX’s transformative acquisition which is expected to be completed by the end of the year as an enlarged aviation group, subject to final court and regulatory approvals.

Additionally, shareholders voted in favour of the resolutions for the proposed issuance of free warrants, proposed private placement to raise gross proceeds of RM1 billion, proposed share capital reduction and proposed granting of subscription shares.  

Dato’ Fam Lee Ee, Chairman of AirAsia X said: “The unanimous approval from our shareholders marks a pivotal moment for AAX as we take a bold step forward in shaping the future of low-cost travel. 

“This acquisition will give us access to over 200 existing aircraft and 361 future aircraft order books from Capital A’s aviation portfolio, combining both narrow-body and wide-body aircraft into a unified group, enabling us to expand our reach across long, medium, and short-haul segments. With this enhanced fleet, we can operate more efficiently, offer better service to our guests, and strengthen our competitive position in key markets.

“Our focus now is on sustainable expansion and innovation, driving greater value for our guests and shareholders. As we move into this exciting new chapter, the enlarged aviation group is poised to capture even more growth opportunities and build a more sustainable business model for the decades ahead.”

Benyamin Ismail, CEO of AirAsia X said, “We extend our gratitude to our shareholders for their strong validation of our growth plans moving forward. This acquisition positions us on the brink of a transformative shift at AirAsia, uniting medium and short-haul operations into a powerful low-cost carrier network that will bring the world to Asean and Asean to the world.

“We will prioritise sustainable expansion, operational excellence, and innovation, ensuring that AirAsia continues to lead in the low-cost market. With over 23 years of experience in building market-leading airlines and multi-hub operations, we are not only better positioned to seize market opportunities but also to strengthen our competitive edge and build a future-ready airline that places our customers at the heart of everything we do.”

The proposed acquisition represents AAX’s long-term strategy to emerge stronger and more competitive in the global aviation industry. The recent launches of AAX routes to Almaty and Nairobi signal exciting new opportunities, with further expansion plans into Asia and Africa. The consolidation will significantly enhance network capacity and strengthen connectivity, offering guests a wider array of destinations and travel options for leisure and business.